Title:

Electric Vehicle Ecosystem Innovation: Government Policy Integration and

Market Transformation Strategy

Program:
Executive Post Graduate Programme (EPGP)

Course Name:
Innovation and Technology Strategy

Term: III

Submitted By: Group 4

Roll Number Name
2025EPGP010 Anjali Sachan
2025EPGP018 Atul Patel
2025EPGP021 Deva Sai Chandan
2025EPGP031 Himanshu Mittal
2025EPGP032 Hrithik Verma

Submitted To:
Prof. Punyashlok Dwibedy

Date of Submission:
September 7, 2025
Abstract

India is at a very critical juncture in its search for sustainable transportation. Electric vehicles (EVs) are
more than just a change in technology from internal combustion engines (ICEs). They are a shift in the
whole system that brings together automobiles, charging infrastructure, financing models, and energy
grids into one ecosystem. This paper explores the ways in which the merger of government policies
and strategic market reform can hasten the adoption of electric vehicles (EVs) in India. Using ideas
from Innovation and Technology Strategy, such as disruptive innovation, S-curves, appropriability, and
the effects of government centralization and decentralization, we look at how India's EV ecosystem is
changing right now. Case studies of Tata Motors, Ola Electric, and Sun Mobility demonstrate how
Indian companies are overcoming ecosystem difficulties by creating and managing essential
complementary assets. Insights from China and Europe reveal different ways to lead policy and
innovation. We contend that India needs to carefully handle the shift from a policy-push imitation
stage, which is marked by centralized incentives, to a market-pull innovation stage that encourages
affordability, localization, and coordination throughout the entire ecosystem. There are practical
implications for managers, policymakers, and investors that show how important strategic
collaborations, business model innovation, and establishing dynamic capabilities are for the future of
India's EV industry.

Introduction

In the 21st century, mobility has become a major cause of environmental stress and a major factor in
economic growth. India as the world's third-largest car market, is dealing with two big problems at the
same time: becoming more reliant on oil imports and releasing more environmental gases. In this
context, switching to electric vehicles (EVs) is not only a technological choice, but also a way to make
big changes in strategy, the economy, and the environment.

Electric vehicles (EVs) are more than just battery-powered cars, they are part of an ecosystem of new
ideas. This ecosystem brings together car design, charging infrastructure, battery technology,
financing options, links to renewable energy sources, and digital connectivity. The course "Innovation
and Technology Strategy" calls this a "technological discontinuity." Unlike incremental improvements
to ICE automobiles, switching to EVs demands a big change in the system. James Utterback's research
on the photography business shows that real market change happens when a company makes a whole
system, including a camera, film, and processing, instead of simply one product. Similarly, the people
who can make the car, the "fuel" (charging/swapping), and the service network work together to
create a smooth experience for customers will be the ones who succeed in the EV market. For India's
existing car companies, this is a huge problem because their old skills in mechanical engineering and
supply chain management may not be enough to keep them in business.

The government's involvement has been very important in making this change happen. India's
regulatory framework shows a strong central push to get the market going, from the Faster Adoption
and Manufacturing of Electric Vehicles (FAME-II) program to the Production Linked Incentive (PLI)
scheme for advanced chemical cell batteries. But, as the framework on the Government's Dilemma
shows, finding a balance is key to sustaining innovation. Central authorities can effectively stimulate
imitation and initial investment by addressing coordination shortcomings, but sustained innovation
flourishes through decentralized experimentation and market-driven solutions. In India, we see this
happening, where central incentives are supported by a variety of state-level initiatives.

Comparative perspectives reinforce this point. China quickly became the world's leader in EV adoption
because of its highly controlled, subsidy-driven model. Europe, on the other hand, relied on strict rules
about emissions and strong regional policy alignment to create demand in the market. India is in a
unique situation where both government and state policy need to work together to get past big
problems including high initial costs, a lack of charging infrastructure, and strong consumer reluctance.

This article posits that India's electric vehicle transition is on the verge of entering its S-curve adoption
phase. Early experiments and government incentives have made it possible for companies to enter
the market, but to reach mass-market scale, prices need to come down, ecosystems need to work
together, and customers need to be willing to adopt the new products. As David Teece's concept on
appropriability says, the problem is to capture value. It's not always the companies with the best
technology that will make money, it's the ones that control the important charging networks, battery
platforms, finance channels, and software stacks that make the technology useful and valuable are all
examples of complementary assets.

