India’s auto industry risks falling behind in the global EV shift unless it solves major internal issues, according to a new report by Vector Consulting Group. The study is based on discussions with over 100 top executives from car companies and their suppliers.
The report says 88% of Indian auto parts makers are short on research and development (R&D) capacity. Even big car brands are seeing delays of up to two years in their electric vehicle (EV) plans—not because of a lack of ideas or technology, but due to weak internal coordination and poor execution.
Ravindra Patki from Vector Consulting says the main problem lies within the companies. He points to poor teamwork, capacity mismatches, and outdated systems that slow down progress. “To succeed in the coming decade, the industry must change how it works—not just what it builds,” he said.
One big issue is that many companies are using the same teams to work on both electric and traditional fuel (ICE) vehicles. This overloads departments like engineering and testing, causing delays and mistakes. Even teams focused only on EVs still follow old processes, which makes things slower.
Suppliers are also struggling. They’re expected to handle many complex projects at once but often don’t get clear timelines. This leads to last-minute design changes, rising costs, and burnout among engineers.
Startups in the EV space are facing their own issues. While they don’t have older models to manage, they often promise quick launches and rely too much on fixes after release, like OTA updates. This harms customer trust.
The report urges automakers and suppliers to become true partners—sharing risks, designing products together, and tracking progress in real-time to avoid delays.
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