Revamping the road to the mobilization of EVs, the Government of India has supported the entry of electric vehicle mass adoption with its multiple subsidies and incentive schemes.
Considered a fledgling in fronts of giant automotive manufacturers like China and Japan, India has recently crossed the threshold of establishing a supply chain ecosystem in the country.
Hence, this sudden transition of EVs in India has created both opportunities as well as challenges for domestic automotive component makers who are forced to import electric vehicle components like batteries, powertrains, etc., from international suppliers.
This in turn raises the manufacturing costs of these vehicles, therefore stagnating the EV sales market in the long run.
Under the careful perception of industry experts, this scenario was already predicted a few years earlier during the rise of electric mobility, which is why India’s central government stressed focusing a large deal of its future investment on establishing manufacturing units in the country at an early stage.
Keeping this in mind, CRISIL Research had predicted that the revenue of the EV Components Market of India is likely to accelerate at a compound annual growth rate of around 76% to Rs 72,500 crore in fiscal 2027 from Rs 4,300 crore last fiscal.
This will raise the current share of the EV Components Market of India to rise in the overall automotive components market to 9-11% as compared to a negligible 1% currently.
Before transcending the EV Components Market of India and its standing at the world’s stage, let’s take a peek at What types of EV Components are there in the first place.
Types of EV Components
Starting with the powerful battery packs of an electric vehicle which serve as the key element in the EV Components Market of India, electric vehicles’ main components include,
- Traction Battery Pack – Powering the electric motors of an electric vehicle, the battery acts as an electrical storage system. It also stores energy in the form of DC.
- DC-DC Converter – This EV component distributes the output power which is coming from the battery to a required level.
- Auxiliary Batteries – In the absence of the main battery, the auxiliary batteries will continue to charge the car and prevents the voltage drop that is produced during engine start from affecting the electrical system.
- Electric Motor – Its main function is to convert electrical energy into kinetic energy, an important feature of an electric motor is the regenerative braking mechanism.
- Charge Port – Coverts DC power from the batteries to AC power and the AC generated during regenerative braking into DC.
- Onboard Charger – This key element connects the electric vehicle to an external supply and charges the battery pack.
- Controller – Used to convert the AC supply received from the charge port to its DC supply.
- Power Inverter – Another key element of the EV Components Market of India, it performs the regulation of electrical energy from the batteries to electric motors.
- Thermal System – This system maintains an operating temperature for the main components of an electric vehicle such as an electric motor, controller, etc.
- Transmission – Used to transfer the mechanical power from the electric motor to the wheels, through a gearbox.
EV Components Market of India – 2022 & Beyond
Supporting the cause of electric mobility adoption in the country, the Indian government has revealed its plans of making an automated data transfer system that will monitor the localization content of EVs availing subsidies under ₹10,000 crore FAME-II policy.
This move is done to ensure the safety, feasibility, validity and reliability of these components as the system will enable monitoring and verification of domestic value addition being done by companies. Therefore, raising the bar for the EV Components Market in India.
EV Components Market of India has grown exponentially since parts like batteries (60% of EV component revenue by FY2027), electric drivetrains (15%), electronics (15%) and others parts (10%) contribute a large share of its revenue base beyond ICE vehicles.
Major OEMs are also coming forward to promote the EV Components Market of India as they have already started investing in developing these components.
One of the prime examples of this investment in the EV Components Market of India is the entry of Toyota Motor Corp which plans to make India a manufacturing hub for electric vehicle parts to meet demands in India, and export to Japan and some ASEAN countries.
According to the sources, the company is planning to produce e-drives or electric powertrain parts used by different electric vehicle types like battery EVs, plug-in hybrids and other hybrid-based models.
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