Innovation and IP documentation key for Indian auto ancillaries' successful shift to electric mobility: Haryana Govt official
Gurugram, July 17
Sanjeev Chawla, Additional Development Commissioner, MSME DFO, Karnal, Government of Haryana, said that as NITI Aayog has projected that electric vehicle penetration in India is set to rise to 30 per cent by 2030, the industry must invest in innovation to capture the "massive opportunity" for the domestic automotive supply chain.
Speaking at the EV Ancillaries and Auto Components Conclave 2026 organised by ASSOCHAM Northern Region in Gurugram, Chawla said that electric vehicle component manufacturers must innovate, document intellectual property (IP), and scale up to capture India's EV opportunity.
He said long-term industry success relies heavily on creating proprietary technology and leveraging government support mechanisms.
"To capture this opportunity, industry must invest in innovation, document it properly, and file for IPR and patents, for which the government offers significant grants and incentives," Chawla said.
"Wealth creation and real growth come only through innovation -- traditional manufacturing can sustain a business, but true growth demands continuous innovation, a stronger focus on quality through lean manufacturing and Industry 4.0 tools, and greater support for Indian component manufacturers so that India's EV supply chain is built at home rather than imported," he added.
NITI Aayog has recently projected that electric vehicle penetration in India is set to rise to 30 per cent by 2030, presenting a significant shift for the domestic automotive supply chain.
Chawla said, "Electric vehicle penetration in India currently stands at around 8.5%, translating to nearly 50 lakh vehicles, and this is set to rise to 30% by 2030 -- just four years away. This represents a massive opportunity, and enterprises must ask themselves where they can fit into the value chain, whether in suspension systems, battery management systems, switches, harnesses, or BLDC motors."
The operational shift from internal combustion engines to electric powertrains alters the manufacturing landscape drastically. M K Sardana, Co-ordinator, Department of Industries and Commerce, Government of Haryana, detailed the structural changes confronting auto component manufacturers.
"A conventional fossil fuel vehicle has nearly 2,000 moving parts, while an electric vehicle has only about 18," Sardana said. "As per a NITI Aayog report, 30% of all vehicles on Indian roads will be electric by 2030 -- and 2030 is not far away, just four years from now. Enterprises connected with conventional automobiles must gear up accordingly, including on the financial side, since the battery alone accounts for nearly one-third of an EV's cost and is manufactured by very few players."
Sardana noted that Haryana actively supports the transition through structured policy frameworks, citing the Invest in Haryana 2026 umbrella policy and the existing EV policy that runs until 2027, with an exclusive MSME policy expected within a month.
Ajay Mohan Goyal, Joint Director, Department of Industries and Commerce, Government of Haryana, stated that the future of the automotive industry depends on building a competitive electric mobility ecosystem rather than just manufacturing volumes.
He noted that electric vehicles are a thrust sector under the Haryana Industrial Policy 2026, leveraging the state's existing strength of producing nearly 50 per cent of cars and 60 per cent of motorcycles in India.
— ANI
Reader Comments
The reduction from 2000 moving parts to just 18 is mind-boggling! 😮 But that also means less aftermarket business for repair shops. The entire ecosystem needs to be reimagined. Haryana being a manufacturing hub makes sense for this transition though. 🇮🇳
These conclaves are all well and good, but ground reality is different. We need affordable battery recycling and charging infrastructure first. Without that, even the best IP won't sell. Also, what about the skills retraining for workers who'll lose jobs in ICE manufacturing?
Haryana already making 50% of cars and 60% of motorcycles is no small feat! 🚗 If EV policy runs until 2027 and a new MSME policy is coming, this could be a game-changer for local suppliers. Just hope bureaucracy doesn't slow down the grant disbursement process.
NITI Aayog's 30% by 2030 target seems ambitious but achievable if we get the supply chain right. Battery making up 1/3rd of EV cost is a huge concern though. We need local gigafactories to bring costs down, not just component manufacturing.
Appreciate the focus on IP documentation - Indian companies often neglect patents. But let's be honest, most auto ancillaries are MSMEs with limited resources. The government should create shared innovation centers or patent filing support cells in industrial clusters.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.