Growth of India’s EV Component Market

India’s EV component industry is expanding at a remarkable pace as electric vehicle adoption rises and government incentives accelerate production. The market is expected to generate around Rs 72,500 crore by FY27 and is likely to cross Rs 1.5 lakh crore by 2030. Core components driving this growth include battery packs, power electronics, electric motors, and charging equipment.

However, the sector still depends significantly on imported technologies, especially for batteries, semiconductors, and advanced integrated circuits. OEMs, dealers, and EV startups are finding it challenging to manage inventory, navigate supply chain disruptions, and deal with unpredictable pricing of imported parts.

At the same time, investors and manufacturers are actively seeking clarity on how the electronic components market is evolving, the growing importance of power electronics, the expansion of the electric capacitor market, and new opportunities emerging in the electronic parts wholesale market.

This blog delivers a comprehensive, data-backed breakdown of market size, investment opportunities , and industry trends within the electronic components market, helping users make better decisions while also supporting transactional queries. It also explains how shifts in the electronic components market are shaping the future of India’s EV manufacturing landscape.

Market Overview: Why EV Components Are Booming?

India is rapidly emerging as a major global hub for EV manufacturing, driven by rising electric vehicle adoption, strong government incentives, and accelerated localisation across the value chain. The sector includes a wide range of critical parts such as batteries, BMS units, motors, controllers, ECUs, sensors, telematics modules, and power electronics, increasing the need for better management of electronic components inventory.

As of 2025, the Indian EV component market is valued at approximately $8–10 billion with a projected CAGR of 24–28%, while the EV-related electronic components segment stands at around $3.5 billion, supported by a strong import substitution trend. The electric capacitor market, valued at $450–500 million, is expanding quickly due to its crucial role in EV power electronics, and this growth is expected to continue as power systems become more advanced.

India’s broader EV power electronics market, estimated at $1.2 billion, is being propelled by the rapid adoption of electric two-wheelers and three-wheelers. With the nation aiming for 80% EV penetration in these segments by 2030, demand for high-performance components is surging across the ecosystem, further strengthening the significance of the electric capacitor market and highlighting the urgent need for optimised electronic components inventory management.

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Best EV Component Stocks to Buy

With investor interest surging in EV manufacturing and component innovation, this segment is opening strong equity investment opportunities . Below is a deeper look at the best electric car parts stocks to buy, with detailed insights for each company.

These players are positioned to benefit from rising EV adoption, supply chain localisation, and long-term OEM partnerships. This list also supports buyers and traders active in the electronic parts wholesale market, ensuring they understand where future value is being created.

1. Tata Elexi: Auto Electronics & EV Software EV Component

Tata Elxsi is one of the best electric car parts stocks to buy, thanks to its leadership in automotive electronics, EV software development, ADAS integration, and digital simulation tools.

The company plays a crucial role in EV design engineering, providing software platforms that help OEMs improve efficiency, safety, and performance.

2. HBL Power Systems: Batteries & Power Electronics

HBL Power Systems focuses heavily on advanced batteries, power electronic components, and energy storage systems. Its growing portfolio of EV-ready battery technologies and DC-DC converters makes it one of the best stocks to buy for investors looking for a long-term investment opportunity in India’s electrification journey.

3. Bharat Electronics Ltd. (BEL): Power Electronics & Control Systems

BEL is expanding strongly into EV-centric power electronics, onboard chargers, controllers, and smart control systems. Its government-backed manufacturing strength positions it well in the EV components supply chain, making it a solid addition to the best stocks to buy list.

4. Exide Industries: EV Batteries & BMS Collaborations for EV Component

Exide Industries is investing aggressively in lithium-ion battery manufacturing, battery pack assembly, and BMS joint ventures. With upcoming gigafactories and partnerships with global technology players, Exide is set to become one of India’s most dominant battery suppliers. Making a must-have stock in your portfolio

5. Amara Raja Energy: Lithium-Ion Pack Manufacturing

Amara Raja Energy is expanding into lithium-ion cell manufacturing with major investments in Giga-scale production. The company’s focus on next-generation chemistries and long-cycle-life cells positions it as a long-term leader in India’s fast-growing EV battery ecosystem.

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EV Component Market Opportunities, Challenges & Government Push

The rapid rise of electric mobility not only in passenger vehicles but also in two-wheelers, three-wheelers, commercial fleets, and last-mile delivery has created strong demand for localised, high-performance EV components.

Opportunities: A Fast-Expanding Supplier Ecosystem

The biggest opportunity lies in the aggressive shift toward domestic manufacturing of batteries, power electronics, thermal systems, drivetrain components, and advanced semiconductors. As the electric capacitor market expands rapidly, suppliers specialising in film capacitors, MLCCs, and electrolytic capacitors are seeing increased orders from EV OEMs, Tier-1 suppliers, and controller manufacturers.

