Good morning. In today’s edition — India’s electric vehicle industry grapples with trust and infrastructure challenges; budget expectations from the retail sectors; the alarming no-show of Indian students at Canadian universities; and the UK government’s immigration fee hike and its implications.

THE TAKE

Will India’s Electric Vehicle Industry Overcome the Trust Barrier?

Electric cars account for just 2.5% of annual vehicle sales, while electric two-wheelers are higher around 6%. 

Tata Motors currently controls approximately 62% of the electric car market, down from 73% the previous year.

In the electric two-wheeler segment, Bajaj Auto held nearly 25% market share as of December, closely followed by TVS Motor at around 23%. Meanwhile, Ola Electric, though leading on an annual basis, is rapidly losing market share. 

This is despite significant price cuts, while competitors have maintained their pricing. Ola Electric has fallen from the number one position to third place and appears poised to slip further as buyers gravitate towards brands they trust more—or believe they can trust more.

Buying a vehicle is fundamentally about trust—trust in the brand and its value proposition. However, in the case of electric vehicles, the challenge goes beyond trust. There is a product problem.

Trust And Range Anxiety Hold Back India’s EV Market

Worldover, potential and existing owners live in fear that the battery will drain while stuck in a traffic jam, and obviously nowhere near a charging station—which you cannot push your car to in any case. In the good old days, you could collect a few friendly souls and push your petrol car if there was a pump close by.

The importance of trust becomes paramount, as consumers must take a leap of faith—not just in electric vehicles as a concept, but also in the specific brand they choose.

This comes against the backdrop of a strong push by the government towards electric vehicles. Prime Minister Narendra Modi made a compelling case for green mobility and alternate fuels, including electric, during the Bharat Mobility Expo 2025, which opened last Friday in New Delhi.

The government’s push for investment in the mobility space is strategic, given the automobile industry’s critical role in the economy. It contributes 7% to India’s GDP and nearly 46%—almost half—of the manufacturing sector, making it a key generator of high-skill jobs.

India has never been an easy market to predict, as Indian consumers place a higher premium on value rather than just cost. Price a vehicle too high, and it might not move out of the dealership; discount it too much, and you might face the same problem. 

The good news is that Indians are facing the same range anxiety issues as automobile owners worldwide—except perhaps in Scandinavia—when it comes to purchasing an electric vehicle. 

Interestingly, electric two-wheelers, many used for hyperlocal deliveries, have already found a market, as have electric three-wheelers, which are used for both goods transport and passenger services.

In these categories, brand loyalty does not seem to play as significant a role in the choice of vehicle. 

For individual owners looking for long-term buys, however, the brand will matter. But product trust, unlike in regular diesel or petrol vehicles and two-wheelers, must be built not just by individual brands but collectively, in collaboration with local governments.

Charging Ahead or Stalling?

Interestingly, two-wheeler market leader Honda, with a 43% share of the segment, recently launched its electric two-wheelers priced at the higher end of the spectrum, between Rs 1.1 lakh and Rs 1.5 lakh. 

Honda appears to be signalling that it intends to approach this business as a sustainable one—without heavy discounting or relying on government subsidies, which are shrinking for a variety of reasons.

The company is also indicating confidence in its pricing, its brand, and the trust it already enjoys as a leading automotive name. 

As the electric vehicle industry matures rapidly in 2025 and value-conscious users hopefully get over their early fears, India could do a leap if not a leapfrog into green mobility much faster, at least proportionately than many other countries.

While manufacturers are working hard on both the back and front ends of the ecosystem—such as batteries—trust remains a more subjective but equally critical task. 

Maruti Suzuki has announced plans for fast charging points in India’s top 100 cities, with one every 5–10 kilometres, and a battery rental service. Tata Motors and Hyundai have also committed to setting up 500 and 600 public chargers, respectively, and working on battery-swapping solutions. 

However, building trust will require more collective effort from all stakeholders, including local governments and manufacturers alike.

CORE NUMBER

Rs 1.71 lakh crore

—⬇️ This is the total valuation erosion recorded in the past week among six of India's top ten most valued companies, led by significant declines in IT giants Tata Consultancy Services (TCS) and Infosys. TCS alone lost Rs 85,730 crore in market capitalisation, while Infosys shed Rs 15,861 crore. The losses in the IT sector contrast with gains in financial stocks, as ICICI Bank added Rs 63,360 crore and HDFC Bank gained Rs 58,570 crore in value. The significant reduction in market valuations of leading IT firms, particularly TCS and Infosys, may indicate volatility within the sector even as the financial sector recorded substantial gains.

MESSAGE FROM SELECTSOFTWARE REVIEWS

Accomplish More. Juggle Less.

When you love what you do, it can be easy to take on more — more tasks, more deadlines, more hours – but before you know it, you don’t have time to do what you loved in the beginning. Don’t just do more – do more of what you do best.

BELAY’s flexible staffing solutions leverage industry experience with AI systems to increase productivity without sacrificing quality. You can accomplish more and juggle less with our exceptional U.S.-based Virtual Assistants, Accounting Professionals, and Marketing Assistants. Learn how with our free ebook, Delegate to Elevate, and leave the more to BELAY.

Download now

FROM THE PERIPHERY

—🤔 Nearly 50,000 international students did not attend their designated educational institutions in Canada during March and April 2024, recent data from Immigration, Refugees and Citizenship Canada (IRCC) showed. Notably, approximately 20,000 of these students were from India, accounting for 5.4% of the Indian student population in Canada during that period, The Economic Times reported. Indian authorities are also reportedly probing potential connections between Canadian colleges and illegal migration networks in India. Some students are suspected of illegally crossing into the U.S. instead of attending their Canadian institutions.

—💸 Foreign Portfolio Investors (FPIs) withdrew a substantial Rs 44,396 crore from Indian equities in January.  This sell-off follows an investment of Rs 15,446 crore made by FPIs in the month of December. The significant outflow is attributed to a combination of factors, including a weak earnings outlook for domestic companies, a strengthening U.S. dollar, and rising U.S. bond yields. This withdrawal is also significantly higher than the Rs 25,743 crore outflow recorded in January 2024, reflecting heightened global uncertainty and a preference for safer investments among FPIs. 

—🫰 The UK government plans to raise immigration fees for skilled workers from £239 to £525, adding to the financial burden on Indian professionals seeking opportunities abroad, The Economic Times reported on Sunday. This comes at a time when US H1B visas are also under scrutiny, with expected cutbacks under the impending Trump administration. With UK immigration fees already among the highest globally, the hike will further raise the cost of hiring foreign workers, impacting employers and employees alike. While the rationale for the increase remains unclear, it risks making the UK a less attractive destination for skilled talent, especially amidst global competition for workforce mobility.

✉️ Write to us here, for queries or feedback

📩 Was this email forwarded to you? Subscribe

💰 Want to sponsor this newsletter? Contact us

💰💰 Found The Core interesting? Consider supporting us