India will have to focus again on EV manufacturing, needs change in supply chain

New Delhi: Analysts believe that US President Donald Trump’s decision to impose 25% import duty on cars and auto parts will help India make necessary changes in its auto supply chain, especially in focusing on the electric vehicle (EV) manufacturing.

Inward sources in the industry said that although the direct car exports from India to the US are currently very low, the global tariff change will provide an important opportunity to give a new look to the vehicle supply chain. Make in India initiative has placed it in a special place for focusing on electric vehicle manufacturing.

This may lead to the current change in the auto export industry. And attracts more investment in local manufacturing. However, this can create a different situation, as the American car market will become less attractive for vehicle exports. Electric vehicles or electric vehicle components manufacturing companies (which have large manufacturing capabilities in countries like China, Korea, Japan and Vietnam) can find new export markets for their products. If this is not done, these companies may face a large amount of stock being useless.

The Center for Social and Economic Progress said that due to the increasing demand for quality electric vehicle products in the country, these companies will try to sell their products, especially electric vehicle components in India at a fast pace.

In 2023, inspired by the demand of countries like Nepal and France, India’s electric vehicle exports are expected to rise by 246.3% to Rs 100 crore on an annual basis. Its price has been fixed at Rs 1000. 2,139 crores It is estimated that India’s electric vehicle market will reach 10 million vehicles annually by 2030. Currently, India exports around 100,000 electric vehicles every year. It mainly contributes exports of two -wheelers and three -wheelers.

Recently, Finance Minister Nirmala Sitharaman announced that no import duty would be imposed on 35 capital goods for electric vehicle batteries in an attempt to rationalize customs duty. This development may motivate Asian companies to bring their products to India. India has the ability to occupy the export market at a short term with its existing products, but for this it will have to improve the quality of its products.