We use case studies of Tata Motors, Ola Electric, and Sun Mobility to show how companies are dealing
with the problems of disruptive innovation and value capture in this new but quickly changing field.
This study seeks to enhance both scholarly discourse and practical usefulness by merging policy
research with market strategy insights. The EV ecosystem gives managers a chance to rethink how
they do business and find new ways to make money. For policymakers, it emphasizes the necessity to
transition from subsidizing adoption to facilitating systemic innovation, akin to the effective PPP
approach exemplified by the Rewa Solar project. It shows investors that they should think of electric
vehicles as a long-term ecosystem play instead of a short-term product opportunity.

The remainder of this paper is structured as follows: The first part uses ideas from innovation and
technology strategy to start the conversation. The second segment looks at how India's policies are
changing by looking at centralization and decentralization. The final portion looks at ways to change
the market using case studies, with a focus on how companies build and manage complementary
assets. Next, we'll look at what the world's top EV companies have to say about India, and then we'll
close with some practical advice and strategic suggestions for how to shape India's future in terms of
transportation.

Electric Vehicle Ecosystem Innovation in India

A. Theoretical Foundations: Concepts of Innovation and Technology Strategy

To comprehend the intricacies of India's transition to electric vehicles, it is essential to anchor our
study in fundamental principles of innovation and technological strategy. These frameworks give us
the means to look at how technology, businesses, and the government all play a part in this big change.

1. Disruptive Innovation and Incumbent Responses

Clayton Christensen's theory of disruptive innovation discusses how new companies might take over
established ones by inventing technologies that are easier to use and cheaper that first appeal to
specialized markets before becoming popular. EVs have the usual disruptive potential in India. Electric
automobiles were expensive at first and were aimed at purchasers who cared about the environment.
But the real change is happening at the lower end of the market with electric two- and three-wheelers.
Even though EVs cost more up front, they are a good economic alternative for fleet operators and
delivery services since they have a reduced total cost of ownership (TCO). This disruption is now
spreading to higher-end personal mobility.

This puts companies like Maruti Suzuki and Hyundai in a tough spot. As shown by Big Pharma's reaction
to biotechnology, established companies can be early movers or late movers. Late movers sometimes
must spend more to get the skills they need, while early movers accumulate expertise and market
position over time, which leads to better performance.

Tata Motors has become an early-mover incumbent in the passenger EV industry, with more than 70%
of the market share. Other traditional automakers, on the other hand, have taken a "watch and wait"
approach, which could make them obsolete if the market changes quicker than they can keep up.
Newcomers like Ola Electric is a pure-play disruptor that doesn't have to deal with old ICE assets and
can construct a new ecosystem from scratch.

2. The Abernathy-Utterback Model and S-Curves

When people start using new technology, it usually follows an S-curve: a sluggish start (introduction),
a fast take off (growth) and then a stop (maturity). India's EV ecosystem is now going through the
steep take-off phase of this curve. Key performance parameters, such battery energy density, charging
speeds, and vehicle range, are becoming better quickly, while costs are going down. This technical
momentum is what moves a market from early adopters to the early majority.

The Abernathy-Utterback model elucidates this evolution by delineating a transition from the fluid
phase, which is marked by radical product innovation and a lot of uncertainty, the transitional period,
which is when a dominating design appears, and the specific phase, which is when the focus is on
incremental process innovation and cost efficiency. India's EV market is still in the process of changing.
There are many different types of batteries (NMC vs. LFP), charging standards (CCS vs. CHAdeMO),
and business models (ownership vs. swapping) that are competing. But dominant designs are starting
to show up, and companies like Ola Electric are already spending a lot of money on process innovation
with their Gigafactory. This shows that they are focusing on making things bigger and cheaper, which
will be very important in the next phase.

3. Appropriability and Complementary Assets

Even with a better product, you can't always make money from innovation. According to David Teece's
important theory, the ability to capture wealth (appropriability) depends on how strong the
intellectual property is (the "appropriability regime") and, most importantly, how well you control
complementary assets. These are the things you need to successfully sell an innovation, like the ability
to make things, the ability to get them to customers, the ability to provide services, a good brand
reputation, and access to capital.

