As the world accelerates towards sustainable mobility, India has positioned itself as one of the fastest-growing electric vehicle (EV) markets globally. However, behind every electric car, scooter, or bus is a complex web of interconnected components, technologies, and processes that form the EV supply chain. From raw materials to final vehicle assembly and charging infrastructure, understanding the EV supply chain in India is crucial to appreciating the opportunities and challenges of this green revolution.
The Anatomy of the EV Supply Chain
The electric vehicle supply chain is fundamentally different from that of internal combustion engine (ICE) vehicles. While traditional vehicles depend heavily on mechanical components, EVs rely more on electrical and electronic parts. The EV supply chain in India can be divided into six major segments:
- Raw Material Sourcing
- Battery Cell & Pack Manufacturing
- Component Manufacturing (Motors, Electronics)
- Vehicle Assembly (OEMs)
- Charging Infrastructure
- Recycling and Battery Second Life
Raw Material Sourcing: Building Blocks of the EV Ecosystem
The foundation of the EV supply chain lies in critical raw materials such as lithium, cobalt, nickel, graphite, aluminum, copper, and rare earth elements like neodymium. These materials are essential for making lithium-ion batteries, electric motors, and power electronics.
Indian Players:
- Hindustan Copper, Vedanta Ltd, and Hindustan Zinc: Provide copper and zinc used in wiring and motor components.
- NALCO and Hindalco Industries: Supply aluminum for battery casings and lightweight vehicle bodies.
- HEG Ltd and Graphite India Ltd: Engage in graphite production for battery anodes.
India lacks sufficient reserves of lithium and cobalt and thus heavily relies on imports, particularly from China, Australia, and the Democratic Republic of Congo.
Battery Cell & Pack Manufacturing: The Heart of EVs
Batteries make up 30-40% of an EV’s total cost. Most Indian manufacturers currently import lithium-ion cells and assemble them into battery packs domestically. However, this is changing with large-scale investments in indigenous cell manufacturing.
Major Companies:
- Exide Industries and Amara Raja Energy & Mobility: Leading battery makers setting up lithium-ion cell gigafactories.
- Tata Chemicals: Involved in battery material R&D and electrolyte development.
- Neogen Chemicals and Balaji Amines: Supply specialty chemicals used in battery production.
Despite progress, India still imports over 60% of its battery cells from China, South Korea, and Japan.
Component Manufacturing: Powering the Drivetrain
EVs require motors, inverters, controllers, sensors, and embedded systems. Many of these components are still imported due to India’s limited production capabilities.
Key Segments and Players:
- Electric Motors & Rare Earth Magnets:
- Sona BLW Precision Forgings: Supplies drivetrain systems.
- CG Power and Sharda Motors: Entering EV motor manufacturing.
- Electronics & Software:
- Tata Elxsi, KPIT Technologies, and L&T Technology Services: Provide embedded software, vehicle control units (VCUs), and ADAS systems.
- Servotech Power Systems and HBL Power Systems: Manufacture inverters, DC-DC converters, and onboard chargers.
- Sensors and Switches:
- Minda Corporation, Uno Minda, and Varroc Engineering: Supply various sensor and control technologies for EVs.
China remains a key source for rare earth magnets and BMS (Battery Management Systems), as India lacks processing capabilities for these materials.
Vehicle Assembly: Bringing It All Together
Original Equipment Manufacturers (OEMs) integrate all the components into a complete electric vehicle. This includes battery packs, motors, controllers, vehicle body, software systems, and interior features.
Major OEMs in India:
- Tata Motors: Market leader in passenger EVs with models like Nexon EV.
- Mahindra & Mahindra: Expanding its EV portfolio with XUV400 and commercial EVs.
- TVS Motors, Bajaj Auto, and Hero MotoCorp: Key players in electric two-wheelers.
- Olectra Greentech and JBM Auto: Focused on electric buses.
- Greaves Cotton (Ampere Vehicles): Specializes in affordable electric scooters.
OEMs often rely on global partnerships or joint ventures to access advanced battery and electronics technologies.
Charging Infrastructure: Powering Mobility
Charging infrastructure is critical to EV adoption. This includes public charging stations, home chargers, and battery-swapping solutions.
Infrastructure Developers:
- Tata Power: Leading public charging network in India.
- NTPC, Reliance Industries, and IOCL: Investing in EV charging and green hydrogen.
- Servotech Power Systems and Delta Electronics: Supply EV chargers and related power equipment.
Most chargers and power control units are still imported, particularly fast-charging components from China.
Battery Recycling & Second Life: Closing the Loop
With increasing EV adoption, battery disposal and reuse are becoming key focus areas. Recycling enables the recovery of valuable materials like lithium, cobalt, and nickel.
Emerging Indian Players:
- Gravita India: Recycles lead-acid and lithium-ion batteries.
- Lohum Cleantech and Attero Recycling (Private): Provide end-to-end battery recovery solutions.
Government policy support is encouraging a circular economy through Extended Producer Responsibility (EPR) mandates.
India’s Import Dependency: The China Challenge
Despite its EV ambitions, India remains heavily reliant on China for:
- Lithium-ion cells and battery modules
- Battery Management Systems (BMS)
- Rare earth magnets for motors
- Semiconductors and control units
China currently accounts for nearly 70% of India’s EV component imports, especially in two-wheeler and three-wheeler segments. This dependence poses strategic risks and underlines the urgency of localization.
Government Push for Localization
To address the import challenge and encourage self-reliance, the Indian government has launched multiple initiatives:
- PLI Scheme for Advanced Chemistry Cell (ACC) Batteries: INR 18,100 crore outlay for domestic battery cell manufacturing.
- FAME II Scheme: Incentives for locally manufactured EVs and components.
- Make in India & Atmanirbhar Bharat: Focus on indigenization and technology transfer.
These policies are attracting investments from domestic and global players, helping build a robust EV ecosystem.
The Road Ahead: Challenges and Opportunities
Challenges:
- High dependency on imports (especially from China)
- Lack of raw material reserves (lithium, cobalt)
- Limited local capabilities in advanced electronics and cell chemistry
- Underdeveloped recycling infrastructure
Opportunities:
- India’s large auto market offers scale for EV growth
- PLI schemes are incentivizing domestic production
- Joint ventures can bridge technology gaps
- Growing demand for energy storage and smart mobility
Conclusion: Driving Towards a Self-Reliant EV Ecosystem
India’s EV supply chain is at a pivotal stage. While significant progress has been made in battery pack assembly, vehicle manufacturing, and charging infrastructure, critical gaps remain in battery cell manufacturing, rare earth processing, and power electronics. Reducing import dependency and fostering a self-sufficient ecosystem will be key to long-term EV success.
With policy support, strategic investments, and technology partnerships, India is well on its way to becoming not just an EV consumer, but a global manufacturing hub for electric mobility.
Info Section: Key Terms Explained
| Term | Description |
|---|---|
| Battery Management System (BMS) | Controls battery charging, safety, and thermal performance |
| OEM (Original Equipment Manufacturer) | A company that assembles and sells the final vehicle |
| PLI Scheme | Government Production-Linked Incentive for local manufacturing |
| FAME II | Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (Phase II) Scheme |
| Rare Earth Magnets | Essential for high-efficiency motors, made from metals like neodymium |
| Gigafactory | Large-scale manufacturing plant for lithium-ion cells |
| VCU (Vehicle Control Unit) | Central electronic system managing EV operations |
| Circular Economy | Model where products are reused, recycled, or repurposed to reduce waste |