India Rethinking EV Policy Push Post Rare Earth Curbs

IN INDIA'S POLICY circles, a steadfast focus of driving vehicular electrification by largely incentivizing a singular technological platform—battery electric vehicles or BEVs—at the cost of all other technologies, could be in for a change.

- ANIL SASI

The immediate trigger for this has come from China's newly imposed restrictions on rare earth magnets and related materials that kicked in from April 4, which are beginning to impact automakers across the world. This includes vehicle manufacturers in India.

Beijing's move has set off an informed discussion within top levels of the government that multiple geopolitical issues need to be considered afresh while picking vehicular technologies, and whether the choice of BEVs in the eventual goal of vehicular electrification could mean playing entirely into the hands of Chinese at the cost of India's own local ICE (internal combustion engine) auto value chain and ancillary ecosystem.