Euler Motors isn’t just striving to be a better EV company; it’s redefining the electric vehicle segment with a unique and ecosystem-led technological approach. The company focuses on innovation across multiple facets, including product design, charging infrastructure, mobility solutions, servicing, and financing. With a clear vision and persistent dedication to breaking barriers to mass EV adoption in India, Euler Motors aims to provide not just an alternative, but a superior and rewarding choice over traditional mobility solutions. Their approach emphasizes sustainability, business efficiency, and user-centric design, ensuring their offerings are beneficial for the planet, profitable for businesses, and enriching for people. Through relentless innovation, Euler Motors continues to set new benchmarks in the electric mobility space, paving the way for a cleaner, greener, and smarter future.
In a recent interview, Abdullah interacted with Gaurav Kumar, Head of Supply Chain and Manufacturing, Euler Motors in which he discussed about the factors that are contributing to India’s emergence as a global manufacturing hub for automakers, how is technology transforming supply-chain management in India’s automotive sector, current state of EV supply chains in India, and what are the key challenges hindering their growth, strategies that are essential for building a localized EV value chain in India that can outperform traditional ICE vehicles, How can the Indian EV industry reduce its dependence on imports for critical components like batteries and semiconductors.
1. What factors are contributing to India’s emergence as a global manufacturing hub for automakers, and how can the country sustain this momentum?
While the EV industry is still in its early growth stages, India’s emergence as a global manufacturing hub stem from a confluence of factors—rising EV demand, government incentives, a skilled workforce, and an expansive domestic market. The country’s ambitious target of achieving 30% electrification by 2030 underscores its commitment to transitioning towards sustainable mobility and further accelerates the sector’s growth. A stable investment climate, cost-effective manufacturing, and access to skilled labour further enhance India’s competitive edge, driving the acceleration of EV adoption.
To sustain this momentum, India must focus on fostering innovation and strengthening local capabilities. This includes enhancing research and development, adopting Industry 4.0 practices like automation and data analytics, and investing in workforce upskilling. Streamlined regulatory frameworks, consistent EV policies, and fostering collaboration between OEMs, suppliers, and policymakers are equally crucial. These efforts will ensure that India’s growth is not only rapid but also sustainable, securing its position as a global leader in automotive and EV manufacturing.
2. How is technology transforming supply-chain management in India’s automotive sector, particularly in improving efficiency and transparency?
Technology is revolutionizing supply-chain management in ways that were unimaginable a decade ago. Tools like advanced analytics, IoT, AI, and blockchain are enabling OEMs to achieve unprecedented levels of efficiency and transparency. These innovations facilitate real-time tracking of components, predictive maintenance to reduce downtime, and tamper-proof records through blockchain, enhancing security and trust across the supply chain.
For instance, predictive analytics provides actionable insights into consumer behaviour and operational performance, helping companies anticipate disruptions and optimize inventory. Blockchain ensures a transparent and secure flow of information across stakeholders, fostering collaboration and accountability.
Looking ahead, the adoption of Industry 4.0 practices, such as digital twins and smart manufacturing, holds immense potential to further enhance supply-chain resilience. These technologies streamline processes, improve accuracy, and build a more responsive ecosystem capable of meeting evolving market demands. By embracing these advancements, the automotive sector can position itself as a leader in global supply-chain innovation while addressing the complexities of a rapidly changing market.
3. What is the current state of EV supply chains in India, and what are the key challenges hindering their growth?
The EV supply chain in India has significantly matured in recent years, with the industry moving beyond its nascent stages. While the transition is still unfolding, the landscape is rapidly evolving, showcasing the potential for robust growth. However, there remains a need for investment in areas such as R&D, infrastructure development, and the establishment of a comprehensive battery value chain—from raw material sourcing to cell manufacturing and module assembly.
At Euler Motors, 95% of our vehicle components and 90% of our battery packs are sourced locally. This commitment to building from India, for India, ensures that our products remain not only competitive but also a testament to India’s manufacturing capabilities on the world stage. Through diversification of suppliers, alternative sourcing strategies, and our unwavering focus on R&D, we are creating a supply chain that is both agile and robust. This ensures we stay ahead of disruptions and continue delivering value to our customers.
Nevertheless, industry-wide efforts must prioritize establishing a complete battery value chain and investing in advanced manufacturing technologies to overcome bottlenecks. By focusing on innovation and partnerships, India’s EV ecosystem can build resilience, paving the way for a fully self-reliant supply chain that can sustain the industry’s rapid growth.
4. What strategies are essential for building a localized EV value chain in India that can outperform traditional ICE vehicles?
India’s established mechanical supply chain provides a strong foundation, but the EV industry required a specialized supply chain network for batteries, drivetrains, and power electronics. The focus should be on innovative battery assembly, increasing automation and standardisation. This will enable the production of vehicles on a large scale with consistent quality output across all deployments.
