India’s auto sector urged to deepen local design and EV value addition
Heavy Industries Minister H D Kumaraswamy called for greater domestic design and value addition in EVs. Industry leaders pointed to PLI-backed investment, rising component exports and stronger FY27 demand, while Maruti Suzuki flagged cybersecurity readiness as a priority.
What happened
India automotive industry · Heavy Industries Minister H D Kumaraswamy urged India’s auto sector to increase domestic design and value addition for EVs. Industry
Key facts
- ₹45,477 crore investment reported by PLI-approved applicants as of June 30, 2026
- Over 67,000 employment opportunities
- 15-20% growth across automobile categories in the second half following GST 2.0
- ₹7.60 lakh crore auto-components industry turnover in FY26
- Around $24 billion auto-components exports in FY26
Why this matters
Prioritize acquisitions, joint ventures and technology partnerships in domestic EV components, battery systems, software and automotive cybersecurity to build a higher-value local ecosystem.
What to watch
- PLI disbursement pace and new incentives for battery cells, semiconductors, charging equipment or automotive software
- Domestic-content requirements in central and state EV procurement policies
- Announcements of Indian R&D centers, localized EV architectures, battery-pack plants and component JV investments
- EV penetration in passenger vehicles, two-wheelers, commercial fleets and fleet-financing approval rates
- Import trends for cells, magnets, chips and power electronics versus domestic production capacity
- Automotive cybersecurity standards, mandatory compliance timelines and reported vehicle software incidents
- Dealer inventory levels, retail finance delinquencies and discounting trends entering FY27
- OEMs will increase investment in India-based R&D, vehicle software, battery-pack engineering and localized EV platforms.
- Tier-1 and Tier-2 suppliers will pursue joint ventures, technology licensing and acquisitions in power electronics, BMS, thermal management, telematics and cybersecurity.
- Dealership groups will add EV-trained service capacity, charging alliances, battery diagnostics and digital financing products.
- OEM procurement teams will favor suppliers able to meet traceability, cybersecurity, functional-safety and export-quality standards.
- Component exporters will target markets seeking lower-cost alternatives to China-centric supply chains.