India’s electric vehicle (EV) industry is at a pivotal juncture, and the message from top industry leaders at the 2025 India EV Conclave is clear: deep localization is not optional—it’s essential. As the country accelerates toward a cleaner, self-reliant mobility future, stakeholders across the EV value chain are rallying behind a common goal: building a robust, indigenous ecosystem that can compete globally while serving local needs.
🔧 Why Deep Localization Matters
At the heart of the localization push is the need to reduce dependence on imports, especially for critical components like battery cells, power electronics, and rare earth magnets. Executives from Continental, Lumax Auto, Gulf Oil, and other key players emphasized that India must move beyond assembly and become a technology-driven manufacturing hub.
Localization not only strengthens supply chain resilience but also aligns with India’s broader goals of economic self-reliance, job creation, and export competitiveness. With the auto component industry already growing at a CAGR of 14% and reaching $80.2 billion in FY2025, the foundation is strong.
🏭 Building the EV Value Chain
The panel discussion titled “Building the EV Value Chain: The Road to Deep Localisation” at the Autocar Professional EV Conclave spotlighted several key strategies:
- Investing in domestic R&D to develop core technologies
- Scaling up local production of battery packs, motors, and controllers
- Creating tiered supplier networks to support OEMs
- Fostering public-private partnerships for infrastructure and policy support
Industry leaders also stressed the importance of software development, particularly for vehicle control systems and battery management. As EVs become increasingly software-defined, India’s IT prowess can be a strategic advantage.
🌱 Policy Support and Government Vision
Government initiatives like the Production Linked Incentive (PLI) scheme, FAME II, and Make in India have laid the groundwork for localization. However, industry voices are calling for long-term policy clarity, stable incentives, and streamlined regulatory frameworks to sustain momentum.
The ETAuto EV Conclave 2025 echoed these sentiments, with themes like “Accelerating India’s EV Leap” and “Infrastructure Readiness” taking center stage. Policymakers and industry leaders agreed that localization must be supported by charging infrastructure, battery recycling ecosystems, and skilled workforce development.
📊 Market Dynamics and Growth Potential
India’s EV market is projected to grow from $2 billion in 2023 to $7.09 billion by 2025, with annual sales expected to reach 10 million units by 2030. This explosive growth demands a supply chain that can scale rapidly and sustainably.
Localization also opens doors for cross-border expansion, with Indian firms eyeing markets in Southeast Asia, Africa, and Latin America. By building competitive capabilities at home, India can become a global EV export powerhouse.
🚗 Challenges on the Road Ahead
Despite the optimism, several challenges remain:
- High capital requirements for setting up advanced manufacturing
- Limited access to raw materials, especially lithium and cobalt
- Fragmented supplier base lacking scale and specialization
- Technology gaps in areas like cell chemistry and thermal management
Industry leaders called for collaborative innovation, where OEMs, startups, academia, and global partners work together to bridge these gaps.
🔮 Conclusion: A Collective Mission
The call for deep localization is more than an industry trend—it’s a national imperative. As India races toward its EV goals, the focus must shift from short-term assembly to long-term capability building. The 2025 EV Conclave made it clear: the future of India’s EV industry depends on how quickly and effectively it can localize.
With the right mix of policy support, industry collaboration, and technological investment, India is poised to not just participate in the global EV revolution—but to lead it.