India-EU FTA will cut tariffs on European cars, EVs to benefit by 2032
The Free Trade Agreement (FTA) between India and the European Union (EU) is a boon for buyers interested in scooping up European-made cars. According to the FTA, import tariffs on cars manufactured in Europe will reduce from as high as 110% to as low as 10%, according to reports. The number of cars which can be sold under the FTA, however, has been capped to 250,000 vehicles.
Electric vehicles (EVs), however, will not enjoy the benefits as of now. They will see tariff cuts after five years, most likely by 2032. This measure has been taken to protect the nascent EV manufacturing industry.
Battery cell manufacturing PLI scheme falls woefully short of 50 GWh target in four years
According to a new report by the Institute for Energy Economics and Financial Analysis (IEEFA) South Asia and JMK Research, India’s ambition to build batteries domestically is not seeing much progress. It has delivered just 2.8% of its targeted capacity in four years, reported Down to Earth. Launched in 2021, the Advanced Chemistry Cell (ACC) Production Linked Incentive (PLI) scheme, planned to build 50 GWh of battery cell manufacturing capacity by 2025. ₹18,100 crore was outlined for it as well. But, only 1.4 GWh of capacity has been commissioned by October 2025. That too, only by Ola Electric.
EVs overtake petrol vehicles for first time in EU in December 2025
In the EU, sales of electric cars surpassed sales of petrol-only cars for the first time in December 2025, according to data from the auto industry group ACEA. Reuters reported that EVs made up 22.6% of cars registered in the EU last month, while petrol cars were just behind at 22.5%. Gasoline-electric and plug-in hybrids commanded the sector with 44% registered vehicles. The data revealed that EVs and hybrids are gradually becoming the popular choice. This is important considering that policymakers are planning to ease emission regulations to allow more room for fossil-fuelled vehicles to be manufactured for a longer time.
Vietnamese auto manufacturer ties up with BYD to build $130 million battery facility
Vietnamese auto manufacturer Kim Long Motor is partnering with Chinese EV giant BYD to develop a $130 million plant for producing batteries for EVs in Vietnam, reported Reuters. According to the deal, Kim Long Motor will sponsor the construction of the facility, with BYD providing technical and technological support. Based in central Vietnam, the plant will be built on 4.4 hectares, with a capacity of 3 GWh. There are plans to expand up to 10 hectares and double its production capacity to 6 GWh in the second. This plant will manufacture batteries for commercial EVs like buses, trucks, and minibuses as well as electric passenger cars.
Gravita India to set up 6,000 MTPA lithium battery recycling plant in Gujarat
Rajasthan-based recycling company Gravita India has plans to enter the lithium-ion battery recycling market with the launch of a battery recycling plant in Mundra, Gujarat. According to a report, the facility has a capacity of 6,000 metric tonnes per annum (MTPA), and Gravita has pumped around ₹14 crore for the commissioning of the project. The focus will be on safe and sustainable recycling of batteries using advanced technology to minimise toxic chemicals and waste during the recycling process.
Hindalco’s ₹25,500 crore aluminium plant expansion to boost battery and storage systems manufacturing
Aditya Birla Group’s metals arm Hindalco Industries Ltd has plans to pump in ₹21,000 crore to expand its aluminium smelter in Odisha. Odisha Plus reported that the metals giant has already commissioned a ₹4,500-crore facility for flat rolled products and battery-grade aluminium foil production. These will serve as raw materials for lithium-ion batteries in EVs and energy storage systems, giving a big boost to these upcoming green industries. Interestingly, part of the power for the smelter will be met through round-the-clock renewable energy, integrating sustainability and energy transition. Also, this expansion can employ nearly 23,000 people, while the next phase is expected to generate over 15,000 additional direct and indirect jobs.