Make in India to Engineer in India: EV Localisation Beyond Assembly
India's electric vehicle (EV) ambitions are at a crossroads. While the "Make in India" initiative has successfully attracted global automakers to set up assembly plants, industry analysts say the next leap must be "Engineer in India." The shift demands localisation that goes beyond bolting together imported kits. According to The Times of India, the government's latest production-linked incentive (PLI) scheme for advanced automotive technology has earmarked ₹25,938 crore to boost domestic manufacturing of electric and hydrogen fuel-cell vehicles. However, analysts caution that without deep localisation of critical components—batteries, motors, and power electronics—India risks becoming merely an assembly hub.
The current landscape reveals a stark gap. While EV sales in India crossed 1.5 million units in 2023, a significant portion of the value addition still happens overseas. Battery cells, the heart of any EV, are predominantly imported from China, South Korea, and Japan. According to the source, India's lithium-ion battery imports surged to $2.2 billion in 2023, underscoring the dependency. Local assembly of battery packs exists, but cell manufacturing is still nascent. Analysts say that without domestic cell production, India's EV supply chain remains vulnerable to global disruptions and currency fluctuations.
"The real test of Make in India is not how many EVs are assembled here, but how many are engineered here—from cell chemistry to software." — analysts say.
To address this, the government has launched several initiatives. The PLI scheme for advanced chemistry cell (ACC) battery storage aims to establish 50 GWh of domestic cell manufacturing capacity by 2025. Additionally, the Faster Adoption and Manufacturing of Electric Vehicles (FAME) II scheme has allocated ₹10,000 crore to promote electric mobility. Yet, progress on the ground is uneven. According to the source, only a fraction of the ACC PLI capacity has been commissioned so far. Industry experts point out that setting up a gigafactory requires massive capital, technical know-how, and a stable policy environment. Without these, India may continue to rely on imports for years.
Beyond batteries, localisation of electric motors and power electronics is equally critical. India has a robust base in conventional automotive components, but EV-specific parts require different skill sets and precision manufacturing. The source notes that several Indian companies have begun forging partnerships with global firms to transfer technology. For instance, Tata Motors has partnered with Ford to manufacture electric motors in India, while Mahindra & Mahindra is investing in local production of battery packs and controllers. These are positive steps, but analysts say the scale is still small compared to the market potential.
| Parameter | Data |
|---|---|
| PLI scheme for advanced automotive technology | ₹25,938 crore |
| EV sales in India (2023) | 1.5 million units |
| Lithium-ion battery imports (2023) | $2.2 billion |
| ACC battery storage target by 2025 | 50 GWh |
| FAME II scheme allocation | ₹10,000 crore |
The road to "Engineer in India" also requires a skilled workforce. India produces a large number of engineers, but specialised training in EV technologies is limited. The source highlights that the government has set up centres of excellence in collaboration with industry to bridge this gap. However, analysts say the pace needs to accelerate. Countries like China and South Korea have built their EV ecosystems over decades with sustained investment in R&D and education. India must do the same to compete globally.
Moreover, localisation must extend to software and electronics. Modern EVs are essentially computers on wheels, with software controlling everything from battery management to autonomous driving features. India's strength in IT and software services can be leveraged to develop EV software locally. The source mentions that several Indian startups are already working on battery management systems and telematics. With the right policy support, this could become a major export opportunity.
In conclusion, India's EV journey must evolve from assembly to deep engineering. The numbers from the source—₹25,938 crore PLI, 1.5 million EV sales, $2.2 billion battery imports, 50 GWh ACC target, and ₹10,000 crore FAME II—paint a picture of both progress and challenge. To truly become an EV manufacturing powerhouse, India needs to localise the entire value chain, from cells to software. Only then can "Make in India" transform into "Engineer in India."
For more insights on India's EV ecosystem and localisation trends, visit AutoVerse.