New Research Shows Indian Automakers Leading the Way on Positive Advocacy for Battery Electric Vehicles

New InfluenceMap research into corporate engagement on automotive climate policy in India finds that Mahindra & Mahindra and Tata Motors have the most positive climate advocacy and among the highest current and future forecast battery electric vehicle (BEV) production in India.

The report also found that Japanese automakers with no current BEV production in India, led by Maruti Suzuki (Suzuki), are pushing for policies that promote a longer-term role for internal combustion engine (ICE)-powered vehicles, including hybrids, in India, as global demand for BEVs rapidly grows elsewhere.

Ambitious policies to accelerate the uptake of battery electric vehicles were recognized in a joint 2023 report from the International Energy Agency (IEA) and the National Institution for Transforming India (NITI Aayog) as being crucial for India to meet its climate targets. However, only 2% of all four-wheelers sold in India were battery electric in 2023, compared to over half of new three-wheelers.

Addressing the findings, InfluenceMap Director of LobbyMap Research on Transport, Ben Youriev, said:

“The analysis highlights how Indian-headquartered automakers are leading the charge for more stringent climate policy in India to promote battery electric vehicles. A recent landmark IPCC report found that "electric vehicles powered by low emissions electricity offer the largest decarbonization potential for land-based transport. Yet in contrast, many Japanese automakers appear to be pushing to weaken and delay key policies in India to promote such vehicles."

The report analyzed automotive industry engagement on climate policy in India for four-wheelers for the first time. It covered the 10 largest automakers in India by sales and their primary industry association, the Society of Indian Automobile Manufacturers (SIAM), analyzing publicly available advocacy data.

Other key findings from the analysis include:

• Maruti Suzuki executives in 2021-22 appeared to push to delay Indian fuel-economy (CAFE) standards for vehicles. Maruti Suzuki, Honda, and Toyota also appear to have urged the Indian government to adopt policies favoring ICE-powered hybrids over prioritizing BEVs under India's Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, with Maruti Suzuki and Toyota also pushing for lower goods and services tax (GST) rates for ICE-powered hybrids in 2022-24.
• There is widespread automaker support for the extension of the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, with more negative engagement on fuel economy (CAFE) standards. The Society of Indian Automobile Manufacturers (SIAM) and other automakers including Mahindra & Mahindra and Tata Motors have recently supported extending the FAME scheme which provides incentives for electric vehicle purchases. However, both Maruti Suzuki and SIAM appeared to have previously pushed back to weaken CAFE standards in India.
• In 2030, 19% of light-duty vehicles produced by automakers in India are forecast to be battery-electric (BEV). According to InfluenceMap analysis of industry-standard data from October 2023, Tata Motors is forecast in 2030 to have the highest percentage share of BEVs from its light-duty four-wheeler vehicle production in India at 46%, followed by Toyota (30%), Hyundai and Renault (both at 16%), Mahindra and Mahindra (15%), Nissan and Suzuki (both 11%), Volkswagen (10%), and Honda at 0%. No hydrogen-powered fuel-cell vehicles are forecast to be produced in India by any automaker in 2030.
• Automakers have consistently promoted biofuels and compressed natural gas (CNG) in road transport. Many automakers continue to support using fossil-based CNG-powered vehicles In India. Moreover, the US corn ethanol industry, through the Renewable Fuels Association, has also supported India's announced ethanol blending target.

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