NITI Aayog, the government’s premiere think-tank body, recently released a report titled ‘Automotive Industry: Powering India’s Participation in Global Value Chains’, which expects that the Indian automotive component industry can scale up its share in the global supply chain from the present 3 percent to 8 percent by 2030.

The report, in collaboration with Crisil, states that despite high automobile production, the components industry manages a mere 3 percent share of global trade. It estimates India’s global traded auto component market at USD 20 billion, with the global industry driven by transmission, engine components and steering systems. As part of the future opportunities, the report outlines fiscal and non-fiscal interventions to drive India’s progress in the global value chain (GVC).

It outlines that the there is a need to focus on skill development by preparing a talent pipeline for fuelling growth. It suggests cluster development to foster collaboration between firms through common facilities like testing centres and R&D to consolidate the supply chain.

Then there is the operational expenditure support to scale up manufacturing capabilities. Lastly, R&D, government-facilitated IP transfer and branding incentives in research, development and international branding for empowering MSME’s.

On the other hand, promoting foreign collaborations and JV’s, industry 4.0 adoption and improving the ease of doing business through regulatory processes, supplier discovery & development and providing worker hour flexibility were some of the non-fiscal suggestions.

It is no secret that the global auto industry is facing a sea of change. Battery manufacturing hubs seen in regions like the US and Europe are leading to a change in traditional supply chains and new opportunities for collaboration. India’s automotive industry exhibits a strong domestic and export market presence, especially in the utility vehicle and small car segments. Further, transformative shifts towards EVs, sustainability and technologies like autonomous driving, IoT (Internet of Things) make India a leading option in the GVC.

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French tier 1 automotive supplier Valeo has inaugurated a new manufacturing line for electric powertrain systems at its facility in Lonikand, Pune. The line will produce integrated 3-in-1 e-Axles for Mahindra & Mahindra’s ‘Born Electric’ vehicle platform. The inauguration was attended by R Velusamy, President of Automotive Business at Mahindra and Mahindra and Xavier Dupont, CEO, Valeo Power Division.

The facility produces a 3-in-1 e-Axle system that integrates the electric motor, inverter and reducer into a single unit. This configuration is designed to improve efficiency and reliability while reducing the overall footprint of the powertrain.

The Pune plant's technical capabilities include automated lines for U-Pin or Hairpin winding technologies. Dedicated sections for reducer assembly and inverter production. The facility utilises automation, digital tracing and quality control systems for end-to-end monitoring of the assembly process.

Valeo has operated in India since 1997 and currently maintains six production sites across Chennai, Pune, Sanand, and Gurgaon. The company employs 7,500 people in the country, including an engineering workforce of over 3,750 focused on global research and development.

Xavier Dupont, said, “India is a key region in Valeo’s ‘Elevate 2028’ strategic plan. Our investments in Pune supports our commitment to deeper localization of advanced technologies in India. By localizing the production of our highly integrated 3-in-1 e-Axle systems, we are strengthening our ability to deliver advanced technologies to our customers and contributing to India’s transition towards safer, and more sustainable mobility.”

Jayakumar G, President, Valeo India, added, “The inauguration of this line marks an important milestone in Valeo’s journey in India. Our new e-Axle manufacturing line in Pune is a key step in our growth strategy. It reflects our commitment to bringing advanced technology solutions closer to our customers. We are proud to develop and manufacture this e-Axle for Mahindra’s Born Electric Vehicles and to contribute to the growth of India’s EV ecosystem.“

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Gujarat-based embedded electronics and power systems company Bacancy Systems has closed an INR 400 million Series A funding round led by Sabre Partners and Greenstone Capital, both of whom have acquired minority stakes in the firm.

The company intends to deploy the capital to scale manufacturing infrastructure, accelerate product development and expand into international markets. The funding will also support research and development (R&D) in two primary industrial segments:

Electric Mobility: Development of DC charger controllers and power electronics for EV original equipment manufacturers (OEMs) and charging infrastructure providers.

Railway Electronics: Expansion into Train Control and Management Systems (TCMS), traction converter control systems, and remote monitoring platforms.

Founded in 2021, Bacancy operates at the intersection of hardware, firmware and cloud technologies.

