Auto component industry gears up for big shift to EVs

13 Dec 2022 CW Team

As the component industry looks to invest $2-3 billion in the next two years, most ancillary makers say EV parts are contributing a sizeable chunk to their order books.

Multinational companies such as Fiat’s parent Stellantis are looking to source more components from India to support their EV programme. On his recent visit to India, Carlos Tavares, group CEO of Stellantis, said they are open to discussions with component makers and are ready to localise work on EVs, considering India’s low-cost supplier base. Other companies like Renault and Daimler may also look at sourcing more EV parts from India.

This follows a visible shift towards electric mobility in both two- and three-wheeler industries. By 2030, almost the entire three-wheeler industry and close to 80% of the two-wheeler industry could become electric. The rate of change in the passenger vehicle (PV) and commercial vehicle (CV) sectors is slower — only 10-15% of PVs and about 10% of CVs are expected to be electric by 2030.

Meanwhile, the industry body Automotive Component Manufacturers Association (ACMA) has conducted several tech shows for leading original equipment manufacturers (OEMs) in the EV space such as Hero MotoCorp, Tata Motors, Ashok Leyland, Hyundai and Volvo Eicher to enable domestic components manufacturers to scale up and become globally competitive, says Vinnie Mehta director-general, ACMA. A study by ACMA and the Society of Indian Automobile Manufacturers has identified an opportunity to the tune of $20 billion in the next five years for the localisation of electric components.

This shift is propelled by policies such as the Faster Adoption & Manufacturing of Electric Vehicles scheme and production-linked incentive schemes. It could make India an attractive, alternative source of high-end auto components for the world in the next five years.

Auto component companies focussed on engine parts, forging, casting etc are proactively diversifying or entering into JVs to make cost-competitive electric parts using the competencies they have in the casting and forging side, said Hemal Thakkar, director at Crisil Market Intelligence & Analytics.

Also Read
Gadkari inaugurates 7 NH projects worth Rs 24.44 bn in MP
Aurangabad-Pune expressway work to begin soon: Gadkari

When electric vehicles (EV) become more and more popular, can the automotive component industry be far behind? Auto component makers in India are bracing for change. They have not only lined up massive expansion and investment projects but are also diversifying, derisking portfolios and entering into joint ventures (JVs) to ride into a brave new world. As the component industry looks to invest $2-3 billion in the next two years, most ancillary makers say EV parts are contributing a sizeable chunk to their order books. Multinational companies such as Fiat’s parent Stellantis are looking to source more components from India to support their EV programme. On his recent visit to India, Carlos Tavares, group CEO of Stellantis, said they are open to discussions with component makers and are ready to localise work on EVs, considering India’s low-cost supplier base. Other companies like Renault and Daimler may also look at sourcing more EV parts from India. This follows a visible shift towards electric mobility in both two- and three-wheeler industries. By 2030, almost the entire three-wheeler industry and close to 80% of the two-wheeler industry could become electric. The rate of change in the passenger vehicle (PV) and commercial vehicle (CV) sectors is slower — only 10-15% of PVs and about 10% of CVs are expected to be electric by 2030. Meanwhile, the industry body Automotive Component Manufacturers Association (ACMA) has conducted several tech shows for leading original equipment manufacturers (OEMs) in the EV space such as Hero MotoCorp, Tata Motors, Ashok Leyland, Hyundai and Volvo Eicher to enable domestic components manufacturers to scale up and become globally competitive, says Vinnie Mehta director-general, ACMA. A study by ACMA and the Society of Indian Automobile Manufacturers has identified an opportunity to the tune of $20 billion in the next five years for the localisation of electric components. This shift is propelled by policies such as the Faster Adoption & Manufacturing of Electric Vehicles scheme and production-linked incentive schemes. It could make India an attractive, alternative source of high-end auto components for the world in the next five years. Auto component companies focussed on engine parts, forging, casting etc are proactively diversifying or entering into JVs to make cost-competitive electric parts using the competencies they have in the casting and forging side, said Hemal Thakkar, director at Crisil Market Intelligence & Analytics. Also Read Gadkari inaugurates 7 NH projects worth Rs 24.44 bn in MP Aurangabad-Pune expressway work to begin soon: Gadkari

Infrastructure Urban

27 Oct 2025

Coal Ministry Achieves Milestones under Special Campaign 5.0

The Ministry of Coal and its Public Sector Undertakings (PSUs) have achieved notable milestones under the Special Campaign 5.0, focusing on cleanliness, operational efficiency, and sustainability across the coal sector. During the implementation phase from 2–31 October 2025, over 1,205 sites were cleaned, covering 68,04,087 sq ft, nearing the target of 82,51,511 sq ft. Scrap disposal of 5,813 MT against a target of 8,678 MT generated Rs 228.7 million in revenue. In addition, 1,11,248 physical and 30,331 electronic files were reviewed, with 74,123 weeded out or closed. Key initiatives showc..

Infrastructure Energy

27 Oct 2025

Vesting Orders Issued for Three Coal Blocks under Commercial Auctions

The Ministry of Coal’s Nominated Authority has issued vesting orders for three coal blocks under commercial coal block auctions on 23 October 2025. The Coal Mine Development and Production Agreements (CMDPAs) for these mines were earlier signed on 21 August 2025. The three blocks include Rajgamar Dipside (Deavnara), Tangardihi North, and Mahuagarhi. Of these, two are partially explored while one is fully explored, with a combined peak rated capacity of around 1 MTPA and geological reserves of approximately 1,484.41 million tonnes. These mines are expected to generate annual revenue of abou..

Infrastructure Urban

27 Oct 2025

TEC, IIT-Hyderabad Partner to Boost 6G and Telecom Standards

The Telecommunication Engineering Centre (TEC), technical arm of the Department of Telecommunications (DoT), has signed a Memorandum of Understanding (MoU) with the Indian Institute of Technology Hyderabad (IIT Hyderabad) for joint research and technical collaboration in advanced telecom technologies and standardisation. The partnership focuses on developing India-specific standards and test frameworks for next-generation networks, including 6G, Artificial Intelligence (AI), and Non-Terrestrial Networks (NTNs). It also aims to enhance India’s participation in international standardisation f..