EV Push To Absorb Rs 240 bn Of Automakers Capex
ECONOMY & POLICY

EV Push To Absorb Rs 240 bn Of Automakers Capex

Crisil Ratings expects the electric vehicle push to absorb about Rs 240 bn of the roughly Rs 600 bn capital expenditure planned by passenger vehicle makers over this fiscal and the next, signalling a structural shift in India’s car market. The agency said manufacturers are preparing to expand electric four-wheeler (E4W) portfolios and production capacity.

The report said E4W adoption is gathering pace despite charging and near-term profitability challenges, with investments in portfolio expansion, supply chain localisation and EV production. Average monthly E4W volumes rose around 40 per cent to about 26,000 units in the three months ended May 2026, and penetration increased to six point one per cent from the fiscal 2026 average of four point six per cent. Crisil said the investment push reflects improving ownership economics and wider product choices.

Crisil director Anand Kulkarni noted that over 40 per cent of the capex outlay was estimated for EV related expansion. The agency observed that a goods and services tax reduction on internal combustion engine vehicles in September 2025 temporarily narrowed the total cost of ownership advantage of E4Ws but that the long term growth trajectory remained intact.

The report projected E4W volumes could more than double to about 0.5 mn units by the next fiscal from roughly 0.22 mn last fiscal, raising penetration to eight to 10 per cent. It identified model availability, range improvements and ownership economics as key drivers, and noted that model counts had doubled to around 20 and could exceed 35 by the next fiscal. The agency cautioned that higher EV sales may not immediately boost automaker profitability and said localisation, charging expansion and policy continuity would be critical.

Crisil Ratings expects the electric vehicle push to absorb about Rs 240 bn of the roughly Rs 600 bn capital expenditure planned by passenger vehicle makers over this fiscal and the next, signalling a structural shift in India’s car market. The agency said manufacturers are preparing to expand electric four-wheeler (E4W) portfolios and production capacity. The report said E4W adoption is gathering pace despite charging and near-term profitability challenges, with investments in portfolio expansion, supply chain localisation and EV production. Average monthly E4W volumes rose around 40 per cent to about 26,000 units in the three months ended May 2026, and penetration increased to six point one per cent from the fiscal 2026 average of four point six per cent. Crisil said the investment push reflects improving ownership economics and wider product choices. Crisil director Anand Kulkarni noted that over 40 per cent of the capex outlay was estimated for EV related expansion. The agency observed that a goods and services tax reduction on internal combustion engine vehicles in September 2025 temporarily narrowed the total cost of ownership advantage of E4Ws but that the long term growth trajectory remained intact. The report projected E4W volumes could more than double to about 0.5 mn units by the next fiscal from roughly 0.22 mn last fiscal, raising penetration to eight to 10 per cent. It identified model availability, range improvements and ownership economics as key drivers, and noted that model counts had doubled to around 20 and could exceed 35 by the next fiscal. The agency cautioned that higher EV sales may not immediately boost automaker profitability and said localisation, charging expansion and policy continuity would be critical.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code