“The car industry has invested a lot in hybrid, but my opinion is electric cars will take over a lot of hybrids quicker than people think now.” – Henrik Fisker.
Days are not far when we will get to see two out of ten cars are electronic vehicles and with that vision comes the thought of localizing electronic vehicles’ components and their whereabouts. Does India have a supplier ecosystem that allows automakers to fully localize their electric vehicles (EVs)? One can easily forecast that there is a large demand for EV Components in the Indian market. However, the supply of the same is still very limited. The Government is looking into it and is providing support and schemes. It can be predicted that soon indigenous electronic vehicle components will be abundantly available and will create an alternation in the automotive industry as a whole.
It is still uncertain about the number of companies that will be investing in the EV components but that will come to light in the next 1-2 years. India should start focusing on components that have economies of scale advantage such as two- and three-wheelers. Focus can be shifted towards probable export opportunities too, to have economies of scale. Electric motor manufacturing requires multiple subcomponents made through developing(shafts, bearings) and launching(casings) processes. This could expand into downstream services, particularly connectivity, where India can make a global play due to its software and application-engineering qualifications, and a lower cost base, according to the ACMA-McKinsey report. Indian SMEs could apprehend an incremental USD20 billion to USD30 billion in markets by 2030.
If you take a look at the current market scenario then companies like Tata Motors already introduced their EV models like Nexon and Tiago and many other prominent brands are planning to create a blast with their exceptional EV models by 2025. Looking at this trend and approach of the current big brands it is clear that the EV Component is a sector that is not just a mere idea but a necessity that needs to be put into action in order to help and support the massive demand for the same.