In the EV world, complementing assets are quite important. The car is simply one part of the jigsaw.
The most important complementary assets are:

• Battery Supply Chain: Make sure you can get to cells and make battery packs in your area.
• Charging Infrastructure: A network of public and private chargers that is dense, reliable, and
easy to get to.
• Financing Solutions: New ideas like battery leasing help lower the exorbitant price of buying
a car.
• Digital Software Platforms: For managing vehicles, getting the most out of charging, and
making the user experience better.
• After-Sales Service: A network that can fix high-voltage electric powertrains.

Companies are using diverse methods to manage these assets. Tata Motors uses its current network
of dealerships and service centers to develop the charging infrastructure with Tata Power. Ola Electric
is trying to vertically integrate by making its own software, manufacturing, and maybe even its own
charging network. Sun Mobility has chosen a focused strategy, focusing solely on building a network
of battery-swapping stations as a major complementary asset for the 2/3-wheeler category. The
companies that can best put together and manage this complicated web of assets will be the ones
that triumph in India's EV industry.

4. The Government's dilemma: Centralization vs. Decentralization

The function of government in promoting technological advancement is dynamic. Mahmood and Rufin
contend in "Government's Dilemma" that a transformation in policy strategy is essential as a country
transition from imitation to innovation.

• Imitation Stage: A centralized government function is typically successful when a country is

far behind in technology. The government can speed up the use and adaptation of current
technologies by directing resources, coordinating investments, and fixing market failures.
India's FAME and PLI programs are great examples of this centralized, policy-push strategy.
They are meant to make first investments less risky and build a basic market.
• Stage of Innovation: As a country gets closer to the frontier, it needs to take a decentralized
strategy. Real innovation comes from trying new things, sharing knowledge within networks,
and having different people compete. Too much centralized control can stop this creativity.
At this point, the government's role should change from "leading the market" to "facilitating
the market." This means making open platforms possible, making sure interoperability
standards are in place, and encouraging public-private partnerships that let local solutions
come up.

India's electric vehicle (EV) journey is at this point of change. The central government has successfully
planted the seeds of the ecology. The next stage of growth hinges on giving state governments, cities,
and private businesses the freedom to come up with new ideas and adapt them to fit different local
needs, from delivering packages to people in cities to helping people move around in rural areas. The
Rewa Solar project is a great example of how to do this in the energy sector. It uses a well-structured
PPP model to lower risks, get private investment, and set record-low tariffs. A comparable method is
needed to make charging infrastructure bigger.

B. Policy Integration in India's Electric Vehicle Ecosystem

India's approach to EV adoption is an interesting example of multi-layered government, combining a

strong central vision with new energy at the state level. This hybrid model shows how the country is
structured as a federation and how our understanding of what it takes to develop a new industrial
ecosystem is changing.

1. The Foundational Push: Central Government Interventions

The Government of India has been the main force behind the shift to electric vehicles, adopting several
initiatives to boost both supply and demand. This centralized method was very important during the
early, high-risk "imitation" phase of market growth.

FAME-II Scheme (Faster Adoption and Manufacturing of Electric Vehicles): Launched in 2019 with a
budget of ₹10,000 crore, FAME-II is the main initiative that encourages people to buy electric vehicles.
It gives consumers direct subsidies when they buy electric two-, three-, and four-wheelers, and it also
helps with fleet electrification and public charging infrastructure. The program also wants to grow a
domestic industrial base by tying incentives to localization criteria.
The government started two Production Linked Incentive (PLI) programs for Advanced Chemistry Cells
(ACC) and Automobiles. This is because the battery makes up 40–50% of the cost of an electric vehicle
(EV). The ₹18,100 crore ACC PLI project intends to create 50 GWh of battery manufacturing capacity
in India, which will directly address India's significant reliance on imported cells. The ₹25,938 crore
Auto PLI encourages the making of electric automobiles and hydrogen fuel cell vehicles. The goal of
these supply-side interventions is to build the complementary qualities of making things and having a
strong supply chain.

