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Below  the Perspective on Electronic Vehicles Outlook by Karthick Jonagadla, Investment manager on smallcase and Founder of Quantace Research

From FAME to Fleet: E-Bus Tailwinds + Lower Lithium

India’s EV story is steady. Three things are helping even after subsidies ended:

 1) Premium EV policy: India now lets a limited number of expensive EVs come in at a much lower tax (15%)—but only if the carmaker invests ?4,150+ crore and starts building in India on a deadline. This brings better cars and more local jobs.

2) E-bus push with payment security: The government has created a system that assures bus operators get paid on time. That makes e-bus orders safer and bigger, which is good for bus makers and companies that build depots and chargers.

3) Cheaper battery inputs: Lithium prices are well below 2022 peaks. Batteries are still volatile, but costs are far better than before.

 What the data shows (Aug 2025): EV cars sold ~17,300 units. Electric two-wheelers did ~1.03–1.04 lakh. Adoption is widening.

How to position:

1) Lean into the e-bus ecosystem (bus OEMs, depot charging, cables, grid links).

2) Back disciplined car makers with strong local sourcing.

3) Prefer charging players tied to city tenders.

4) Be cautious on battery-cell manufacturers until new Indian plants actually start production; meanwhile, cheaper lithium helps pack assemblers using imported cells.

 fBottom line: Outlook is constructive, but picking the right stocks matters.