Global EV summit to be held in India next year
What's the story
India is revamping its electric mobility strategy in light of recent supply chain disruptions, such as the rare-earth magnet shortage. To this end, the National Institution for Transforming India (NITI Aayog) will hold a Global Electric Vehicle (EV) Summit in March-April. The event is expected to attract major international EV companies and senior government officials. Preparatory talks have already started with the Ministry of Heavy Industries and experts from India and abroad.
Objectives
Summit aims to boost EV adoption and investment
The upcoming summit will focus on formulating domestic policy mandates to drive EV adoption, particularly for e-trucks and e-buses. It will also address supply chain management in light of the rare-earth magnet crisis, emerging technologies in this space, and the development of EV charging ecosystems. A key goal is to attract investments from domestic and international institutions into India's EV sector.
Policy changes
India revises manufacturing incentive rules
In light of the rare-earth magnet shortage triggered by China's export control order in April, India revised its local manufacturing incentive rules. The changes allow e-truck and e-bus makers to import rare earth magnet-laden motors while still availing government subsidies under the ₹10,900 crore PM E-Drive scheme. This highlights India's dependence on Chinese imports for these critical components.
Incentive scheme
Incentive package for rare-earth magnet manufacturing
On November 26, the Union Cabinet approved a ₹7,280 crore incentive package to set up five rare-earth magnet manufacturing units across India. The scheme has a two-year gestation period for plant establishment and incentives will be disbursed over five years afterward. This move comes as part of India's efforts to strengthen its domestic EV supply chain and reduce reliance on imports.
Growth trajectory
India's EV adoption and future prospects
India's EV adoption has been modest, with a penetration rate of just 7.66% as of 2024, compared to the global average of 16.48%. However, the country's EV sector was valued at about $54 billion in 2025 and is expected to double to around $110 billion by 2029. So far this year, over two million EVs have been registered in India, accounting for some 7.92% of all new vehicle registrations during this period.