India-UK FTA and Tesla launch could boost EV awareness in the country: Pawan Goenka

India’s electric vehicle (EV) revolution is gaining fresh momentum, boosted by recent developments like the India–UK free trade agreement (FTA) and Tesla’s entry into the market, says industry veteran and former Mahindra & Mahindra MD Pawan Goenka.“The FTA signing that happened yesterday, and the launch of the Tesla Model Y last week — both will have a positive impact on the EV movement in India,” Goenka told CNBC-TV18. He believes these events will raise awareness and visibility for electric vehicles, encouraging consumers to explore homegrown EVs from Tata, Mahindra, and MG, which currently hold about 95% of the passenger EV market share.

Goenka says India’s EV journey has finally shifted into the fast lane after years of slower progress. Passenger vehicle EV penetration has crossed 4%, with three-wheelers leading at over 60% penetration and two-wheelers growing rapidly into high single digits. “The Indian EV movement took a long time, much longer than anyone had anticipated. But now I think we are getting there,” he added.

He highlighted how domestic EV products have reached world-class standards. “None of these models are compromised in any way, shape, or form. They’re as good as ICE engine models in terms of features, looks, and digital technology.”Goenka also praised the industry’s response to key consumer concerns like range anxiety and battery life. “Getting a 500-kilometre range is a breeze now… and some makers are offering lifetime warranty on the battery, which takes away the concern about replacement costs.”

On the question of EV exports, Goenka urged caution. “If you start trying to export before we are ready, we will fail… The focus now should be on building scale, controlling costs, and making the right products at the right price for the domestic market.” He expects exports to follow once the domestic market is firmly established.

Addressing the ongoing debate on hybrids versus pure EVs, Goenka reiterated his long-standing view: “Electric vehicles do two things — reduce dependence on imported oil and make our cities cleaner.” While hybrids improve fuel efficiency, they do not eliminate emissions. “I do not see hybrid vehicles — even strong hybrids — as the solution to the problem we are trying to solve.” However, he is open to plug-in hybrids as a parallel option but insists government policy should focus primarily on EVs and plug-in hybrids with strict guidelines to prevent misuse.

Watch accompanying video for entire conversation.