India is fast becoming a pivotal player in the global automotive manufacturing landscape, driven by its vast market potential, skilled workforce, and government incentives promoting innovation and sustainability. The rise of electric vehicles (EVs) in India further highlights the country’s potential to lead the transition toward greener transportation solutions. However, challenges such as dependency on imports for critical EV components and a fragmented supply chain still pose hurdles.
In this in-depth Q&A, Gaurav Kumar, Head of Supply Chain and Manufacturing at Euler Motors, provides a detailed perspective on India’s journey as a manufacturing hub for the global automotive industry. He addresses key questions about the factors enhancing India’s appeal, the state of EV supply chains, and strategies for overcoming the sector’s challenges. From discussing localization efforts to minimizing dependency on imports, Gaurav shares valuable insights into the roadmap for sustainable growth in India’s EV ecosystem.
With a focus on innovation and advanced technologies, Gaurav also sheds light on Euler Motors’ manufacturing processes and approaches that have enabled the company to establish itself as a leader in the evolving EV landscape. This conversation is a must-read for anyone looking to understand the future of automotive and EV manufacturing in India.
What key factors contribute to India’s growing appeal as a manufacturing hub for global automotive companies?
India’s growing appeal as a global automotive manufacturing hub is driven by a combination of opportunity, capability, and innovation. A thriving domestic market, cost-effective production, and a skilled, adaptable workforce have laid a strong foundation for global investments. Government initiatives like “Make in India” and the push for 30% electrification by 2030 demonstrate India’s commitment to sustainable mobility, attracting global players who want to align with future-ready markets.
India’s robust supplier ecosystem is evolving rapidly, with Tier 1 and Tier 2 suppliers investing in EV-specific components such as battery management systems, motors, and power electronics. This creates a reliable supply chain, essential for scaling production.
The integration of Industry 4.0 technologies—including automation, AI, and IoT—enables companies to boost efficiency, streamline operations, and maintain global standards in product quality. By combining innovative local solutions with scalable infrastructure, India is positioning itself as a key player in the global automotive and EV markets, offering manufacturers the opportunity to meet both domestic and international demand.
What is the current landscape of EV supply chains in India, and what are the primary challenges limiting their growth?
India’s EV supply chain has matured significantly, with key components like battery packs, drivetrains, and power electronics increasingly being sourced locally. However, the sector still faces challenges, particularly in battery cell manufacturing and access to critical raw materials like lithium and semiconductors, which remain largely import-dependent.
At Euler Motors, we have addressed these gaps by achieving 95% localization in vehicle components and 90% in battery packs, showcasing the potential of India’s manufacturing ecosystem. Collaboration with suppliers during the R&D phase allows us to co-create solutions that are tailored to local requirements while driving innovation.
To overcome the remaining challenges, India needs continued investments in infrastructure, R&D, and advanced manufacturing capabilities. Building a comprehensive battery value chain—from raw materials to assembly—along with government support through programs like PLI and Semicon India, will be pivotal. By fostering resilience and innovation, India’s EV supply chain can evolve into a globally competitive ecosystem.
How do you envision the EV supply chain in India evolving to support sustainable growth in the sector
For India’s EV sector to achieve sustainable growth, the supply chain must prioritize localization, innovation, and resilience. A greater focus on domestic production of critical components like battery cells, power electronics, and drivetrains will reduce import reliance and shorten supply chains, improving resource efficiency and lowering environmental impact.
Technological advancements will play a key role. Investments in green technologies, such as sustainable battery materials, recycling ecosystems, and energy-efficient manufacturing processes, will ensure that growth is environmentally responsible. Additionally, automation and AI-driven analytics will enhance supply chain visibility and efficiency, minimizing wastage and disruptions.
Collaboration is essential. By fostering partnerships between OEMs, suppliers, and policymakers, the industry can scale production, improve infrastructure, and develop innovative solutions to challenges. As the ecosystem matures, the integration of circular economy practices—like battery recycling and reuse—will further strengthen sustainability.
India has the potential to build a resilient, future-ready EV supply chain that not only supports domestic growth but also positions the country as a global hub for clean and efficient mobility solutions.
How dependent is the Indian EV industry on imports for critical components such as batteries and motors, and what steps can be taken to minimize this reliance?
The Indian EV industry remains largely dependent on imports for critical components like battery cells, motors, and semiconductors. While progress has been made in localizing vehicle assembly and battery pack design, the absence of a domestic battery cell manufacturing ecosystem and the reliance on global semiconductor supply chains remain key challenges.
To minimize this reliance, initiatives like the Semicon India Programme and the Phased Manufacturing Program (PMP) play a critical role in supporting domestic production. By offering financial incentives and fostering innovation, these policies encourage local suppliers to scale up capabilities for producing batteries, power electronics, and semiconductors.
At an industry level, greater investments in R&D, advanced manufacturing technologies, and raw material processing are essential. Building a complete battery value chain, from raw material refining to module assembly, will reduce import dependency. Strategic collaborations between OEMs, suppliers, and policymakers can further accelerate this transition, enabling India to develop a resilient and self-reliant EV ecosystem.
Can you walk us through your manufacturing process and highlight any advanced technologies that set it apart?
Euler Motors’ manufacturing process is designed for efficiency, quality, and innovation, ensuring our EVs meet the highest standards. Our 500,000 sq. ft. facility in Palwal, Haryana, with an annual capacity of 36,000 vehicles, integrates advanced technologies that set it apart.
The facility features automated assembly lines, including EMS Hanger systems and vacuum-based brake oil filling machines, which optimize production and reduce errors. A proprietary Manufacturing Execution System (MES) tracks the vehicle lifecycle, ensuring stringent quality control from production to delivery.
Each vehicle undergoes thorough testing, including dyno-testing and performance evaluations on full-length testing tracks. Our in-house R&D center focuses on proprietary innovations like liquid-cooled battery packs, thermal management systems, and chassis development, tailored specifically for Indian conditions.
Certifications like ISO 9001, ISO 14001, ISO 45001, and IATF 16949 reinforce our commitment to quality, environmental responsibility, and workplace safety. This blend of advanced automation, innovation-driven R&D, and stringent quality checks ensures that Euler Motors remains a leader in the commercial EV sector.
What specific approaches has Euler Motors adopted to successfully navigate localization challenges in the EV ecosystem?
Navigating localization challenges in India’s evolving EV ecosystem requires a blend of innovation, collaboration, and strategic planning. At Euler Motors, we adopted a ground-up approach by working closely with suppliers to co-develop components tailored for electric vehicles.
Early on, we recognized gaps in the availability of battery packs, electronic components, and advanced drivetrains. To address this, we focused on building a robust network of over 300 local suppliers, collaborating with them during the R&D phase to create solutions that align with both performance and cost expectations.
Additionally, our focus on in-house capabilities for critical systems—like battery thermal management and chassis design—enabled us to reduce reliance on imports and enhance product quality. We also employ diversified sourcing strategies to ensure consistent production, even during disruptions.
By combining long-term partnerships, technological innovation, and a strong commitment to “Made in India,” we have achieved 95% localization for vehicle components and 90% for battery packs. This success highlights the importance of collaboration and innovation in overcoming localization challenges and strengthening India’s EV ecosystem.
