India's electric vehicle (EV) sector is witnessing rapid growth, fuelled by government incentives, increasing environmental awareness, and a strong push for sustainable mobility. The Indian EV market is forecasted to expand from US$ 3.21 billion in 2022 to US$ 113.99 billion by 2029, with a 66.52% CAGR[1]. The government's Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) II scheme and the push for 30% electric vehicle penetration by 2030[2] have been significant drivers of this growth. However, to capitalize on this potential, significant investment in EV manufacturing capacity is needed.

A prominent listed automobile manufacturer sought to establish a state-of-the-art EV manufacturing facility in India to cater to this booming market and support the country’s sustainability goals. Primus Partners was engaged to facilitate an investment of over INR 1000 crore, providing end-to-end support, from project report preparation to securing approvals and incentives.

Our Approach

Primus Partners adopted a comprehensive and strategic approach to facilitate the client's investment in the EV manufacturing sector. We leveraged our deep understanding of the EV industry, government policies, and project management practices to deliver a comprehensive and effective solution. Our services encompassed the following key areas:

Preparation of a Detailed Project Report (DPR): We conducted an in-depth analysis of the market trends, regulatory environment, and business potential, crafting a detailed project report that aligned with both the company’s objectives and government policies.

Incentive Structuring and Negotiation: Our team critically examined the existing government schemes and policies to design an attractive incentive package, including tax benefits, subsidies, and grants for the client. We also supported the client in negotiations with the State government to help secure the best incentive package, thereby ensuring the project’s financial viability and long-term sustainability.

Stakeholder Coordination: Primus Partners coordinated with key government agencies and regulatory bodies to secure necessary approvals and clearances, ensuring compliance with regulatory frameworks.

Timely Availment of Incentives: We supported the client by facilitating the smooth and timely processing of tax benefits, grants, and other financial and non-financial supports that were crucial for reducing the project's cost.

The Benefits

Environmental Sustainability: Reduced carbon emissions through the adoption of EVs

Air Quality Improvement: Fewer pollutants contributing to cleaner air in urban areas

Job Creation: Employment opportunities across manufacturing, R&D, and sales

Economic Stimulation: Local economy benefits from new business investment

Technological Innovation: Pushing advancements in EV-related technologies like batteries and charging infrastructure

Encouraging Adoption: Investments in EVs and charging infrastructure will make these vehicles more accessible and affordable, encouraging consumers to switch from traditional vehicles