Why India’s Robotics Startups Can Surpass EV Startups

India’s startup ecosystem is witnessing remarkable growth across several technology sectors. While electric vehicles (EVs) have captured significant attention, robotics startups are quietly positioning themselves for potentially greater success. This analysis explores the structural, economic, and strategic advantages that may allow India’s robotics startups to outpace their EV counterparts in the coming years.

Supply Chain Resilience: A Critical Advantage

Robotics’ Reduced Import Dependency

Robotics startups enjoy significantly lower import dependency compared to EV manufacturers. While certain high-end components may still need importing, many parts can be sourced locally or manufactured in-house.

“The structural cost advantages enabling more ‘reps’ for perfecting technologies at fraction of Western costs… extends beyond land costs. Engineering talent, fabrication, components, and operational expenses all benefit from India’s cost structure,” notes an analysis by Foundamental1.

EV’s Critical Mineral Vulnerability

In stark contrast, EVs face severe supply chain constraints:

“India remains largely dependent on imports for these minerals and their compounds with 100% dependency for lithium, cobalt and nickel minerals,” according to a 2024 report by the Institute for Energy Economics and Financial Analysis (IEEFA)2.

This dependency creates fundamental vulnerabilities for EV startups, as battery cells—the heart of electric vehicles—remain largely beyond local control. According to Procurabl3, “Import dependency for key components due to resource constraints hinder scaling local production, making the chain vulnerable to global disruptions and cost increases.”

Infrastructure Requirements: Built-in vs. Build-out

Robotics’ Ready Environment

Robotics startups can deploy their solutions within existing industrial infrastructure, requiring minimal external dependencies. A factory adopting robotics needs internal modifications but relies on existing power and transportation systems.

EV’s Massive Infrastructure Needs

For EVs to succeed at scale, India requires a nationwide charging network—a massive undertaking that remains significantly underdeveloped:

“Challenges include limited charging infrastructure, battery cell deficits (20-25%), and semiconductor chip shortfalls (40%-50%), impacting production and increasing ownership expenses,” notes Procurabl3.

This creates a chicken-and-egg problem: without adequate charging infrastructure, consumer adoption lags; without widespread adoption, investment in charging infrastructure remains risky.

Business Model Innovation & Profitability

Robotics’ Service-Based Models

One of the most compelling advantages for robotics startups is their transition from product-based to service-based business models:

“These companies now routinely achieve 50-70% gross margins and 30% operating margins even after accounting for hardware costs, maintenance, logistics and on-site setup,” reports Foundamental1.

Many robotics startups have shifted to “Machines as a Service” (MaaS) models, which:

• Reduce upfront costs for clients
• Generate predictable recurring revenue
• Enable continuous improvement through data feedback loops

EV’s Low-Margin Struggles

EV companies face fundamental profitability challenges:

“EV funding decelerated nearly 31% to $624 Mn across 43 deals in 2024… The average ticket size slipped 39% to $14.5 Mn from $23.7 Mn a year back,” according to Inc424.

This funding retreat reflects investor concerns about profitability in a market with:

• High component costs eating into margins
• Price-sensitive consumer base limiting premium pricing
• Intense competition from legacy manufacturers with established scale

Talent & Innovation Ecosystem

Robotics’ Multidisciplinary Advantage

India has a robust talent pipeline for robotics innovation:

“India has a strong talent pool from IITs, IISc, and institutions like DRDO and ISRO with hardware engineering capabilities,” observes technology analyst operator.blog5.

This talent advantage is strengthened by India’s combination of software engineering excellence (from its IT services heritage) with growing hardware capabilities.

EV’s Specialized Talent Gap

While EV startups also benefit from engineering talent, they face challenges in specialized areas like battery technology and power electronics, where global competition for talent is fierce. Much of the critical innovation in EV technology continues to happen outside India, particularly in battery chemistry and manufacturing processes.

Government Support & Policy Environment

Robotics’ Focused Support

The Indian government is increasingly recognizing robotics as a strategic sector. The Draft National Strategy on Robotics outlines comprehensive support:

“The strategy recommends innovative funding mechanisms for robotics start-ups to enable commercialisation and the development of supporting infrastructure,” according to the Ministry of Electronics and Information Technology6.

The National Robotics Mission aims to position “India as a global leader in robotics for manufacturing, agriculture, healthcare, and national security” by 2030.

