Indian electric vehicle industry expansion

The Indian electric vehicle manufacturing sector is experiencing growth through new capital investments, government incentives, and innovative financing models.

Startups such as Matter and Omega Seiki Mobility have secured significant funding to expand production capacity, research and development, and retail footprints. Matter raised approximately ₹2.4 billion to increase its monthly motorcycle production, while Omega Seiki Mobility secured ₹50 crore to accelerate the rollout of next-generation mobility products.

Established manufacturers are also implementing strategic shifts. Mahindra has expanded its ‘Battery-as-a-Service’ (BaaS) program to its full Electric Origin SUV lineup, including the BE 6 SPORTEQ, XEV 9S, and XEV 9e. This model utilizes a dual-loan structure that separates vehicle financing from battery financing to lower upfront acquisition costs; for the XEV 9S and XEV 9e, battery usage costs are calculated at an effective rate of ₹3.75 per kilometer.

Additionally, Ola Electric has been sanctioned ₹95.81 crore in incentives under the Ministry of Heavy Industries’ Production Linked Incentive (PLI) Scheme for the 2026-27 fiscal year. This marks the company’s third consecutive year of receiving incentives, following previous sanctions of ₹73.74 crore for FY 2023-24 and ₹366.78 crore for FY 2024-25, with funds to be disbursed through IFCI Limited.