(MENAFN- KNN India)
New Delhi, Jul 2 (KNN) India's electric vehicle (EV) industry is poised for a significant transformation, with a new report from Frost & Sullivan projecting substantial localisation of critical components by 2030.
This development comes as the country's EV sector experiences robust growth, driven by government incentives, increasing consumer acceptance, and a growing number of product launches.
The report highlights several factors that are expected to accelerate EV adoption across various segments in the coming years. These include an expanding product portfolio, improvements in charging infrastructure, better financing options, and a gradual reduction in battery prices.
A key focus of this localisation drive is the auto components market for EVs, which presents a substantial opportunity. The government's Production Linked Incentive (PLI) programmes for batteries are anticipated to boost domestic manufacturing.
Under this scheme, 67 applicants have already been approved for the Component Champion Incentive scheme.
The Indian government's new EV policy framework mandates that companies entering the EV manufacturing sector must establish facilities within three years and achieve a localisation threshold of 50 per cent within five years.
While progress in battery technology and vehicle compatibility with advanced technologies is essential for rapid EV growth, the report acknowledges that achieving 100 per cent localisation in India is not feasible. This is due to the scarcity of certain rare earth materials, limited lithium-ion mining, and low levels of electronics manufacturing in the country.
Nevertheless, the report projects significant increases in localisation across various components. Key components such as batteries are expected to reach a localisation level of 40-50 per cent by 2030, up from 20-25 per cent in 2023.
Power and control wiring harnesses, along with connectors, could reach 60-70 per cent, while AC charging inlet type-2 might achieve 70-80 per cent localisation.
Other components, including DC converters, MCBs, circuit breakers, electric safety devices, electric compressors, and DC charging inlets, are projected to see localisation increase to 60-70 per cent by 2030 from the current 0-30 per cent.
The report attributes this expected increase in localisation to the presence of global EV component suppliers in India, who are anticipating high volumes that will support economies of scale.
India is also well-positioned to achieve higher localisation in motors and controllers, thanks to existing capabilities in manufacturing hubs like Coimbatore.
Looking ahead, the report suggests that India is well-positioned to develop its electric mobility ecosystem over the next decade, particularly in the two-wheeler (E2W) and three-wheeler (E3W) segments.
However, the report cautions that developing capabilities in the four-wheeler (E4W) segment is likely to take longer.
(KNN Bureau)
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