European EV write-offs fuel export wins for Indian firms

European auto component suppliers are facing bankruptcy risks amid a demand slowdown

- Ayaan Kartik

During 2014-25, Sona Comstar witnessed 24% of its revenue coming from Europe, while Motherson saw 15% coming from the region.

Electric vehicle investment write-offs by global auto giants, and a general automotive slowdown in demand, are sending some European auto component suppliers into bankruptcy, creating a potential business opportunity for Indian parts manufacturers as customers shift orders away from the distressed vendors.

According to Harshvardhan Sharma, group head at Nomura Research Institute, the development is translating into incremental order flows for Indian companies not only from emergency resourcing of distressed European vendors, but also from deliberate long-term reallocation of global platforms.

"If this trend persists, India could realistically capture an additional $1-1.5 billion of export-linked component business over the next 3-5 years, purely from European supply realignment."

At least two Indian parts makers, Sona Comstar and Samvardhana Motherson International Ltd, say troubles at European suppliers will likely drive incremental business in coming years as customers shift orders or past acquisitions begin to pay off.