India’s Position in the Global EV Supply Chain
As the global economy moves toward sustainability and reduced carbon emissions, the electric vehicle (EV) sector is emerging as a key pillar of the transition. At the heart of this shift lies a complex global supply chain encompassing critical minerals, battery manufacturing, vehicle assembly, and charging infrastructure. India, with its vast market, strategic geopolitical position, and policy support, is increasingly playing a vital role in the global EV supply chain.
From lithium-ion battery production to final vehicle exports, India is no longer just a consumer—it’s becoming a serious contender in the global EV ecosystem.
⚙️ The Global EV Supply Chain: A Quick Overview
The EV supply chain comprises several stages:
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Mining and processing of critical raw materials (e.g., lithium, cobalt, nickel)
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Battery component manufacturing (cells, modules, packs)
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Vehicle production and integration
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Distribution, sales, and after-market services
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EV infrastructure and software ecosystems
China currently dominates much of the supply chain, especially battery production. However, India is steadily carving out a space for itself, thanks to increasing foreign investment, policy incentives, and domestic demand.
🇮🇳 India’s Strategic Role: From Assembly to Innovation
1. Battery Manufacturing & Gigafactories
One of the largest contributors to EV cost is the battery, typically accounting for 30–40% of the total vehicle price. India’s Production-Linked Incentive (PLI) scheme for Advanced Chemistry Cells (ACC) aims to localize battery production and reduce dependency on imports.
Key developments:
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Ola Electric, Reliance New Energy, and Rajesh Exports are setting up multi-GWh gigafactories.
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Companies are entering JV agreements with global firms for cell chemistry technology and scale.
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Government goal: 50 GWh of battery manufacturing capacity by 2030
🔗 NITI Aayog – Battery Storage PLI
2. Critical Mineral Access and Trade Partnerships
While India does not have significant reserves of lithium and cobalt, it is building supply alliances to ensure raw material availability:
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MoUs signed with Australia, Argentina, and Bolivia for lithium procurement.
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KABIL (Khanij Bidesh India Ltd) is actively acquiring overseas mining rights.
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Exploring strategic reserves and local exploration in states like Karnataka and Jammu & Kashmir.
3. EV Manufacturing Hubs in India
India is quickly becoming a manufacturing hub for EVs—not just for domestic use, but for export to Europe, Southeast Asia, and Africa.
Hotspots include:
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Tamil Nadu: Home to Ola, Ather Energy, Hyundai
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Maharashtra: Bajaj Auto, Mahindra EV
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Gujarat: Tata Motors, Suzuki EV projects
Global automakers like Tesla, VinFast, and Hyundai are in discussions or early-stage production investments for India.
🔗 Related blog: Top Indian Cities for Distribution and Sourcing Agents
4. Software and Digital Innovation
EVs are not just machines—they are connected digital platforms. Indian firms such as Tata Elxsi, Bosch India, and KPIT are involved in:
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Battery management systems (BMS)
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Vehicle-to-grid (V2G) software
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Mobility apps and fleet management platforms
India’s IT and engineering services sector gives it a unique edge in EV digitization.
🌍 Integration into Global Supply Chains
India’s Export Capabilities Are Rising:
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Tata’s Nexon EV is already exported to Nepal, Bhutan, and parts of Africa.
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Bajaj Auto and TVS are shipping electric 2-wheelers globally.
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OEMs are forming tie-ups with Southeast Asian distributors to expand reach.
Foreign companies are also sourcing EV components from India thanks to:
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Lower production costs
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Skilled workforce
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Improved logistics infrastructure
🔗 Related: Opportunities in India’s Logistics Real Estate Sector
🧩 Key Challenges for India
While India is making progress, it still faces several hurdles:
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Limited raw material control (especially lithium, nickel)
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Underdeveloped charging infrastructure
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Complex import duties and regulatory frameworks
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Dependence on China and Korea for high-end battery components
Here’s where experienced sourcing and logistics agents in India can help foreign partners navigate customs, state-level policies, and supply chain complexity.
🔗 Discover how: How India-Agent.com Helps Global Companies Enter the Indian Market
🛡️ Government Policy Driving EV Supply Chain Growth
India’s commitment to building a full EV supply chain is backed by aggressive policy interventions:
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FAME II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme offers subsidies for EVs
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PLI for Auto and Component Manufacturing
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Tax incentives and 100% FDI allowed in EV manufacturing
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State-level EV policies in Delhi, Tamil Nadu, and Maharashtra
🔗 Department of Heavy Industries – FAME II
🧠 Role of Agents in Building Global Partnerships
Whether you’re a foreign EV firm looking to enter the Indian market or a global parts supplier aiming to find buyers in India, local agents are essential in:
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Vetting suppliers and manufacturers
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Navigating government approvals
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Coordinating logistics and trade compliance
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Facilitating cross-border dispute resolution
📈 What the Future Holds
India’s goal is clear: become a global hub for EV manufacturing and innovation. With initiatives to localize battery technology, scale up EV production, and participate in global value chains, India is well-positioned to contribute significantly to the green mobility transition.
As the world diversifies away from China-centric supply chains, India’s EV ecosystem is becoming an attractive alternative.
✅ Final Thoughts
India is no longer on the sidelines—it’s becoming a key player in the global EV supply chain. From raw material diplomacy to smart vehicle software and scalable manufacturing, India is offering global firms opportunities that are too significant to ignore.
For businesses looking to explore India’s EV ecosystem, having a reliable local partner or agent can make the journey smoother, faster, and more profitable.
🔗 Start building your EV supply chain in India with help from India-Agent.com