India could achieve 90-100% localisation across several EV component categories by 2030, according to a new report from the Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research & Analytics.
However, the report warns that continued reliance on imported semiconductors, rare-earth magnets and specialised materials could limit deeper domestic value creation.
The report, “Beyond battery packs: Localisation in manufacturing EV components”, found that non-battery systems, including motors, power electronics, thermal management systems, chargers and vehicle control units, represent significant opportunities for domestic manufacturing growth.
India’s EV sales have increased around 14-fold since 2020, boosting opportunities for domestic manufacturing. The report said recent investments in powertrains, power electronics and charging infrastructure could help several non-battery EV component categories achieve near-complete localisation by 2030.
The study highlighted that around 60% of recent EV non-battery component manufacturing announcements have come from companies approved under India’s Production-Linked Incentive (PLI) scheme for Automobile and Auto Components. However, despite the scheme allocating INR25,938 crore (US$2.98 billion), less than 10% of available funding had been disbursed by early 2026.
Researchers noted that localisation rates alone do not necessarily reflect domestic value creation. While components are increasingly assembled and manufactured in India, many critical inputs continue to be sourced overseas.
“A number of factors could influence future localisation outcomes, including access to critical materials, cost competitiveness relative to established manufacturing hubs, supplier scale, component standardisation, and the development of domestic technology capabilities,” said Charith Konda, energy specialist at IEEFA.
Components such as traction motors, power electronics, vehicle control units and charging systems continue to rely heavily on imported subcomponents and raw materials, the report said.
India makes localisation gains
The analysis found that India has made the strongest localisation gains in segments aligned with its established automotive manufacturing base, including structural components, suspension systems, braking systems and wiring harnesses.
However, semiconductors and rare-earth magnets remain among the most significant barriers to deeper localisation. These materials are essential for EV motors, power electronics, charging equipment and vehicle control systems, yet global production remains heavily concentrated in China and Taiwan.
“Accelerating development of semiconductor and rare-earth magnet supply chains, expanding participation of EV startups in localisation programmes, promoting greater component standardisation, and increasing investment in indigenous research and development, all have a role to play,” added Prabhakar Sharma, senior consultant, JMK Research & Analytics.
The report concluded that developing domestic capabilities in upstream technologies, including semiconductors, magnets and advanced materials, will be necessary if India is to capture a larger share of value from its growing EV manufacturing sector. Download the full report: Beyond battery packs: Localisation in manufacturing EV components.