Tax breaks and other incentives: The Goods and Services Tax (GST) on EVs has been cut from 12% to
5%, while the GST on chargers has been cut from 18% to 5%. Additionally, consumers can get a tax
break on the interest they pay on loans to acquire EVs. Green license plates have been added to give
people non-monetary perks like better parking and free tolls.

2. Policies at the State Level: The Decentralized Laboratories of Innovation

Central policies set the rules for the whole country, but state governments have become important
drivers of adoption by making incentives fit their own needs. This shows that we are moving toward
the decentralization that is needed for the innovation stage.

• Delhi EV Policy (2020): This policy is widely seen as the most progressive. It offers big
incentives for buying electric vehicles and waives road taxes, with a strong focus on
electrifying two-wheelers and delivery fleets that go the last mile. It also includes
groundbreaking steps like requiring new buildings to have charging stations and encouraging
battery swapping.
• Karnataka EV & ES Policy (2017): Karnataka was one of the first states to declare a full policy.
It has concentrated on making the state a center for research and development (R&D) and
manufacturing, using its assets as India's technology capital.
• Maharashtra EV Policy (2021): This policy established tough goals, such as getting 10% of new
car registrations to be EVs by 2025. It did this by offering large incentives for consumers and
planning for a lot of public charging stations.
• Tamil Nadu EV Policy (2019): Tamil Nadu is a major hub for the auto industry, hence it gives
attractive investment incentives to make it a great place for EV manufacture. This has led to
large investments from companies as Ola Electric.

State Policy
Delhi Maharashtra Karnataka Tamil Nadu
Feature

Demand
Primary Aggressive R&D and Manufacturing
Aggregation &
Focus Adoption Targets Manufacturing Hub
Infra

High purchase Demand Investment

Key Capital subsidies
subsidies for incentives + subsidies, Tax
Incentive for manufacturers
2W/3W Scrappage Bonus breaks

Charging
Yes, for new Yes, density
Infra Planned Planned
constructions targets
Mandate

Battery Actively
Encouraged Mentioned Mentioned
Swapping promoted
Table 1: A comparison of important state EV policies that show decentralized approaches.

3. Partnerships between the PPPs and coordination between institutions

Strong cooperation is needed to close the gap between what policies say they will do and what
happens.

The government's policy think tank, NITI Aayog, has been an important ecosystem orchestrator,
helping ministries, states, and industry stakeholders talk to each other.

Also, PPPs are very important for expanding the charging network.

Energy Efficiency Services Limited (EESL), a government-run business, is working with city
governments and private corporations like Tata Power and Fortum to set up public charging stations.
This strategy is like the Rewa Solar project, which was a success because a powerful government-
backed group (RUMSL) developed a framework that was safe and bankable, which "unleashed" private
innovation and investment. To build charging highways and urban charging plazas, we need to use a
structured PPP approach.

4. Challenges in Policy Integration

Even though things are getting better, there are still some problems:

• Implementation is fragmented: Because state rules are so different, it can be hard for
consumers and national manufacturers to figure out what's going on.
• Dependence on subsidies and uncertainty: The ecosystem still depends a lot on subsidies.
The sudden drop in FAME-II subsidies in 2023 created a big drop in the market in the short
term. This showed how weak demand is and how important it is to have a clear, long-term
policy roadmap.
• Infrastructure-Adoption Lag: There is a classic "chicken-and-egg" dilemma between selling
cars and building charging stations. To ease range anxiety, policy needs to make sure that
infrastructure deployment stays ahead of car uptake.

In conclusion, India's policy framework is changing in the right way, following the path laid forth by
the Government's Dilemma: moving from a strong central push to allowing decentralized innovation.
The next important step is to make sure that central and state initiatives work well together and to
make policies that are stable and long-lasting to develop trust in investors and consumers.

C. Market Transformation Strategy: Building the Ecosystem

Policy sets the stage, but companies must come up with new ideas, compete, and finally convince
customers to switch. In India, changing the market depends on getting over three main obstacles:
cost, infrastructure, and customer reluctance. This can be done through smart changes to business
structures and technology.

