How EV Cars in India Are Shaping EV Components Demand

The rise of electric vehicles (EVs) in India is transforming the automotive industry, significantly impacting EV components India demand and reshaping the EV supply chain in India. As EV adoption grows, there is an increasing need for specialized components, presenting both challenges and opportunities for traditional auto parts makers. Government policies are also driving adoption and domestic manufacturing, further influencing electric vehicle auto parts demand.

Rising Demand for EV Components in India

The surge in EV adoption has led to a substantial increase in demand for specialized components, particularly in the battery and powertrain sectors. By 2035, India’s demand for EV lithium batteries is projected to reach 139 GWh, up from 4 GWh in 2023, primarily driven by the light vehicle segment. This shift reduces demand for traditional engine-related components while boosting the need for EV components India and powertrain parts. Additionally, the growing need for accessible charging infrastructure has spurred demand for AC and DC chargers, with costs ranging from Rs 50,000 to Rs 14 lakh. The use of lightweight materials, such as carbon-fiber-reinforced plastic (CFRP) and metal alloys, is increasing, enhancing EV performance by reducing vehicle weight.

Government Support Post 2024 Budget for EV Components

• Faster Adoption and Manufacturing of Hybrid & Electric Vehicles (FAME) India Scheme: The government has allocated Rs. 2,671.33 crore for FAME-III in the 2024-25 budget. While lower than previous allocations, the scheme continues to provide incentives for electric vehicle purchases
• Production Linked Incentive (PLI) Scheme: The PLI scheme for automobiles and auto components received a substantial boost with an allocation of Rs. 3,500 crore for 2024-25. This is expected to encourage domestic manufacturing of EV components and reduce dependence on imports
• Custom Duty Exemptions: The government has exempted customs duties on critical minerals used in EV batteries, making them more affordable and promoting domestic battery manufacturing
• Electric Mobility Promotion Scheme (EMPS): Launched in March 2024, this scheme offers subsidies for two-wheelers and three-wheelers to accelerate EV adoption in these segments

How MBG Corporate Services Supports EV Components India

• Market Research Services: MBG Corporate Services offers in-depth market analysis to help companies understand the changing EV landscape in India
• Business Advisory Services: They provide strategic planning services to assist companies in transitioning from traditional auto parts manufacturing to EV component production
• Workforce Development: They develop reskilling and upskilling programs for workers impacted by the transition to EVs
• Investment Advisory: MBG provides investment advisory services to help companies capitalize on opportunities in the growing EV sector

In conclusion, the rise of EVs in India is revolutionizing the auto parts industry, driven by increasing demand for EV components and supported by government policies. This transition creates new challenges and opportunities, reshaping the future of the automotive sector, with MBG Corporate Services playing a vital role in guiding companies through this change.