Companies should seek vendors willing to join them on their innovation journey. At Euler Motors, we have a vast network of over 300 suppliers who are growing with us in the EV segment. Moreover, considering the constantly changing trends in the global supply chain, companies must also be prepared to optimise and plan for potential contingencies. Building alternative strategies to tackle shortage problems, such as having an alternative vendor base and internal capabilities, can help prevent disruptions to production.
At Euler Motors, we have been working closely with suppliers from the R&D stage to localise our components and design EVs specifically for the Indian market. We do not retrofit; instead, we have built our products from the ground up, using a localised component, supply chain, and partnerships. As a result, we have already achieved 95 per cent localisation of our EVs.
5. How can the Indian EV industry reduce its dependence on imports for critical components like batteries and semiconductors?
The Indian EV industry is making steady progress toward reducing its reliance on imports for critical components like batteries and semiconductors. A combination of policies, local supply chain development, technological investment, and strategic collaborations is crucial to achieving this goal.
Government initiatives such as the Semicon India Programme aim to establish a robust semiconductor and display manufacturing ecosystem, offering up to 50% financial support for projects involving fabs, advanced semiconductor technologies, and chip design through the Design Linked Incentive (DLI) Scheme. Similarly, schemes like the Phased Manufacturing Program (PMP) and Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) are helping to localize essential components and build manufacturing capabilities.
For the EV sector, these initiatives enable suppliers to localize critical components like battery modules, power electronics, and semiconductors. However, achieving complete independence will require a focused effort to establish a comprehensive battery value chain and semiconductor production infrastructure. Collaboration between OEMs, suppliers, and policymakers, coupled with investments in R&D and advanced manufacturing hubs, will pave the way for a resilient and self-reliant EV ecosystem capable of sustaining the industry’s rapid growth.
6. How is Euler Motors achieving nearly 100% localization in its production process, and what lessons can other EV manufacturers learn from this approach?
At Euler Motors, we have actually pursued a localization strategy right from the start – where we brought in suppliers on board and worked closely with them to build the exact components we wanted for our vehicles. We also worked on developing our in-house capabilities for electronics, the parts which weren’t readily available. This helped us customize our electronics, which we could easily scale and integrate into other platforms – as and when needed. Our localisation levels from a component standpoint stand at 95% today for the vehicle and 90% for our battery packs (except for the cell).
To build and enhance localized EV manufacturing capabilities, it is important to focus on creating a robust ecosystem by supporting and collaborating with component manufacturers. Identifying key parts to localize, such as proprietary components, rubber parts, and electronics, and working closely with suppliers to ensure their processes meet high-quality standards, would aid in complete localization and avoid delays caused by third-party dependencies. Cross-functional coordination among finance, engineering, supply chain, and manufacturing teams further ensures process alignment and quality. Engaging with suppliers early in the product lifecycle ensures production demands are met. By sharing knowledge and technology with component manufacturers, OEMs can strengthen their localized EV manufacturing capabilities effectively.
7. How does achieving high levels of localization impact the cost competitiveness and adoption rates of EVs in India?
Achieving high levels of localization directly enhances cost competitiveness by reducing manufacturing expenses through economies of scale. Lower production costs make EVs more accessible to a wider audience, driving adoption in a price-sensitive market like India. Beyond cost, localization fosters innovation, enabling tailored solutions for Indian conditions—such as heat-resistant batteries and enhanced payload capacities—through localized R&D and manufacturing.
Government incentives like the PLI scheme play a significant role, particularly for component suppliers in the EV ecosystem. By encouraging suppliers to localize critical components, such as battery modules, power electronics, and drivetrains, the scheme reduces import dependence and ensures a steady supply of high-quality, cost-effective parts for manufacturers.
Collaboration across the industry is equally crucial. Companies are establishing manufacturing hubs and forming partnerships with local suppliers to maintain consistent production of critical components. As this ecosystem matures, it will further reduce costs, improve EV affordability, and position EVs as the preferred choice for consumers across India.
8. What does the future of EV manufacturing in India look like, and how can companies collaborate with policymakers to drive industry growth?
The future of EV manufacturing is poised for exponential growth, fueled by advancements in technology, increasing consumer awareness, and supportive government policies. India is uniquely positioned to become a global EV manufacturing hub, given its robust automotive industry, skilled workforce, and growing domestic demand for sustainable transportation solutions.
To fully realize this potential, collaboration between the private sector and policymakers is vital. Aligning consistent EV policies, such as incentives for manufacturing and adoption, subsidies for battery production, and streamlined approvals for charging infrastructure development, can accelerate industry growth. Joint efforts in R&D for indigenous components and battery technologies, along with partnerships to strengthen supply chains for critical materials like batteries and semiconductors, will enhance cost efficiency and bolster local ecosystems.
At Euler Motors, we see this as an era of opportunity. By working hand-in-hand with stakeholders, we aim to shape a sustainable future for the EV ecosystem, one that aligns industry growth with India’s clean energy goals.