The Indian middle class is finally cracking. Fuel prices have gone ballistic in Delhi and Mumbai. Petrol now costs more than a decent curry. And people are voting with their wallets. EV sales in India surged 50% last quarter. Tata and Mahindra are cleaning up. But British automakers? They are stuck in the slow lane.
Westminster sources tell me there is quiet panic in the Department for Business and Trade. The UK’s once-proud auto industry is losing the race for the world’s third-largest car market. Why? Three words: range, cost, and charging.
First, the cost. Indian customers are price-sensitive. They want a car that pays for itself in three years. EVs do that now, if you factor in fuel savings. But the upfront sticker shock is brutal. A Tata Nexon EV costs about £12,000. That is cheap. But a Jaguar I-PACE? That is £70,000. British brands have not yet cracked the budget EV code. They are fighting for the top end while the middle is expanding.
Second, range anxiety. India’s charging network is a joke. Only 2,000 stations for 1.4 billion people. But home charging works for most. 80% of Indian EV owners charge overnight. The real challenge is trust. British automakers need to prove their cars can handle Delhi’s heat and potholes. They have not done that.
Third, the supply chain. India wants domestic manufacturing. Import duties on EVs are 100%. The government is pushing 'Make in India'. Tata and Mahindra already have factories. British firms are still debating whether to build. They are losing time.
But there is a deeper issue. The UK’s car industry is obsessed with Europe and the US. India is an afterthought. The lobby in Whitehall is full of Europhiles. They do not understand the Indian consumer. They think a Mini or a Range Rover will sell itself. It will not.
Backbench MPs from constituencies with car plants are getting nervous. They are hearing from unions that jobs are at risk. The Business Secretary is under pressure to offer subsidies. But the Treasury is resistant. They see it as a bailout for fat cat companies.
The irony is that India is not hostile to British brands. They loved the classic Hindustan Ambassador, which was based on the Morris Oxford. There is nostalgia. But that goodwill is fading.
I spoke to a senior British executive in Mumbai. He told me off the record: 'We missed the bus. We are trying to catch up, but the infrastructure cost here is a nightmare. And the government is not helping.'
The truth is that the UK’s industrial strategy has been weak for decades. We sold off our volume car makers. We kept only luxury brands. And now luxury is a liability in an emerging market.
So what happens next? Either the government wakes up and pours money into an India strategy. Or British car makers will be left in the dust. The polls show voters care about the cost of living. They do not care about Jaguar. But if the industry collapses, the electoral map will shift.
Expect a cabinet row in the next few months. The PM is distracted. The Chancellor is hawkish. But backbenchers will rebel. They always do when jobs are on the line.
For now, Indian commuters are buying Tata. British bosses are sweating. And the lobby is whispering about who will blink first.
