The EV Supply Chain Opportunity: Why Canadian Auto Component Manufacturers Should Look to India

Image of an EV Charging Station

India’s National EV Targets

India aims for 30% EV penetration in passenger vehicles by 2030, along with ambitious adoption targets for two‑ and three‑wheelers (70% and 80%, respectively), backed by initiatives like Indian Govt's Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) and the Production Linked Incentive (PLI) scheme. The Indian government is mobilizing approximately USD 8 billion in incentives to build local EV and battery supply chains. 

This surge in policy support is expected to drive demand for auto components—including motors, control systems, sensors, and lightweight structures—into the tens of millions of units annually.

Demand-Supply Gap in Tier‑2 / Tier‑3 Components

Despite rising EV ambitions, India still controls only about 3% of the global auto components trade, signalling a massive growth opportunity. Local Tier‑2/3 suppliers are scaling up—greater government focus has "flattened" supply chains, allowing them to deal directly with OEMs. 

Yet challenges remain. Critical shortages of rare‑earth magnets—key to EV motor production are impeding manufacturing, as China’s export cuts create bottlenecks. Moreover, on the ground reports note limited domestic capacity in areas like battery‑cell components and precision electronics. Combined, these create gaps as India tries to localize its EV supply chain.

How Canadian Manufacturers Can Step In

Canadian precision manufacturing strengths, especially in metal forming (copper wire, tubing), auto/EV components, and farm equipment attachments are a natural fit for addressing India’s Tier‑2/3 gaps. Here’s how:

• Supplying critical Tier‑2 parts: Canadian copper cable, wiring harnesses, motor components, and precision sheet-metal parts align with India’s urgent needs in EV drivetrain and assembly.

• Partnering with OEMs & Tier‑1s: Canada's adherence to tight quality and regulatory standards positions you well for supplying Indian OEMs (e.g., Tata, Mahindra, Maruti, Ola, EKA Mobility) and Tier‑1 integrators like Motherson and Sona Comstar. 

• Capability localization via joint ventures: Canada’s strengths in quality assurance, environmental standards, and tech integration can support local Indian facilities—accelerating OEMs’ time‑to‑market and reducing supply vulnerability tied to China.

At Supply Connect, we empower Canadian auto and EV component manufacturers to bridge India’s Tier‑2 and Tier‑3 supply deficits, offering customized market entry strategies, distributor sourcing, compliance support, and on‑the‑ground representation. Capitalize on India’s EV surge and secure first‑mover advantage from day one.

Case in Point

Canadian copper wire producers can supply OEMs constructing electric drivetrains in Pune or Chennai. Partnering with a Canadian firm can accelerate precision components’ localization helping OEMs circumvent rare‑earth bottlenecks and foster greater supply resilience.

Ready to Scale Into India?

Interested in expanding your auto or EV component business into India? Let’s discuss your market-entry options from distributor partnerships to JV frameworks. Reach out today to explore how Supply Connect can help you navigate India's booming EV landscape.