The progress on localization comes at a strategic time, as global supply chains face disruptions and geopolitical tensions highlight the risks of over-reliance on imports.
11 Nov 2025 | 1725 Views | By Yukta Mudgal & Shristi Ohri
India is witnessing significant progress in localizing electric vehicle components, with most green powertrain parts now being manufactured domestically, Hanif Qureshi, IPS, Additional Secretary at the Ministry of Heavy Industries, announced at the India EV Conclave on Tuesday.
Speaking at the event organized by Autocar Professional, Qureshi emphasized the ...
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India is witnessing significant progress in localizing electric vehicle components, with most green powertrain parts now being manufactured domestically, Hanif Qureshi, IPS, Additional Secretary at the Ministry of Heavy Industries, announced at the India EV Conclave on Tuesday.
Speaking at the event organized by Autocar Professional, Qureshi emphasized the government's "substantial focus on localisation" and confirmed that production of numerous EV components has commenced in the country, marking a critical milestone in India's ambition to become a global EV manufacturing hub. "Most components turned green will be manufactured in India," Qureshi stated, highlighting the government's commitment to building a comprehensive domestic EV ecosystem.
The progress on localization comes at a strategic time, as global supply chains face disruptions and geopolitical tensions highlight the risks of over-reliance on imports. India's push for self-reliance in EV components aligns with the broader 'Make in India' initiative and the government's vision of positioning the country as a global manufacturing powerhouse.
Indian manufacturers have made notable progress across several critical EV component categories. In battery technology, several companies are establishing lithium-ion cell manufacturing facilities under the Production Linked Incentive (PLI) scheme for Advanced Chemistry Cells. The government approved ₹18,100 crore for ACC battery manufacturing, aiming for 50 GWh capacity. Domestic production of traction motors, inverters, and controllers has increased significantly, with companies like Sona Comstar, Bharat Heavy Electricals Limited (BHEL), and others ramping up capacity.
Indian companies are also manufacturing charging equipment, including both slow and fast chargers, reducing dependence on imports. Several startups and established electronics manufacturers have developed indigenous Battery Management Systems (BMS) solutions, a critical technology for EV safety and performance.
The government's Phased Manufacturing Programme (PMP) under FAME-II has been instrumental in driving localization. The scheme mandates progressively higher levels of domestic value addition, incentivizing manufacturers to establish local supply chains. Under various schemes, the government requires at least 50% Domestic Value Addition (DVA) over five years for manufacturers to qualify for incentives. This has prompted both Indian and foreign companies to invest in local manufacturing facilities and develop domestic supplier networks.
Despite the progress, certain high-technology components remain dependent on imports, particularly semiconductor chips, advanced battery chemistries, and rare earth magnets used in high-performance motors. Qureshi acknowledged these challenges, noting that the Ministry is in discussions with companies that have the potential to manufacture rare earth elements domestically.
The global shortage of rare earth magnets, following China's export restrictions in April 2025, has particularly highlighted the vulnerabilities in the supply chain. Companies like Mahindra & Mahindra, Uno Minda, and Sona Comstar have expressed interest in establishing rare earth magnet manufacturing facilities in India.
The localization drive has attracted significant investment. Major automotive players including Tata Motors, Mahindra & Mahindra, Maruti Suzuki, Hyundai, and newcomers like VinFast have committed billions to establishing EV manufacturing and component production facilities. According to Ministry of Skill Development and Entrepreneurship estimates, the EV industry could add 10 million direct jobs by 2030, with 50 million indirect jobs in the sector. Component manufacturing forms a substantial portion of this employment potential.
Qureshi emphasized that achieving global competitiveness requires a multi-faceted approach. "Spending on R&D and scale of operation has to be improved to push the cost of manufacturing lower," he stated, identifying innovation and economies of scale as critical factors. The Additional Secretary noted that the real challenge lies in innovation and R&D to develop products suitable for different global markets. He stressed that both R&D investments and manufacturing scale need significant improvement to enhance India's competitiveness in the global automotive sector.
The localization of EV components carries strategic implications beyond economics. A robust domestic supply chain ensures energy security, reduces vulnerability to global disruptions, and positions India as a reliable manufacturing partner for international brands. Several global automotive companies are already sourcing components from India for their worldwide operations, and the growing EV component manufacturing base is expected to further strengthen this trend.
Multiple government schemes support the localization effort, including the PLI scheme for automotive components, FAME schemes for EVs, and targeted incentives for critical components like batteries and semiconductors. State governments have also announced EV-specific policies with incentives for manufacturing.
The India EV Conclave, attended by over 300 stakeholders including policymakers, manufacturers, technology providers, and investors, continues on Wednesday with sessions on battery innovation, charging infrastructure, and sustainable manufacturing practices.