The Implications of Corporate Social Responsibility (CSR) Practices in Electric Vehicle (EV) Automobile Companies in India

Abstract

Corporate Social Responsibility (CSR) has emerged as a strategic competitive advantage in the Indian electric vehicle industry. Driven by Section 135 of the Indian Companies Act (2013), and reinforced by national sustainability initiatives such as FAME-III, Production Incentive Scheme (PLI) and India’s 2070 carbon neutrality target, CSR has evolved from a mere charity to a driver of competitive advantage. This study examines the CSR practices of Tata Motors (EV division), Mahindra Electric, Ather Energy, Ola Electric and Hero Electric between 2016 and 2025. The total CSR expenditure of these companies has increased from Rs 28.4 crore in FY 2020/21 to Rs 198.7 crore in FY 2024/25. Corporate social responsibility initiatives – particularly EV charging infrastructure, battery recycling, environmental education and air quality improvements – showed a strong positive correlation with financial performance (EPS: r = 0.71, p < 0.01; ROE: r = 0.68, p < 0.05). The results suggest that CSR not only contributes to environmental goals and policy alignment, but also enhances financial sustainability. India aims to produce 10 million electric vehicles per year by 2030, and CSR positions EV manufacturers as sustainability accelerators rather than mere transportation providers.