India's next EV policy phase targets rare earths, cyber security and overseas plants

India's next round of electric-vehicle policy will reach past the subsidy cheque. According to Autocar Professional, the government is looking at rare-earth supply chokepoints, cybersecurity standards for connected vehicles, and support for Indian firms setting up plants overseas.

The report, published on 27 October 2026, frames this as the next phase of the EV push. The first phase leaned on demand-side incentives. This one leans on the supply chain and the software inside the car.

Why rare earths matter

Electric motors and their magnets depend on rare-earth elements. China controls most of the refining and processing of these materials, and that concentration has worried planners in Delhi for a while. Any disruption hits motor production, and motor production hits vehicle output.

The policy thinking, as reported, is to reduce that exposure. Details on how, domestic refining capacity, recycling, sourcing deals with partner countries, were not spelled out in the report.

Software on the agenda

Connected cars are computers on wheels, and the report says cybersecurity is now part of the policy conversation. Modern EVs run on over-the-air updates, telematics and app-linked controls. Each of those is a door. Standards for vehicle software, data handling and remote access would sit alongside the existing safety and emissions rules.

That's a shift in how the government sees the sector. An EV isn't only a cleaner engine. It's a networked device that needs its own rulebook.

Plants abroad

The third strand is overseas manufacturing. Indian automakers and component makers have been eyeing plants in markets where tariffs, logistics or local-content rules favour a physical presence. The report says the policy phase will look at supporting such overseas plants.

What form that support takes, credit lines, diplomatic push, bilateral arrangements, isn't clear from the report. But the direction is: India wants its EV industry to compete globally, not just at home.

What stays, what changes

Subsidies aren't disappearing. The report describes the new measures as additions to the existing framework, not a replacement. Demand incentives, charging infrastructure and localisation rules remain part of the picture.

The emphasis is what's moving. From pushing buyers toward electric cars to securing the materials, code and factories that make those cars possible.

The details will matter. Rare-earth processing is capital-heavy and slow to build. Cybersecurity standards need enforcement teeth. Overseas plants need financing that Indian firms can actually access. Each of those is a long haul, and the report doesn't put timelines on any of them.

For now, the signal is clear enough. India's EV policy is growing up, and the next phase will be judged on supply chains and software as much as on showroom numbers.