IGI Logo

Crisil in its latest report has said that auto component industry is expected to see 9-11 per cent of its revenue coming from EV (Electric Vehicle) parts by 2027 amid increasing electrification. It said this growth will come even as the supply of parts for the conventional internal combustion engine-driven vehicles will also grow during the period. It noted that EV components' share in the sector's overall revenue during last fiscal stood at a meagre 1 per cent.

According to the report, revenue of the electric vehicle components is likely to rev up at a compound annual growth rate of around 76 per cent to Rs 72,500 crore in fiscal 2027 from Rs 4,300 crore last fiscal.  It forecasted that as much as 60 per cent of this revenue is expected to come from the battery segment and 15 per cent each from drivetrains and electronics, with 90 per cent of the EV component supplies likely to be for two-wheelers and PV (Passenger Vehicle) segments.

The report said an analysis of 220 manufacturers, which account for a-third of the auto components market, indicates the transition to EVs will create both opportunities and challenges for domestic auto component makers. It added that EV components such as batteries, drivetrains, electronics and others present an opportunity for auto component makers to diversify their revenue base beyond ICE (Internal Combustion Engine) vehicles.