June 11, 2025,
Business APAC
Politics Hits the Pedal on EV Markets
A single statement by former U.S. President Donald Trump has sent shockwaves through the global EV landscape.
In June 2025, Elon Musk’s Tesla was making major moves in India—showrooms launched, local leadership appointed, and a $2 billion sourcing deal in progress with Tata. But Trump’s public criticism—calling the move “unfair to America”—has sparked diplomatic tension and a significant drop in EV confidence across markets.
THE DROP IN EV MARKETS: Stocks Take a Hit
Tesla shares dropped by 14%, wiping nearly $150 billion in market value before slightly rebounding.
Tata Motors lost 5%, and key EV suppliers like Bharat Forge and Sona Comstar followed suit with 4–5% declines.
Analysts predict a 40% drop in EV growth for India’s mid-market players due to disrupted supply chains and Tesla’s cautious stance post-backlash.
The drop in EV optimism has put pressure on India’s plans to become a global EV hub. Smaller startups are now expected to face a 12–18-month delay in achieving their original targets.
LATEST DEVELOPMENTS
Tesla has postponed its factory plans in India. For now, it will only operate showrooms.
Tata Motors, however, is going full throttle, announcing a ₹33,000–35,000 crore investment to lead India’s EV race by 2030.
Starlink has finally secured its satellite communication license in India and is preparing for commercial rollout.
Meanwhile, Maruti Suzuki cut its e-Vitara EV production by 70%, citing rare-earth material shortages. Another major factor contributing to the drop in EV output.
POLICY BACKDROP: India’s EV Ambitions Remain Firm
Despite recent setbacks, India’s government continues to push the EV agenda with:
Import duty slashed to 15% for investments over ₹4,000 crore.
₹18,000 crore allocation under FAME-II
₹76,000 crore incentives for semiconductors
These policies aim to revive confidence and reverse the current drop in EV momentum.
BUSINESS IMPLICATIONS: Global Politics, Local Consequences
Trump’s remarks may have been aimed at protecting American jobs, but they’ve rattled investor confidence abroad. Tesla’s cautious retreat has created a vacuum, and Indian firms now have the opportunity to step up.
Global capital is watching: will India fill the gap and build self-reliance, or become a casualty of international boardroom politics?
A Crucial Crossroads for India’s EV Future
The drop in EV growth isn’t just about stocks or factories—it’s about the future of clean mobility.
With Tesla retreating and domestic giants like Tata investing more than ever, India stands at a turning point.
Will India rise to lead its own EV revolution—or continue to rely on uncertain foreign partnerships?
Follow Business APAC for more updates on how politics, innovation, and strategy are shaping Asia’s business future.
Also Read; India Gains Key Access to China’s Rare Earth Minerals
