EV parts market to touch ₹72,500 crore by 2027

Chennai: India’s electric vehicle component market will touch ₹72,500 crore in fiscal 2027, says a latest report by Crisil Research. The segment will grow at a compounded annual growth rate (CAGR) of around 76%.
The EV component market was just ₹4,300 crore in FY21-22. As the revenues revv up, the electric vehicle share in India’s overall auto component market will hit 9-11% by fiscal 2027, up from a negligible 1% currently, said the report.
Said Pushan Sharma, director, CRISIL Research, “Among the key auto segments, two-wheelers and passenger vehicles (PVs) are seen driving the transition to electric, with their penetration rising to 19% (from over 2.5% currently) and 7% (from less than 1% currently) respectively, over the next five fiscals.” Commercial vehicles, the other large auto segment, will see far lower penetration at around 3% compared to 0.3% currently because of unfavourable economics, added Sharma.