India needs to address the localisation challenge for EV manufacturing to be truly insulated from global supply shocks.
08 Apr 2025 | 1719 Views | By Prerna Lidhoo
With a significant influx of investment and policy support, while India’s EV sector is rapidly evolving, challenges remain, from supply chain bottlenecks to charging infrastructure and consumer adoption. One of the challenges is the need to build local manufacturing, said Thiruppathy Srinivasan, head of the EV Task Force, Government of ...
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With a significant influx of investment and policy support, while India’s EV sector is rapidly evolving, challenges remain, from supply chain bottlenecks to charging infrastructure and consumer adoption. One of the challenges is the need to build local manufacturing, said Thiruppathy Srinivasan, head of the EV Task Force, Government of Tamil Nadu, at Autocar Professional's Future Powertrain Conclave.
Tamil Nadu has emerged as India’s leading hub for EV manufacturing, particularly for two-wheelers. However, Srinivasan warns that the industry is still highly dependent on imports. "The number of OEMs who have invested in the EV sector has been pretty good. Initially, it was quite difficult, but many OEMs have made significant investments," he says.
"But when it comes to Tier 1 and Tier 2 suppliers, particularly in critical components and raw materials, the level of investment is still not at the level we need. People talk about 70% of India's electric two-wheelers being manufactured in Tamil Nadu. But the sad reality is that 80% of the components that go into those two-wheelers are sourced from outside the state—many from outside the country," Srinivasan explains.
This heavy reliance on imports creates long-term risks, especially regarding cost fluctuations and supply chain disruptions. "If we don’t localize the production of critical components like batteries, motors, and raw materials such as copper, we will always be at the mercy of global supply chains. This is an area where the government needs to step in with incentives to encourage local production," he adds.
Beyond manufacturing, the industry also faces a technological gap. "Many of the EV technologies currently available are designed for other markets," Srinivasan notes. "They are not necessarily optimized for Indian conditions, such as extreme temperatures, rough roads, or high traffic density. This is another area where we are actively working to encourage innovation and adaptation."
The Role of Dealerships and Infrastructure
EV adoption isn’t just about manufacturing—it requires a robust ecosystem, from charging infrastructure to dealerships that can effectively sell and service these vehicles. CS Vigneshwar, President of the Federation of Automobile Dealers Associations (FADA), says that this transition needs overall support from the ecosystem.
"Right now, as dealers, we are technologically agnostic. We don't know which technology will ultimately dominate the market. But what we do know is that we must persist in supporting all possible solutions," he explains. While two-wheelers have seen rapid adoption, passenger vehicles (PVs) have struggled to gain traction. "The passenger vehicle segment is the dying light in our industry when it comes to EVs. Even today, EV penetration in this segment is just around 3%. It hasn’t grown massively in the last two years," Vigneshwar notes.
He emphasizes the importance of charging infrastructure, particularly in reducing consumer anxiety. "We need to improve our charging system. Right now, 20-30% of chargers don’t work at any given time, mostly due to cable failures. Wireless, contactless charging could be a game-changer," he suggests. "It’s not just an issue in India—it’s a global problem. But if we fix it here, we can lead by example."
Unlocking the Electric Motorcycle Market
While electric scooters dominate the two-wheeler EV market, electric motorcycles have lagged behind. Dinesh Arjun, co-founder and CEO of Raptee, explains why. "One of the main reasons you have so many electric scooters but not many electric motorcycles is simply because there are almost no products in the market," he says. "The few options that do exist are either too expensive or not practical enough to replace traditional motorcycles."
He believes that once viable electric motorcycles enter the market, adoption will follow naturally. "There's no fundamental reason why motorcycles can’t transition to electric. If we introduce high-quality products that match or exceed the performance of petrol motorcycles, consumers will adopt them," Arjun argues.
Charging access is another key concern. "I personally believe that 90% of all electric two-wheeler charging will happen at home or work," he says. "But the real problem is not people running out of charge—it’s the fear that they won’t find a charger if they do. That’s what we need to fix."
The Commercial Vehicle Challenge
While two-wheelers and passenger EVs have been the focus of much of the industry’s attention, heavy commercial vehicles (HCVs) represent another major challenge. Milind Girgaonkar, head of R&D for HCV at Montra Electric, believes that EVs are not a one-size-fits-all solution. "If you look at heavy commercial vehicles, EVs work best for fixed routes with predictable daily distances," he explains. "For example, if a truck runs only 100 km per day, EVs are the best option."
However, commercial EV adoption is still in its early stages. "Right now, trucks are running at just 40% of their efficiency. The question is, how do we unlock the remaining 60%? That’s where innovation is needed," Girgaonkar notes. One of the biggest bottlenecks in EV adoption is the charging network. Karthikeyan Palinasamy, founder and CEO of Zeon Charging, highlights the need for a smarter approach to infrastructure development.
"Yes, faster chargers help, but the real issue is that vehicles themselves need to evolve to absorb more power efficiently," he explains. "Early EVs had sub-1C charge speeds. Now we’re seeing 1.5C and 2C charging speeds, but we need to go even further." For commercial vehicles, charging dynamics are different. "Only about 20% of passenger vehicle charging happens on DC fast chargers. But for trucks, fast charging will be essential," Palinasamy notes. "We need charging points at the start, middle, and end of their routes, with high-power charging capabilities."
The Future of EVs
Beyond hardware, the EV revolution is increasingly being driven by software. Srinivas Aravapalli, founder and CEO of BlueBinaries, explains how vehicle architecture is evolving. "EV architectures are moving away from traditional designs. Today, most high-end EVs use domain-based or journal-based architectures," he says. "These architectures allow for greater connectivity, advanced driver-assistance systems (ADAS), and over-the-air updates."
Software-driven vehicles will be continuously optimized throughout their lifecycle. "Over-the-air updates will allow vehicles to improve in real-time, adding new features and fixing issues without requiring a trip to the service center," Aravapalli explains. "We are building EVs that are not just electric but also intelligent and adaptable."
While India’s EV industry has made significant strides, industry leaders agree that the journey is far from over. As Vigneshwar puts it, "EVs still have a big mountain to climb when competing with internal combustion engine (ICE) vehicles. The future will be different, but we need more innovative policies, better infrastructure, and industry-wide collaboration to make it happen."
The shift to EVs is not just about replacing petrol and diesel vehicles—it’s about building an entirely new ecosystem that integrates manufacturing, software, infrastructure, and policy, he adds.