India’s electric mobility sector witnessed rapid compounded annual growth rate of 84.9% in electric vehicle (EV) sales between 2020 and 2024. As the nation targets 30% EV penetration by 2030, Original equipment manufacturers (OEMs) and large tier-I automotive component manufacturers (ACMs) are scaling efforts to meet demand and localize production. However, reliance on imported components remains a challenge – one that targeted localization strategies can turn into an opportunity. Strengthening domestic supply chains and fostering local technical capabilities will be important for cost competitiveness, reduced geopolitical risks, and enhancing innovation throughout the EV ecosystem.


India’s automotive medium, small and micro enterprises (MSMEs), making up 75% of ACMs and playing a vital role in sector output, are well placed to drive this shift. Their agility, process expertise, and regional presence make them ideal partners for OEMs and tier-I suppliers. Government-led initiatives focused on localization further reinforce the business case for deepening domestic value chains by enabling local sourcing and manufacturing. While some MSMEs have adapted to EV manufacturing demands, significant untapped potential exists in localizing core EV powertrain components. The existing interdependencies that have made India's automotive supply chain globally competitive for traditional internal combustion engine vehicle markets can now be leveraged and evolved to build a world-class local EV ecosystem. OEMs and ACMs that proactively invest in supplier development and strategic partnerships with MSMEs can secure a flexible, innovative, and cost-competitive supply base.


In this context, WRI India is hosting a closed-door virtual roundtable on “Accelerating EV Localization in India – Strategic Partnerships and Supply Chain Innovation.” This discussion will convene senior representatives from OEMs, ACMs and focus on -

  1. MSME capability development
  2. Collaborative partnership models
  3. Technology transfer & co-development
  4. Policy support mechanisms

Insights will inform a strategic publication capturing best practices and actionable recommendations for building a competitive, localized EV component ecosystem in India.


Please reach out to priyal.shah@wri.org if you are an OEM or Large tier-1 representative and would like to join the discussion.