1. Main Barriers to Adoption

• High Upfront Cost: Even with subsidies, the price of an EV is still much greater than that of an
ICE vehicle, which is a big problem in a market that is sensitive to price.
 • Not enough charging stations: There aren't enough public charging stations, especially on
highways and in smaller cities, which makes people worry about "range anxiety," or the fear
of getting stuck with a dead battery.
• People are still worried about battery life, degradation, resale value, and how hard it is to
charge. There is a big gap in information that must be filled via education and clear
communication.

2. Strategic Tools for Change

Companies are utilizing several strategic levers to break down these barriers, with an emphasis on
holding complementary assets to offer a better value offering.

• Innovative Financing approaches: To get around the problem of high upfront costs,
companies are trying out approaches that divide the cost of the battery from the cost of the
car. Battery leasing, in which the buyer pays a monthly cost for the battery but owns the
automobile, decreases the initial purchase price by a lot.
• Battery Swapping: This concept, which businesses like Sun Mobility were the first to use, lets
you "refuel" in less than two minutes, which solves both range anxiety and long charging
times. It works especially well for business fleets that use a lot of them, like e-rickshaws and
delivery bikes, because downtime means lost revenue. When you swap, the battery goes from
being a product to a service (Battery-as-a-Service).
• Strategic Partnerships: No one company can construct the whole ecosystem by itself. Working
together is important. To make things easier for customers, car companies are working with
energy companies (like Tata Motors and Tata Power), real estate developers (to put charging
stations in homes and businesses), and digital platforms.

Changing from imported parts to a domestic supply chain is necessary to save prices and geopolitical
concerns. The PLI scheme makes it easier for businesses to do what they need to do, but they still
need to actively invest in moving the production of batteries, electric motors, power electronics, and
other important parts to India.

3. Ecosystem Strategy Case Studies

The strategic decisions of three major Indian firms demonstrate the various approaches to value
capture within the EV ecosystem.

Case Study 1: Tata Motors - The First Mover That Stays

Tata Motors is an example of a successful response by an established company to a new technology.

Tata put a big bet on the passenger EV market early on with the Nexon EV. It used its existing skills in
making cars, doing research and development (from its JLR acquisition), and having a large network
of dealerships. Its plan is a tutorial in how to put together assets that work well together:

• Product: The Nexon EV immediately became the most popular design in the new market
because it had a great mix of pricing, performance, and features.
• Infrastructure: By working with Tata Power, it is developing one of India's biggest public
charging networks, which directly addresses the infrastructure gap and makes its customers
less worried about buying a car.
• Ecosystem Integration: The firm has established "Tata uniEVerse," an ecosystem that
connects other Tata group companies to offer financing (Tata Capital), insurance, and roadside
 assistance, making it easy for potential customers to obtain everything they need in one place.
Using group-wide assets in this way gives you a big edge over your competitors.

Case Study 2: Ola Electric—The Aggressive Disruptor

Ola Electric's foray into the electric two-wheeler business is a risky move to transform the whole
ecosystem, like how Netflix wanted to overhaul the whole home video market, not simply send DVDs
by mail. It uses a direct-to-consumer model, vertical integration, and scale as its main strategies:

Ola is creating a "Futurefactory" that will be able to make 10 million scooters a year. This is a big bet
on process innovation and economies of scale to lower costs.

• Software and Connectivity: Ola is marketing its scooters as smart, connected gadgets based
on its background in mobility platforms. This sets them apart from other scooters by offering
a unique software experience.
• Ecosystem Control: Ola wants to control all the important complementary assets by
controlling manufacturing, software, and sales, and by constructing its own "Hypercharger"
network. This will reduce dependency and maximize value. But this technique that requires a
lot of money to work has big risks when it comes to product quality, service, and infrastructure
rollout.

Case Study 3: Sun Mobility as the Specialized Enabler

Sun Mobility has picked a concentrated strategy by working on one of the ecosystem's main problems:
the time and cost of refueling and battery replacement for commercial two- and three-wheelers. Its
business concept doesn't involve selling cars; instead, it provides energy-as-a-service through a
network of battery-swapping stations.

