Union Minister Kumaraswamy has said that India's electric vehicle sector must build stronger localisation and become more cost competitive. His remarks were published on 23 September 2026 and have drawn attention across the Indian EV industry.
What Was Said
Speaking on the state of the EV sector, Kumaraswamy highlighted two key gaps. First, India needs deeper localisation of EV components. Second, costs must come down so that electric vehicles can compete better with petrol and diesel models.
The minister's comments come at a time when India's EV market is growing fast, but many parts, especially advanced battery cells and electronics, are still imported.
Why Localisation Matters
Localisation means making more EV components inside India instead of importing them. This can lower production costs, reduce dependence on other countries, and create jobs in manufacturing.
For buyers, stronger localisation could mean cheaper electric two-wheelers, cars, and buses. It could also mean faster availability of vehicles, since supply chains would be shorter and more stable.
Why Cost Competitiveness Is Key
Price remains one of the biggest reasons Indian buyers hesitate before switching to electric. Many EVs still cost more upfront than petrol or diesel models, even though running costs are lower.
If manufacturers can cut costs through local production, the price gap could shrink. That would make EVs attractive to a much wider group of buyers, from city commuters to fleet operators.
What This Means for the Industry
Kumaraswamy's message is a signal to automakers and component suppliers. Companies that invest in Indian manufacturing bases may be better placed as policy focus shifts towards domestic value addition.
Government schemes in recent years have already pushed for local battery and component production. The minister's remarks suggest this push will continue to be a priority.
What to Expect Next
No specific new policy or scheme was announced in the remarks. However, the industry will watch closely for follow-up measures that support local manufacturing and bring down EV prices.
For Indian EV buyers, the direction is clear. Cheaper, locally made electric vehicles would make the switch to electric easier and more affordable in the years ahead.