Compared to the passenger or heavy commercial vehicles, the total cost of ownership is likely to be more attractive for electric two and three-wheelers in India, the report added.
The report, released on the sidelines of the 62nd annual session of ACMA, noted, "Sales of new electric two (2W) and three-wheelers (3W) could grow to 50 and 70 per cent, respectively by 2030."
However, internal combustion engines (ICE) will continue to dominate the Indian passenger and heavy commercial vehicle landscape, with slower electrification, the report said.
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It further added that electric passenger vehicles and heavy commercial vehicles are expected to account for 10-15 per cent and 5-10 per cent of new vehicle sales, respectively by 2030.
Early estimates suggests a a transition to EVs could impact up to 50 per cent of ICE bill of material (BOM) components, though it may disrupt the portfolio of incumbents in traditional ICE component categories, the report said.
Meanwhile, this disruption may create opportunities for multiple whitespaces for companies to cater to the new EV BOM needs and generate avenues to serve markets outside India in both ICE and EV component categories.
According to the report, India and China are likely to lead the overall automotive space with sales of passenger vehicles expected to rebound to peak levels by middle of this decade. Despite near-term supply disruptions, the long-term prospects for the industry remain strong.
Suggesting reforms, the report said that the domestic auto component industry needs to expand exports by diversifying beyond traditional geographies in order to benefit from the changing industry landscape.
"Specifically for tapping the exports opportunity, a dedicated multi-stakeholder task force (comprising ACMA, SIAM and the Government) could systematically enable and empower industry players through OEM connects, cross-border M&A, shifting of manufacturing, policy support, trade agreements," the report stated.
The success of auto component manufacturers in the face of EV-linked disruptions would not only enhance their growth and relevance, but also be a boost for India, the report said, adding, it would consolidate India's position on the world map as a future-ready hub for manufacturing.
"This calls for a concerted effort by all stakeholders – across the government, industry bodies, OEMs and suppliers. Each of these could be a crucial enabler in helping the industry to prepare for its next phase of growth," it stated.
With PTI inputs.