• Complementary Asset Focus: Sun Mobility is establishing its own network of swapping
stations and smart batteries, which is a key complementary asset that it sells to many car
manufacturers and fleet operators.
• Business Model Innovation: Sun Mobility separates the battery from the vehicle, which
lowers the initial cost for fleet owners and lets them pay for energy as they use it. This changes
a capital expense (buying a battery) into an operational expense (the charge for changing),
which is very appealing to business users.
• Targeted Disruption: This method is a low-end disruption that focuses on the group where
TCO and uptime are most important. It doesn't compete directly with vehicle OEMs, instead,
it makes Sun Mobility an important partner in the ecosystem.

These cases show that there isn't one optimum approach to compete. A company needs to be able to
find and control the most important complementary assets for its target market and design a business
model that successfully captures the value it creates to be successful.

D. Insights from Global Leaders on Comparisons

India's EV journey is not an isolated phenomenon. The policy decisions and methods of world leaders
like China, Europe, and the United States may teach us a lot about how to move forward, both in terms
of what to do and what not to do.

1. China: The Strength of a Centralized Policy Push

China's rise to become the world's biggest electric vehicle market shows how effective a long-term,
government-led industrial plan can be. Its method was a perfect illustration of a centralized
government role that tried to get ahead of old technologies.

Strategy: Starting in the early 2010s, China started a huge program of incentives for buying electric
vehicles, strict production rules for carmakers, and huge government spending on charging stations
and battery production. This made both supply and demand happen at the same time.

The legislative push helped Chinese companies like BYD and NIO grow, brought in foreign investment
(including Tesla's Shanghai Gigafactory), and made China the leader in the global battery supply chain.

India should learn from China's success: it shows how important it is to have a long-term plan and to
invest in complementary assets together (particularly battery production). But India's democratic and
federal system makes it hard to copy a model like this one that relies heavily on subsidies from the
top down. India's PLI program for batteries is a small step in this direction.

2. Europe: The Power of Regulatory Orders

Less direct subsidies and more strict environmental rules have led to the adoption of electric vehicles
in Europe. This shows that a strong regulatory framework can build a market.

The European Union has set stricter CO2 emission criteria for car companies over time, with big fines
for not following them. This meant that selling EVs was no longer just a choice; it was now a need for
survival. Many areas plan to stop selling new ICE vehicles by 2035, which sends a clear and permanent
policy signal.

Result: This regulatory "stick" made established car companies like Volkswagen, BMW, and Mercedes-
Benz speed up their investments in electric vehicles by a huge amount. It also made it easier for
innovators like Tesla to get a solid presence in the market.

India should learn that a clear, long-term set of rules, like the Corporate Average Fuel Economy (CAFE)
rules, may be a strong force for innovation. India may find it politically difficult to impose a complete
ban on internal combustion engines in the foreseeable future, but gradually tighter emission
requirements can force existing companies to make the switch more quickly.

3. The United States: A Mix of Business and Policy

In the past, the U.S. market was a mix of entrepreneurial leadership and fragmented, state-level
legislation. It has only recently benefited from a greater federal push.

Strategy: For a long time, Tesla's disruptive innovation and California's Zero-Emission Vehicle (ZEV)
requirement, which obliged automakers to sell a specific percentage of EVs in the state, were the main
reasons why people in the U.S. bought EVs. Federal policy was less stable until the Inflation Reduction
Act (IRA) of 2022, which gave big tax breaks for buying electric vehicles and encouraged battery
development in the U.S.

The U.S. has a strong innovation ecosystem with many EV startups (Tesla, Rivian, Lucid), but the rate
of adoption has been slower than in China and some parts of Europe because of inconsistent
regulation and a large area.
The U.S. experience shows how powerful entrepreneurial disruptors can be in changing markets. This
is a lesson for India. There aren't as many big startups in India, but companies like Ola Electric show
that there is room for them. It also shows that strong state-level regulations, like those in California,
can make "lead markets" that drag the rest of the country along.

Key Policy
Model Primary Driver Market Outcome Relevance for India
Tool

Rapid Scale-Up, Emphasizes need for

Government Subsidies &
China Supply Chain battery manufacturing
Push Mandates
Dominance (PLI).

Emission Shows power of a clear

Incumbent
Europe Regulatory Push Standards & regulatory roadmap
Transformation
ICE Bans (CAFE norms).