EV’s Policy Complexity

While EVs receive substantial government support through programs like FAME II and the PLI scheme, they also face complex policy challenges:

“Despite these efforts, EV adoption challenges remain, including high vehicle costs, inadequate charging infrastructure and supply chain issues,” notes IBEF7.

The policy environment for EVs involves multiple stakeholders across central and state governments, creating coordination challenges and regulatory uncertainty.

Market Structure & Competition

Robotics’ Differentiated Landscape

India’s robotics startups can carve out specialized niches with less direct international competition. Companies like GreyOrange and Cynlr have successfully targeted specific industrial applications where they offer unique advantages.

“Indian robotics companies can run through more testing cycles, fail more productively, and refine their approaches with greater frequency than their Western counterparts,” observes Foundamental1.

EV’s Intense Competition

EV startups face a more challenging competitive landscape:

“The proliferation of EV startups in India has created a crowded market, making it challenging for new entrants to differentiate themselves and attract investments,” according to Inc424.

Legacy automotive manufacturers are now entering the EV space with their established brand recognition, distribution networks, and manufacturing capabilities. This squeezes the opportunity for startups:

“TVS Motor, Bajaj Auto, and Hero MotoCorp collectively increased their market share from 29% in 2023 to 40% in 2024, challenging the dominance of pure-play EV startups,” reports Autocar Professional8.

Scalability & Capital Efficiency

Robotics’ Iterative Growth

Robotics startups can scale more gradually and capital-efficiently:

“Decade-long persistence creating companies bankable enough for traditional loans… The structural cost advantages… allow Indian companies to achieve technical maturity faster and at lower capital expense than competitors in higher-cost environments,” notes Foundamental1.

This approach allows for sustainable growth without the massive capital requirements of EV manufacturing.

EV’s Capital-Intensive Scale Requirements

EV startups require enormous capital to achieve meaningful scale:

“Despite historical robust growth where EV startups accumulated over $3.7 Bn through 236 deals (2014-2024), recent rounds indicate fewer, but larger, debt-focused rounds as companies work on reducing cash burn,” according to Inc424.

This capital intensity creates funding challenges and increases risk for investors, especially in a tightening global capital environment.

Global Market Expansion Potential

Robotics’ Export Opportunities

Indian robotics startups have demonstrated global potential. Companies like GreyOrange have successfully expanded internationally, particularly in warehouse automation. This export potential is increasingly recognized:

“Creating a dedicated Robotics Startup Fund could be a game-changer for companies with strong export potential,” suggests an analysis by TechGraph9.

EV’s Export Barriers

In contrast, EV startups face significant hurdles to global expansion:

“The primary barriers include high upfront costs, limited charging infrastructure, range anxiety, and lack of standardized charging ports,” according to a comparative review of EV adoption barriers10.

Additionally, established global players and Chinese manufacturers possess significant scale advantages that make international competition difficult for Indian EV startups.

AI Integration & Technology Convergence

Robotics’ AI Advantage

Robotics startups are particularly well-positioned to leverage India’s software expertise with emerging AI capabilities:

“It’s massively benefiting from AI-driven chips & compute investments that the cloud infra players and hyperscalers are doing,” notes operator.blog5.

This convergence of AI with robotics creates opportunities for Indian startups to build unique intellectual property that combines hardware and software innovation.

EV’s More Limited AI Applications

While EVs increasingly incorporate AI for features like driver assistance, the core technology challenges remain centered on battery technology, where India has less established expertise. EV startups must compete in a domain where countries like China, South Korea, and the US have significant head starts.

Conclusion: The Path Forward

While both robotics and EV startups face challenges, the structural advantages for robotics in India are compelling. Robotics startups benefit from:

1. Greater supply chain resilience with less dependency on critical imported minerals
2. Lower infrastructure barriers to adoption
3. Higher profit margins and more flexible business models
4. Better talent alignment with India’s existing capabilities
5. More favorable competitive positioning versus global players
6. Lower capital requirements for scaling

This doesn’t mean EV startups won’t succeed in India—the market potential remains enormous, with projections showing growth from US$8.03 billion in 2023 to US$117.78 billion by 2032, according to IBEF7.

However, the path to success for robotics startups appears more direct, with fewer structural barriers and greater alignment with India’s existing advantages. As India aims to position itself as a global leader in emerging technologies, robotics represents an opportunity to leverage the country’s unique combination of software expertise, engineering talent, and manufacturing capabilities—potentially outrunning the EV sector in sustainable growth and global competitiveness.