India is making impressive progress in localising electric vehicle (EV) manufacturing, with several non-battery component categories expected to achieve 90–100% localisation by 2030. According to a recent report by the Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research & Analytics, the country has significantly strengthened its manufacturing capabilities in structural and mechanical components, creating a solid foundation for a competitive domestic EV industry.
However, the report highlights that localisation alone does not guarantee higher domestic value creation. Many critical components, including semiconductors, rare-earth magnets and advanced electronic materials, are still imported, making India’s EV supply chain vulnerable to global disruptions. These components are essential for traction motors, power electronics, charging systems and vehicle control units, where international suppliers continue to dominate.
Government initiatives such as the Production-Linked Incentive (PLI) scheme have encouraged fresh investments in EV manufacturing, particularly in powertrain systems and charging infrastructure. Yet, the report notes that fund disbursement has remained relatively slow, indicating room for faster policy execution.
To achieve true self-reliance, India must move beyond assembling components and invest in semiconductor manufacturing, rare-earth processing, advanced materials, research and development and a robust domestic supplier ecosystem. Strengthening these upstream capabilities will not only reduce import dependence but also enhance economic value creation, improve supply chain resilience and position India as a global hub for EV manufacturing over the coming decade.