Tax Credits & Highlight’s role of

Entrepreneurial Innovation-Led,
U.S. State disruptors and state-
Pull Uneven Adoption
Mandates level leadership.

Table 2: Different Models on How the EV Market Will Change.

The Hybrid Path of India

India is making its own way by taking parts from all three models and putting them together. It gives
out Chinese-style subsidies (FAME), is steadily making European-style rules stricter (CAFE
requirements), and wants to encourage American-style entrepreneurship (Startup India). India has
certain unique problems, such as being very price-sensitive, having a dominant two-wheeler market,
and not having enough infrastructure. This mixed approach is needed. India's main goal should be to
learn from these global leaders while making sure that its strategies work in its own environment. It
should also focus on making things affordable and developing a strong, localized ecosystem.

What EV ecosystem innovation means for India in real life

The strategic development of India's mobility sector has major effects on its most important players.
To go from theory to practice, managers who are running their businesses, politicians who are
planning the future, and investors who are paying for the change all need useful information.

For Managers

Strategic partnerships are necessary since no one company can control the EV ecosystem on its own.
Teece's thesis on complementary assets shows that networks create and collect value. Automakers,
energy businesses, financial startups, and digital platforms need to work together in deep, strategic
ways. For example, Tata Motors and Tata Power work together to offer a complete product-
infrastructure solution that eases customer worries and gives them a competitive edge. Managers
should map out the whole customer journey and find holes in the ecosystem. Then they should
proactively form partnerships to fix any problems that come up, whether it's with financing, charging,
or after-sales care.

Business Model Innovation Is Important: In a market with large upfront costs and changing
technologies, traditional product-sales models don't work. Managers need to switch to service-based,
recurring-revenue models including battery leasing, car subscriptions, and energy-as-a-service (EaaS).
Sun Mobility's Battery-as-a-Service model is a great example of how to make electric vehicles cheap
for businesses. Actionable Insight: Create flexible ownership arrangements that make it easier for
people to buy things. Look into ways to make money from data collected by connected cars. These
might include services like predictive maintenance, optimizing charging, and insurance depending on
how you drive.

The EV is really a software-defined product, so be sure you can adapt to the future. It's no longer going
to be about being good at mechanical engineering; it's going to be about being good at software
integration, data analytics, and battery management systems. It is also important to be able to swiftly
learn, adapt, and reorganize resources, which is a key part of dynamic capabilities. Actionable Insight:
Put a lot of money into developing your own software skills. Use data analytics to learn how users act
and improve the performance of vehicles and the way they charge. Get ready for a future when over-
the-air (OTA) software updates are a big part of what makes your product stand out.

For Policymakers

• Balance Centralization with Local Experimentation: According to the Government's Dilemma

framework, India's adoption of electric vehicles will speed up when central plans are
supported with new ideas at the state level. Policymakers need to set up a system that lets
states act as "laboratories of democracy," trying out policies that are best for them (for
example, giving incentives for battery swapping in densely populated areas or electrifying
tourist fleets in eco-sensitive areas). At the same time, they need to make sure that all states
follow the same important standards for interoperability. Actionable Insight: Set up a national
platform where states can discuss what works and what doesn't. Change the job of central
agencies from only giving out subsidies to giving technical help and establishing standardized,
bankable PPP models for charging infrastructure, based on the success of the Rewa Solar
project.
• Charging Infrastructure Should Be Seen as a Public Good: Charging infrastructure is an
important public good that is not being built because private investors are unsure how much
it will be used in the first few years. The government needs to treat charging centers and
highway corridors like other important public infrastructure, including roads and phone lines.
Use public money and well-planned public-private partnerships (PPPs) to make private
investment in charging infrastructure less risky. Make it a requirement for all new residential
and commercial real estate developments to be ready for charging. Use publicly owned land
(such as railway stations and post offices) to put up charging plazas.
• Make sure that policies stay the same and that there is a long-term vision. Sudden changes
to subsidy programs, such with FAME-II, make consumers and investors less confident, which
throws off the market's S-curve trajectory. Policymakers need to give a clear and consistent
plan for the next ten years, showing that the shift from direct subsidies to regulatory nudges
like higher emission ceilings and fleet electrification mandates would happen slowly and in a
predictable way. Actionable Insight: Make a multi-year policy calendar that shows how
subsidies will be cut over time and how regulatory requirements will be raised over time. This
provides the industry time to make plans for investments, move supply chains closer to home,
and lower costs.

