The 5% figure, the first concrete metric from the recent ACMA trip, cracks open a long‑standing debate: India’s place in the global EV supply chain remains marginal.
While Tier‑1 players like Volkswagen Group, MAN and Scania are already embedded in the supply nets of Stellantis and other western giants, the 40 Indian firms that joined the tech days are still struggling to prove their reliability. Their products, ranging from simple electronics to complex powertrain components, appear to lack the consistency that buyers demand for high‑volume production.
Stellantis’ call for a similar engagement is no surprise; the western automaker is juggling a de‑risking strategy that leans heavily on proven suppliers. In practice, this means that the European brands will only tap into Indian parts that have already earned certifications and delivered under load. The ACMA director general, Vinnie Mehta, made it clear that while Tier‑1 suppliers are “world‑class,” Tier‑2 still sits on a question mark.
Volume is the linchpin. Mehta pointed out that Indian suppliers feed only 5% of the $76 billion EV market, and that small and medium enterprises will need “very attractive volumes” before they commit to the high capital stakes of EV production. The raw‑material side of the supply chain, from lithium to rare earths, is also under scrutiny, adding another layer of complexity for buyers who want a traceable, resilient source.
Looking ahead, the ACMA’s push to bring more Indian firms into the European fold could gradually shift the balance. As policy makers in India ramp up incentives for EV manufacturing, and as western automakers continue to diversify their supplier base, the gap between Tier‑1 stability and Tier‑2 aspiration may narrow. Buyers will watch for concrete steps such as joint‑venture agreements, capacity expansion commitments and certification milestones before they commit to Indian parts on a mass‑production scale.