ICE auto parts cos may trip as electric shift gathers speed

India's auto parts manufacturers are bracing for an uncertain future as large automakers boost production of electric vehicles (EVs) at the expense of petrol and diesel models, in a shift that is transforming the requirements for components and increasing the role of technology.

- Ayaan Kartik

Analysts believe that big auto ancillary firms will be able to gain market share and consolidate their position, as small players lack financial muscle to invest and diversify into high-value EV components.

"The number of suppliers in the auto space is set to shrink in the next decade due to the transition to electric vehicles. Big or small, every player in the segment is faced with the task of chalking out a plan of what they will do to fit in the new electric order of the auto space," Srihari Mulgund, partner-electric vehicle value chain at consulting firm EY-Parthenon, said.

Bosch, Sona Comstar, UNO Minda, Samvardhana Motherson International and Bharat Forge are some of the large companies competing in India's auto ancillary industry, that's estimated at ₹6.14 trillion and provides direct jobs to more than 1.5 million people.