MG Motor India collaborates with Epsilon Group to enhance EV Ecosystem in India  

MG Motor India has recently unveiled its collaboration with the Epsilon Group to enhance the electric vehicle (EV) charging infrastructure and support ecosystem development in India. This partnership involves signing a Memorandum of Understanding (MoU) with two subsidiaries of Epsilon Group—Power EV, which provides charging solutions, and LICO, which specializes in battery recycling and second-life battery applications.

This strategic alliance aims to create a comprehensive framework for advancing MG Motor India’s EV initiatives through improved charging infrastructures and effective battery lifecycle management. Power EV will supply a range of AC and DC charging systems, featuring capacities from 22kW to 120kW, complemented by sophisticated Power Panel Management Software.

This technology streamlines the operation of charging stations, enhancing both user accessibility and efficiency. As part of the collaboration, Power EV commits to deploying 1000 charging points over the next 1000 days within residential areas across India, significantly expanding the public charging network with both standard and high-capacity DC charging options.

Moreover, Power EV is set to provide tailored charging technologies for MG’s current and future EV models, aiming to elevate the overall user experience. This initiative will leverage Power EV’s advanced technology to foster the development of robust, intelligent charging solutions.

On the other hand, LICO will focus on promoting circular economy principles by advancing battery recycling and refurbishment to reclaim valuable materials such as lithium, cobalt, manganese, and nickel. This effort supports sustainability and aligns with global environmental standards and regulations concerning battery disposal. MG Motor India and LICO will collaborate to enhance strategies for battery reuse, particularly in renewable energy storage applications, while ensuring adherence to Extended Producer Responsibility (EPR) norms and achieving high recycling efficiency.

Gaurav Gupta, Chief Growth Officer at MG Motor India, emphasized the company’s commitment to sustainability and the role of this partnership in fostering a comprehensive EV ecosystem that supports both innovative charging solutions and sustainable battery usage practices.

Vikram Handa, Managing Director of the Epsilon Group, highlighted the significance of this partnership in accelerating the adoption of green mobility solutions and circular economy practices. Benny Parihar, CEO of Power EV, added that this collaboration aims to redefine the EV charging infrastructure, making sustainable electric mobility a practical option for more consumers.

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What: India’s finance ministry has directed public sector banks, insurers, and financial institutions to reduce operational spending and accelerate adoption of electric vehicles across official fleets. The move is part of a wider austerity push linked to rising global economic uncertainty and fuel-related risks. The Number: The directive impacts major public institutions including State Bank of India, Bank of Baroda, and Life Insurance Corporation of India, covering millions of employees and thousands of operational vehicles nationwide. The Impact: The policy signals a new phase of institutional fleet electrification in India, where EV adoption is now being tied directly to fiscal discipline, fuel import management, and public-sector operational efficiency. The Core News India’s finance ministry has formally instructed state-run financial institutions to implement strict expenditure controls while simultaneously accelerating EV adoption for official transport operations. The directive from the Department of Financial Services asks organisations to replace petrol and diesel vehicles used at head offices and branch operations with electric vehicles “as far as possible.” The order comes amid growing concern over the economic impact of prolonged geopolitical instability in West Asia, which threatens to increase crude oil prices, widen India’s import bill, and pressure the rupee. Alongside the EV transition mandate, the government has also pushed virtual meetings, reduced foreign travel, and tighter administrative spending controls across public-sector institutions. For India’s EV ecosystem, the directive is strategically important because it expands demand visibility beyond state transport undertakings and government departments into the financial sector itself. PSU banks and insurers operate one of the country’s largest distributed office networks, including regional offices, branch fleets, field operations, and administrative mobility services. Even a phased transition could create a sizeable procurement pipeline for electric passenger vehicles, charging infrastructure providers, and fleet management companies. Breaking Down the Update • The Department of Financial Services issued the austerity and EV adoption directive to PSU banks, insurers, and financial institutions. • The government wants petrol and diesel vehicles used in official operations to be progressively replaced by EVs wherever operationally feasible. • The policy push follows Prime Minister Narendra Modi’s appeal for fuel conservation and controlled discretionary spending amid global energy uncertainty. • The directive also mandates greater use of video conferencing to reduce travel-related operational expenditure. • The move could indirectly support domestic EV OEMs, leasing firms, and charging infrastructure operators through institutional procurement demand. • The banking and insurance sector may emerge as a new enterprise fleet electrification category in India’s EV transition roadmap. How PSU banks EV adoption will help Indian EV Market The expansion of PSU banks EV adoption could create a strong institutional demand layer for India’s electric mobility sector. Public sector banks and insurers operate thousands of branch offices across urban, semi-urban, and rural India. Their transition to EV fleets can generate predictable procurement volumes for domestic automakers, especially in the electric sedan, compact SUV, and commercial mobility segments. Beyond vehicle sales, the policy may also accelerate deployment of workplace charging infrastructure at bank headquarters, zonal offices, and regional branches. This can support charger utilisation economics while helping normalise EV infrastructure in tier-2 and tier-3 cities. Another important impact is signalling. When large state-linked financial institutions adopt EVs as operational assets rather than pilot projects, it improves confidence across the broader enterprise mobility market. Private banks, NBFCs, and insurance firms could eventually follow similar fleet transition models to reduce long-term fuel and maintenance costs. PSU banks EV adoption also aligns with India’s larger energy security strategy. Lower petroleum consumption in institutional fleets directly supports efforts to reduce crude import dependence while stabilising operational expenditure during periods of volatile global oil prices. Conclusion & Next Steps The government’s push toward PSU banks EV adoption reflects a broader shift where EV deployment is increasingly being linked with macroeconomic resilience rather than only sustainability targets. Execution, however, will depend on procurement timelines, charging infrastructure readiness, and operational suitability across
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Gaurav Dolwani, CEO of LICO Materials Pvt. Ltd., stated that the partnership would set new benchmarks in the automotive sector for battery recycling and repurposing, particularly by innovating second-life uses for lithium-ion batteries sourced from MG’s EVs.

MG Motor India has been proactive in establishing a robust national EV charging network, having installed over 15,000 charging points across various locations. The company’s MG Charge initiative has already resulted in the installation of 500 charging stations in 500 days, with plans to reach the 1000-point milestone shortly. This expansion is part of MG’s broader strategy to enhance EV accessibility and enrich the customer experience through strategic industrial collaborations.

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