Chennai: The depreciation of the rupee has started pinching electric vehicle (EV) companies in India as these have 40-45% imported components with a direct dollar link. Further, despite the EV boom, the comparatively smaller numbers mean that Indian electrics players do not have the price advantage that big auto OEMs have when sourcing microchips and semiconductor parts from global suppliers.
While EV makers are holding their prices for now, a round of markups are right round the corner if the currency fluctuation continues.
Society of Manufacturers of Electric Vehicles (SMEV) director-general Sohinder Gill said, “There are a number of components like cells, chips and permanent magnets that form 40-45% of the vehicle and which are imported, thereby having a direct effect due to the rupee volatility. As a result, there will be a 7-10% increase in cost pressure due to rupee depreciation on EV companies.”
