Energizing India's EV Future: How Legacy Manufacturers and Startups Can Collaborate to Build a '#MadeInIndia Global EV Powerhouse

As India accelerates its transition to electric vehicles (EVs), new players like Vaidhyuthi Mobility (VM) are emerging as critical drivers of innovation and growth within the three-wheeler (3W) electric vehicle market. As a startup focused on manufacturing 3W EVs, VM intends to differentiate itself by offering the lowest total cost of ownership (TCO) in the market. This is a crucial factor for buyers, particularly in India’s price-sensitive market, where cost efficiency can significantly influence purchasing decisions. VM’s emphasis on cost-effective design, superior energy efficiency, and extended battery life positions it as a promising player in an increasingly competitive space.

What sets VM apart is its focus on leveraging advanced technologies to minimize operating costs, reduce maintenance, and maximize vehicle uptime. By integrating cutting-edge battery management systems and adopting modular designs that streamline production processes, VM is poised to offer innovative, fit-for-purpose electric vehicles tailored to the unique demands of last-mile transportation. These features make it an attractive option for both commercial and individual buyers looking for reliable, affordable mobility solutions.

India’s EV Transition Targets: A Blueprint for a Sustainable Future

India’s journey toward clean energy transition is guided by an ambitious set of EV transition targets. These targets are part of the country’s broader strategy to reduce its reliance on fossil fuels, combat climate change, and improve urban air quality. The government’s vision, outlined under the National Electric Mobility Mission Plan (NEMMP) and bolstered by global commitments made at the 2021 UN Climate Change Conference (COP26), is clear: by 2030, India aims for significant electrification across its transportation sector.

The key EV transition targets include:

·?????? 100% Electrification of Public Transport and 30% of Private Vehicles by 2030: This ambitious goal is aimed at reducing greenhouse gas emissions and decreasing India’s dependence on oil imports. By 2030, the government seeks to electrify 30% of private cars, 70% of commercial vehicles, 40% of buses, and 80% of two- and three-wheelers. These targets are particularly important given that transportation contributes significantly to urban pollution and climate change.

·?????? 100% Electrification of Three-Wheelers by 2030: Three-wheelers play a crucial role in India’s last-mile transport and urban delivery systems. The government’s target is to have all new sales of three-wheelers be electric by 2030. This presents a massive opportunity for startups like Vaidhyuthi Mobility, whose focus on producing affordable, efficient 3W EVs aligns perfectly with this vision.

·?????? FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) Scheme: Under the FAME II program, the government has allocated substantial subsidies to encourage the adoption of EVs, especially in public transport and commercial segments. The scheme supports the transition to electric two-wheelers, three-wheelers, buses, and fleet vehicles by offering financial incentives and bolstering the EV manufacturing ecosystem.

·?????? Electrification of Ride-Hailing and Delivery Services: Major ride-hailing platforms like Ola and Uber, along with delivery services such as Zomato and Swiggy, have committed to fully electrifying their fleets by 2030. This aligns with the government’s push toward 100% fleet electrification for commercial services, a goal that Vaidhyuthi Mobility is well-positioned to support with its focus on delivering cost-effective EV solutions for fleet operators.

By adopting these targets, India is not only working toward reducing carbon emissions but also creating a vibrant ecosystem for EV innovation and manufacturing. Startups like VM are essential to achieving these goals, as they bring innovative solutions to the market that can help accelerate the transition to clean mobility.

The Power of Collaboration: A Vision for India’s EV Manufacturing Ecosystem

As India’s EV ecosystem matures, potential collaboration between emerging startups like VM and established players such as Mahindra Last Mile Mobility will be essential to solidifying India’s position as a global leader in EV manufacturing. By fostering partnerships across the value chain, these two ends of the spectrum—innovative startups and legacy manufacturers—can create a synergistic environment that accelerates the development of a robust and scalable EV ecosystem.

For a startup like VM, collaboration with industry leaders like Mahindra offers opportunities beyond capital infusion and technical knowledge transfer. By working alongside Mahindra, VM can benefit from access to established supply chains, robust manufacturing expertise, and market credibility. Such alliances can help the startup scale rapidly, expanding its production capacity and market reach, while maintaining the agility to innovate. VM’s potential to integrate battery swapping solutions, modular platforms, and even introduce future-ready technologies like hydrogen fuel cells can inject new energy into India's evolving EV landscape.

Conversely, established manufacturers like Mahindra stand to gain significantly from partnerships with agile and nimble startups like VM. While Mahindra has already captured significant market share in the 3W EV segment, it could benefit from VM’s fresh approach to design and cost reduction strategies. Startups bring an element of disruption and rapid iteration that is sometimes harder for large, established companies to achieve. By incorporating innovations from startups, legacy manufacturers can stay ahead of the curve and continue to push boundaries in terms of affordability, performance, and sustainability. The infusion of startup-driven creativity and innovation can help Mahindra maintain its competitive edge in a fast-evolving market.

A Collaborative Path to Making India a Global EV Manufacturing Giant

The rise of collaborative partnerships between startups and legacy manufacturers is a crucial piece of the puzzle in making India a global EV manufacturing powerhouse. As the world shifts towards sustainable transportation, India can build an ecosystem that not only serves domestic demand but also meets global EV needs. To achieve this, an ecosystem-wide approach is necessary—one that fosters cross-sector collaboration, enables shared R&D efforts, and builds an integrated supply chain.

By pooling resources and aligning on common goals, startups like VM and giants like Mahindra can collectively raise the standards of the EV industry. VM’s ability to push the envelope with low-cost, high-efficiency solutions can complement Mahindra’s existing infrastructure and market leadership, creating a holistic ecosystem capable of delivering affordable, scalable, and sustainable EV solutions. This collaboration will also ensure that India stays at the forefront of global EV trends, positioning the country as a key player in the international market.

To achieve India's ambitious 2030 EV transition targets, fostering an environment where innovative startups and established players co-exist and collaborate will be crucial. This kind of ecosystem-level thinking will not only enhance India's manufacturing capabilities but also catalyze the development of a resilient, future-ready EV sector that can lead the world. The road ahead is filled with challenges, but by working together, India can set a global standard for sustainable mobility and emerge as a true leader in the EV revolution.

The call to action is clear: India’s EV revolution must be collaborative, inclusive, and forward-thinking to unlock its full potential. It will be a dream come true if Viksit Bharat’s agenda also has the imagination wherein manufacturing startups like, Vaidhyuthi Mobility, and EV manufacturing leaders like, Mahindra Last Mile Mobility, collaborate to offer a blueprint for how startups and legacy manufacturers can create a sustainable, innovative ecosystem that not only transforms the way India moves but sets a precedent for global leadership in clean mobility solutions.

Hari Vasudevan Rajkumar V K Swati Mittal