To support India’s journey to electrification, auto component makers will make investments of Rs 25,000 crore in 3-4 years to make components for the electric vehicle industry.
This capital expenditure will be used for capacity building, technology and product enhancements, research and rating agency ICRA said on Tuesday. About 45-50% of this, would be towards battery cells.
“The PLI (production linked Incentive) scheme, recent e-vehicle policy and state incentives would also contribute to accelerating capex. The larger projects (especially for battery cell localisation) are expected to be funded partly by debt initially,” Shamsher Dewan, Senior Vice President and Group Head – Corporate Ratings, ICRA said.