For Investors

Don't just think of EVs as vehicles; think of them as ecosystem bets. The biggest value will be created
across the whole ecosystem. The chance goes beyond just cars and scooters. It also includes
companies that run charging stations, make batteries, recycle batteries, provide software-as-a-service
(SaaS) platforms for fleet management, and lend money to businesses that need it. Actionable Insight:
To establish a strong portfolio that captures growth across the ecosystem and lowers the risk of
investing in just one product, spread your assets across several related areas.

Focus on Scalable and Capital-Efficient Models: In India's market, which is sensitive to price, business
models that lower costs for both consumers and enterprises will grow the fastest. Battery swapping,
subscription-based ownership, and fleet electrification are all great ways to grow your business.
Actionable Insight: Search for startups and businesses that have asset-light or very capital-efficient
business models. Investing in a battery-swapping network like Sun Mobility, for instance, gives you
access to the fast-growing 2/3-wheeler sector without having to worry about making cars.

Put long-term value creation ahead of short-term sales: The Indian electric vehicle market is still on
the steep part of the S-curve; early adoption is still low, but the momentum is clear. Sales numbers
for the short term can change a lot and depend on subsidies.

Take Action: When you invest, think long-term and focus on companies that are establishing strong
complementary assets, generating unique technology skills, and making customer relationships that
last. These are the building blocks of a long-term competitive edge.

Conclusion: Moving India toward a sustainable future for electric vehicles

India's road toward electric vehicles shows that there is a lot of potential and a lot of work to be done.
The change is not only about switching from internal combustion engines to battery-powered ones. It
is a systemic change that affects infrastructure, supply networks, finance structures, and how people
act as consumers. When you look at the EV ecosystem from the perspective of innovation and
technology strategy, it is a typical example of disruptive innovation meeting market creation driven
by policy.

Our analysis shows that India is at a very important moment in the S-curve adoption phase. Centralized
policies like FAME-II and PLI, which were pushed by companies like Tata Motors, Ola Electric, and Sun
Mobility, have helped to build early momentum. But for electric vehicles to become popular in India,
the country needs to make a big change from a policy-push imitation stage to a market-pull innovation
stage. This change requires a constant commitment on making things more affordable, building up
the network of complementary assets like charging stations and battery supplies, and building up deep
consumer confidence.

Comparing India to other countries shows how unique its hybrid approach is. India must find a balance
between central coordination and decentralized, state-led experimentation. This is different from
China's command-and-control model. India's shift must be based on affordability and inclusivity, while
Europe relies heavily on regulatory obligations. Unlike in the U.S., where entrepreneurs have always
been in charge, India's electric vehicle (EV) sector needs both businesses to take the lead and the
government to help them. This hybrid road is hard, but it gives you the freedom to support local ideas
that are made for India's unique market structure, especially its two- and three-wheeler sectors, which
are the biggest.

From a strategic point of view, the way forward is apparent. Managers need to stop selling things and
start providing integrated ecosystem services. Policymakers need to make sure that things stay stable,
put infrastructure investment first, and give local innovators more influence. Investors need to look at
the whole picture and see that value isn't only in the car, but also in the network that supports it. The
clear lesson from innovation theory is that complementary assets, dynamic capacities, and policy-
market alignment will decide who leads in the EV future. India's automotive industry and policymakers
need to make sure that they close the gap between old skills and new opportunities in electrified,
connected, and shared mobility. This is like how Kodak failed when it didn't adapt to the change to
digital imaging.

In the end, India's future with electric vehicles is more than just a way to help the environment; it's
also a chance for the next generation of workers to get jobs. India can become a global leader in
sustainable mobility by localizing supply chains, encouraging technological innovation, and increasing
customer trust. The change is hard, but the benefits, economic stability, environmental sustainability,
and technology leadership, are life changing. In this new era of mobility, the people who will lead will
be those who see the EV ecosystem as a place for fresh ideas, teamwork, and big changes in the way
things work.

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