India set to become ‘major producer’ of electric vehicles like China: Mark Mobius
India, which began its electric vehicle (EV) journey with two-wheelers, is set to emerge as a “major producer” of electric vehicles on par with China in the coming years, according to renowned global investor Mark Mobius.
Speaking to IANS, Mobius, a prominent voice in international finance, shared his optimistic outlook on India’s rapidly expanding EV market, noting that the country’s growing momentum and large domestic market position it to become a global EV powerhouse.
“India started out with smaller EVs, but it will eventually become a major producer of electric vehicles,” Mobius said. “With its vast domestic market, India doesn’t have to rely on exports. It can easily produce large quantities to meet local demand.”
The surge in electric vehicle sales in India has been remarkable, particularly under the PM E-DRIVE scheme, a government initiative aimed at accelerating the transition to sustainable transportation. Sales of electric two-wheelers (e-2W) saw a significant rise, reaching 571,411 units in the fiscal year 2024-25. In the same period, electric three-wheelers (e-3W), including e-rickshaws and e-carts, registered 1,164 units sold, while the L5 category electric three-wheelers hit 71,501 units.
The government’s strategic support through schemes like the Electric Mobility Promotion Scheme (EMPS) and the PM E-DRIVE, which was approved recently by the Union Cabinet with a financial outlay of Rs 10,900 crore, is expected to drive even more growth. The PM E-DRIVE scheme, effective from October 1, 2024, aims to boost EV adoption by offering upfront incentives for EV purchases and encouraging the development of essential charging infrastructure. The scheme is set to run until March 2026.
Mobius pointed out that India’s trajectory mirrors that of China, which has grown into the dominant global player in the electric vehicle sector, driven by its enormous domestic demand. India’s large and diverse population offers a similar opportunity for EV manufacturers to scale up production and meet domestic needs.
“In a few years, India will be in the same position as China and will make significant strides in the global EV market,” Mobius added.
He also emphasized India’s broader economic potential, predicting that the country’s creative and diverse culture will be a driving force behind its rise as a $5 trillion economy. “One of the strengths that India has is the preservation of different cultures. You have different states, different languages, and different traditions—this diversity is a big source of creativity that will help build new industries, ideas, and inventions,” Mobius said.
As India continues to advance its electric mobility agenda, it is not only positioning itself as a major player in the global automotive industry but also as a key player in the global fight against climate change, with cleaner, more sustainable transportation options.
With significant government backing and a growing appetite for electric vehicles, India’s electric future seems brighter than ever.