Binal Patel, Founder and CEO, Bacancy Systems, said, “Closing our first fund raise is indeed a defining moment for Bacancy Systems. This milestone validates what we have believed from day one – that deep, purpose-built R&D in Electric mobility, Railways, is not just the future, but an urgent necessity, and local manufacturing of the same under the Make in India initiative is equally essential to empower India and build a reliable supply chain. With over two decades of industry experience, I am more confident than ever that the innovations we are building will define the next generation of India’s industrial backbone. This capital empowers us to push the boundaries of what’s possible in EV infrastructure, Railways, and beyond – and we are just getting started.”

Tanushree Agarwal, Partner, Sabre Partners, added, “Bacancy represents a compelling play on India’s electrification and indigenisation themes. The company has built strong capabilities in power electronics and controller systems, with a clear focus on IP-led product development. We believe Bacancy is well-positioned to benefit from the rapid growth in EV infrastructure and railway modernisation, and we are excited to partner with the management team to support the next phase of growth and scale.”

Paresh Thakker, Managing Partner at Greenstone Capital, stated, “Bacancy’s strong engineering capability and focus on indigenised embedded systems position it well within India’s evolving EV and railway electronics ecosystem. We are pleased to collaborate with the company in driving its upcoming phase of growth and transformation.”

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Samvardhana Motherson International Limited (Motherson) has signed a joint venture agreement with Hellmann Worldwide Logistics (MESA) Holding Limited (Hellmann) to provide integrated supply chain solutions tailored to the global automotive industry. The JV will be incorporated in Dubai and deliver innovative, efficient and sustainable logistics solutions by combining Hellmann’s global logistics network and technology capabilities along with the deep automotive supply chain expertise of Motherson. 
The Dubai-based company will provide access to more than 30,000 global suppliers and trusted OEM relationships. It will also help deliver greater stability, predictability and efficiency across global logistics operations and spending. Both the partners are committed to carbon net-zero targets and will leverage their expertise and technologies to support industry-wide sustainability initiatives. The joint venture will support Motherson’s growing global manufacturing footprint and the broader automotive ecosystem while strengthening Hellmann’s global automotive logistics capabilities.
Arjun Kochhar, Chief Executive Officer, Logistics Solutions Business Division, Motherson Group, said, “Motherson’s Logistics Division focuses on building specialised platforms that support the evolving supply chain needs of the Group, our customers, suppliers and the broader ecosystem, as part of Motherson’s solutions strategy. Our partnership with Hellmann Worldwide Logistics combines Motherson’s integrated industrial capabilities with Hellmann’s extensive network and advanced logistics expertise. Together we aim to deliver more resilient, agile and sustainable logistics networks in an increasingly interconnected and complex global environment.”

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Autoverse Mobility announced a series of technical and service initiatives at Motor Mechanic Day 2026 to address transparency and parts authenticity in the Indian automotive aftermarket. The digital distributor is introducing traceability systems and certification programmes to support garage operations.

The company has launched a warranty programme for multi-brand garages underpinned by an advanced traceability system. This platform allows for the verification and tracking of genuine parts across the supply chain.

To improve consumer access to verified providers, Autoverse introduced a WhatsApp-based mechanic discovery feature. This tool connects vehicle owners with garages that utilise verified parts, aiming to standardise service reliability.

Autoverse Mobility, in partnership with Paracoat Products, unveiled Pynoseal, an underbody coating solution for vehicle durability.

Recognising the shift toward electrification, the company launched an EV Mechanic Certification Programme. This initiative focuses on – technical training, workshop digitalisation, industry collaboration with direct engagement with component brands such as Sumax Industries, Lumax Auto and Delux Bearings.

Rama Shankar Pandey, Co-Founder, Autoverse Mobility, said, “As vehicles become more advanced and electrified, the role of mechanics is becoming even more critical to the reliability and safety of mobility. The future of mobility will not just be defined by vehicles, but by the strength of the ecosystem that supports them. For too long, the aftermarket has operated with fragmentation, limited transparency, and unequal access to quality parts and capabilities. By empowering mechanics with the right tools, trust, and opportunities, we are enabling a more reliable, transparent, and scalable aftermarket for India through Autoverse Mobility. Our vision is to fundamentally redefine how India services its vehicles while significantly reducing the need for heavy CAPEX.”

Mihir Mohan, Founder and CEO, Autoverse Mobility, added, “Through our new initiatives, we aim to strengthen an ecosystem where garages can operate with confidence and customers can rely on every repair. As mobility evolves, especially with the shift to electric, enabling mechanics with the right capabilities and access will be critical to the future of the aftermarket. Motor Mechanic Day 2026 reflects our commitment to bringing the industry together while laying the foundation for a more trusted, transparent, and future-ready automotive aftermarket in India.”

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