The growing complexity of EV powertrains requires more capacitors for smoothing voltage, protecting circuits, and improving inverter efficiency, making this segment one of the fastest-growing in India.

Small and mid-size businesses in the electronic parts wholesale market are also benefiting as EV startups, garage-level retrofitters, and aftermarket players rely on readily available ICs, MOSFETs, relays, connectors, and capacitor components for prototyping, repairs, and small-batch manufacturing. The integration of telematics, sensors, controllers, and high-power modules has significantly widened the scope for electronics distributors.

Additionally, with localisation targets rising under the Production Linked Incentive (PLI) scheme, companies manufacturing battery packs, permanent magnet motors, BMS solutions, and power modules can gain a competitive advantage.

Challenges of Supply Chain, Costs & Technology Gaps of EV Component Market

Despite rapid progress, the industry faces several challenges. India still depends heavily on imports for lithium-ion cells, advanced IC chips, high-power semiconductors, and speciality capacitors, especially those required for high-voltage EV inverters. This dependence exposes manufacturers to global price volatility, long lead times, and disruptions in electronic components inventory.

Another major challenge is the technological gap in power electronics. For instance, SiC (Silicon Carbide)–based components, which are increasingly used in next-generation EVs, are expensive and not widely manufactured in India. The electric capacitor market also faces quality and durability issues due to the lack of domestic high-grade raw material production.

Small manufacturers and EV startups struggle to source reliable components consistently, pushing them to rely on the electronic parts wholesale market, which can vary widely in quality, testing, and certification standards. Establishing standardised supply chain systems and quality frameworks remains a crucial need.

Government Policies

The Indian government is playing a pivotal role in accelerating the growth of the EV component industry by creating a supportive policy framework, financial incentives, and long-term manufacturing ecosystems. These initiatives aim to strengthen local production capacity, reduce import dependency, and encourage technological innovation across the EV value chain.

One of the most impactful initiatives is the PLI Scheme for Advanced Chemistry Cells (ACC), which promotes large-scale domestic manufacturing of battery cells. By supporting cell-level production rather than just battery assembly, the scheme helps create a strong backward integration pipeline for batteries, one of the most critical and cost-heavy EV components.

Government support through FAME-II and the upcoming FAME-III subsidies has significantly boosted EV adoption in India. These incentives indirectly increase demand for motors, controllers, drivetrain electronics, chargers, and power electronics.

This comprehensive policy push is accelerating India’s transition into a self-reliant and high-growth electronic component Inventory.

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Conclusion

The electric vehicle component market in India is entering a high-growth, innovation-led era, supported by strong government policies, accelerating EV adoption, and rapid localisation of core technologies. As demand rises for batteries, power electronics, sensors, motors, and advanced capacitors, the ecosystem is becoming more mature and self-sustaining.

Segments like the electric capacitor market are set to expand rapidly as EVs require higher power density and more efficient inverter systems, while the electronic parts wholesale market will continue playing a crucial role in supplying critical ICs, MOSFETs, connectors, and controllers to OEMs and startups.

Looking ahead, India can expect deeper advancements in cell manufacturing, semiconductor development, AI-driven BMS solutions, and automated EV supply chains. With gigafactories, dedicated EV clusters, and rising domestic production capacity, India is well-positioned to evolve into a global hub for EV components.

Investors who are constantly looking for smart investment opportunities, this is a good time to invest in the electronic components market, as the future looks promising and bright for EVs in India.

Frequently Asked Questions

1. What is the size of the EV component market in India?

The EV component market in India is estimated at $8–10 billion in 2025 and is projected to grow at a 24–28% CAGR through 2030. Battery packs, motors, controllers, and power electronics are the largest contributors. This rapid expansion is closely linked to the rising demand in the electronic components market, driven by EV adoption and localisation.

2. What is the 80% rule for EV?

The 80% rule for EVs suggests that EV owners should regularly charge their battery only up to 80% instead of 100% for daily use. This helps extend battery life, reduce degradation, maintain optimal performance, and improve long-term charging efficiency. Charging to 100% is recommended only for long trips where maximum range is needed.

3. Where are EV components made?

EV components are manufactured across major industrial hubs in Tamil Nadu, Karnataka, Maharashtra, Gujarat, and Uttar Pradesh. These regions produce batteries, motors, controllers, sensors, and power electronics. Many startups and Tier-1 suppliers also assemble parts locally while importing chips and cells. Efficient management of electronic components inventory is essential due to ongoing dependence on global suppliers.

4. What percentage of the market share is EV?

Electric vehicles currently account for around 7.8% of total vehicle sales in India as of FY 2025. This share reflects steady growth driven by rising demand, government incentives, and expanding charging infrastructure. While still a small portion of the overall automotive market, EV adoption continues to accelerate as manufacturers introduce more affordable and efficient models for Indian consumers.