India Accelerates Push for Homegrown EV Components

India strengthens its electric mobility sector with a focus on domestic manufacturing of sintered rare earth permanent magnets. The government aims to reduce import reliance, promote sustainable growth and enhance technological capabilities in the energy and mobility sectors, supported by strategic interventions and policy initiatives.

India is bolstering its electric mobility sector by focusing on domestic manufacturing of sintered rare earth permanent magnets, critical for electric vehicles and other advanced technologies. Union Heavy Industries Minister HD Kumaraswamy announced this initiative at the 5th Global Electric Mobility Summit 2026, organized by the Society of Indian Automobile Manufacturers (SIAM).

The Rare Earth Permanent Magnets (REPM) scheme, approved by the Union Cabinet with a budget of Rs 7,280 crore, aims to diminish import dependency and enhance domestic production capabilities in high-tech sectors related to clean energy and mobility. Recent budgetary measures have also included customs duty exemptions for critical minerals manufacturing to support this goal.

Kumaraswamy highlighted that India's transition to electric mobility has evolved from concepts to execution, driven by policy coherence and production-linked incentives. He emphasized that electric vehicles signify a union of national goals such as cleaner growth and energy independence, aligning with Make in India and Atmanirbhar Bharat initiatives.

With a current valuation of USD 50 billion, India's automotive industry ranks as one of the fastest-growing globally. As the fourth-largest economy with a GDP of USD 4.18 trillion, India is poised to climb to third place by 2030, with a projected economic size of USD 7.3 trillion, exhibiting increased confidence and capacity.

Achieving net-zero emissions by 2070 is a top national agenda under Prime Minister Narendra Modi, where electric mobility plays a pivotal role. Commercial vehicles account for over 40% of transport pollution, necessitating targeted efforts to cut emissions.

India's electric vehicle market has seen robust growth, with a compound annual growth rate of over 60% in the past six years. Expected EV registrations for 2024-25 hover around 2 million units, majorly driven by electric two-wheelers, and passenger EVs have surpassed the 100,000 units milestone.

The rollout of electric buses and commercial fleets across regions signals a structural change in transportation, backed by the Ministry of Heavy Industries' Rs 2,000 crore allocation under the PM E-Drive scheme for establishing over 70,000 charging stations nationwide. The production-linked incentive (PLI) scheme, with a Rs 25,938 crore budget for automotive sectors, fosters deeper domestic production and global competitiveness.

The PLI initiative for Advanced Chemistry Cell batteries focuses on creating a 50 gigawatt-hour domestic manufacturing capacity, reducing dependency on imports, and positioning India as a significant player in global manufacturing. According to NITI Aayog, this shift not only offers environmental benefits but also delivers a multi-billion-dollar economic opportunity through innovations in service delivery and mobility solutions.

HD Kumaraswamy emphasized that India aspires from mere electric vehicle adoption to becoming a global leader, leveraging cooperation among policymakers, industry stakeholders, and innovators to build a resilient industry and sustainable economy. (ANI)

(With inputs from agencies.)