Maharashtra, Haryana bear brunt of EV transition: One-third of component suppliers to be hit, claims study

A recent study conducted by the International Forum for Environment, Sustainability and Technology (iFOREST), highlighted the multifaceted challenges and opportunities posed by the shift to EVs for businesses, workers, and the environment. The study is claimed to be the first country-wide research on the flipside of transitioning to electric vehicles in the automotive industry.
EV transition in India: Impact on automotive component manufacturers
One of the key revelations of the study is the projected impact on auto component manufacturers, with 45-84 percent of parts for internal combustion engine (ICE) vehicles, primarily powertrain components, expected to become obsolete due to the EV transition.

States like Haryana, Maharashtra, and Tamil Nadu to take the hit
The analysis of 729 ACMs across the country indicates that approximately 34 percent of them will face significant impact, particularly in states like Haryana, Maharashtra, and Tamil Nadu, where auto manufacturing is concentrated.
Furthermore, projections anticipate a substantial increase in EV penetration in the Indian automotive market over the next decade. EV production is poised to surge, reaching between 36 to 51.4 million units by 2036-37, the report further added. This growth will be particularly prevalent in the two-wheeler and three-wheeler segments, with as much as 100 percent market share in the latter.
EV transition will create more jobs
While the transition to EVs will lead to the depletion of traditional job roles, particularly in ICE manufacturing, it is expected to generate a net increase in employment opportunities, with passenger car manufacturing jobs projected to double by 2036-37, from 1.7 million to 3.3-3.7 million.
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