Penetration across segments has been gradually ramping up; a material decline in battery prices helped lower the upfront cost and offset a gradual reduction in the subsidies offered. Significant investments incurred towards development of electric vehicle platforms. As funding environment for start-ups cooled off a bit, investors remain bullish on the growth prospects for the EV sector.

• India’s electric vehicle (EV) sector has seen a notable improvement in prospects since FY2022, supported by Government subsidies, rising consumer awareness, and a steady stream of new product launches.
• China remains the dominant force in the global rare earth supply chain, accounting for around 70% of production and 90% of processing capacity—especially for complex elements like neodymium magnets, which are critical to EV traction motors and sensors. While countries like Vietnam and Malaysia offer limited alternatives, China’s scale gives it significant control over pricing and availability.