INDIA'S EV INDUSTRY GAINING MOMENTUM
EM - Efficient Manufacturing|June 2023
By 2030, nearly one in three vehicles in India will be electric, and one in ten EVs sold worldwide will be in India. However, the Indian EV industry is still in its early stages. Specialised service providers can help them increase the efficiency of their production and reach the next level of technology and collaboration.
Sudhir Gurtoo, Dr Christoph Jaschinski
INDIA'S EV INDUSTRY GAINING MOMENTUM

Decreasing Battery Costs

The costs of a battery system accounts for the largest share of the manufacturing costs of a vehicle, up to 30%–40% of total manufacturing costs. This is a challenge for acceptance in India, where, in addition to innovation, the price of the vehicle is the most important purchase criterion. Therefore, all current forecasts show a faster spread of EVs in the two-wheeler segment than in the passenger car segment.

However, with the new process technologies, the manufacturing costs per kWh will decrease during the next few years due to the further development of new materials and their application technologies, irrespective of the location of the plant. The processes in battery cell production are not yet as industrialised as the assembly processes for ICEs. With new R&D centres in India and Southeast Asia, the manufacturing costs for cells will decrease, which will suit the price sensitivity of Indian customers.

Localise Car Assembly

Another possibility to reduce costs is to localise car assembly. Today, good imported electric cars are subject to high taxes. As soon as the production is localised, these barriers will become less relevant.

Ramping up production facilities for EVs and even more for cell production will therefore be a crucial factor in the transformation of the automotive industry in India. Major Indian automakers such as Tata Motors, Mahindra & Mahindra, Hyundai Motor India and Maruti have announced significant investments and are trying to make a leap. International manufacturers like Stellantis, Toyota, Audi, BMW, and others are also mulling new facilities for EV manufacturing.

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