Make or buy: Electric vehicle makers' supply chain dilemma in India

With China dominating this space, companies have a critical decision to make as the market steadily expands

With a million-odd electric vehicles (EVs) — two-wheelers, e-rickshaws, buses and passenger cars — expected to hit the road this calendar year, the shift from gasoline-powered vehicles has become irreversible. Now the question is whether the supply chain is ready for this shift.

Key components — the high-powered lithium-ion battery and the cells which go with it, the electric motor, and the electronics powered by chips — account for nearly 60 per cent of the cost of an EV. Most of them were never used in gasoline-powered vehicles.

EV manufacturers have a critical decision to make: whether to make these key components