Policies localizing electric vehicle and battery manufacturing in India

This report analyzes the subnational policy landscape for electric vehicle (EV) and battery manufacturing across 14 major automotive states in India, emphasizing the role of state governments in deepening localization through the control of land, power, and infrastructure.

• India's automotive sector, valued at nearly USD 240 billion and contributing approximately 7.1% of GDP, has the potential to leverage the EV transition for local manufacturing opportunities. However, net localization for high-cost components like batteries, motors, DC-DC convertors, and on-board chargers remains low despite existing policies.
• State governments are critical to localization because they control essential levers including land acquisition, regulatory clearances, logistics infrastructure, and power tariffs. While 14 state governments offer financial support via capital or operating expenditure reductions, these policies are primarily focused on downstream assembly rather than upstream or midstream segments.
• Deepening localization requires targeted state-level policy instruments to address cost barriers in the midstream (precursor materials and cathode active materials) and upstream (critical minerals sourcing and mining) segments of the value chain.
• The report recommends six strategic actions for governments: de-risking midstream and upstream battery investments, supporting R&D and intellectual property, conducting new Production Linked Incentive Auto rounds, developing plug-and-play industrial land infrastructure, establishing skilled workforce programs, and implementing zero-emission vehicle mandates and public procurement.

APA

Dutta,, S. R. J. C. M. D. (2026). Policies localizing electric vehicle and battery manufacturing in India. International Institute for Sustainable Development. https://www.iisd.org/publications/report/policies-electric-vehicles-battery-manufacturing-india

Chicago

Dutta,, Swasti Raizada,Saumya Jain,Hrishabh Chandra,Tom Moerenhout,Manish Dua,Priyami. Policies localizing electric vehicle and battery manufacturing in India. International Institute for Sustainable Development, 2026. https://www.iisd.org/publications/report/policies-electric-vehicles-battery-manufacturing-india.

Wikipedia

{{cite report |last1=Dutta, |first1=Swasti Raizada,Saumya Jain,Hrishabh Chandra,Tom Moerenhout,Manish Dua,Priyami |title=Policies localizing electric vehicle and battery manufacturing in India |publisher=International Institute for Sustainable Development |date=22 April 2026 |url=https://www.iisd.org/publications/report/policies-electric-vehicles-battery-manufacturing-india |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{dutta2026policies, author = {Dutta,, Swasti Raizada,Saumya Jain,Hrishabh Chandra,Tom Moerenhout,Manish Dua,Priyami}, title = {{Policies localizing electric vehicle and battery manufacturing in India}}, institution = {International Institute for Sustainable Development}, year = {2026}, month = apr, url = {https://www.iisd.org/publications/report/policies-electric-vehicles-battery-manufacturing-india}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }