Indian Economy News

Auto component industry to see 9-11% revenue from EV parts by 2027: Crisil

  • IBEF
  • July 27, 2022

According to Crisil, as electrification rises, the auto component sector may expect 9–11% of its revenue to come from EV (Electric Vehicle) parts by 2027. According to the report, this rise will occur even as the availability of parts for vehicles powered by traditional internal combustion engines increases. A meagre 1% of the sector's total sales during the previous fiscal year was attributable to EV components.

According to the statement, revenue for electric vehicle components is expected to expand at a compound annual growth rate of almost 76%, from Rs. 4,300 crore (US$ 538.37 million) last fiscal year to Rs. 72,500 crore (US$ 9.07 billion) in fiscal 2027. Up to 60% of this income is anticipated to come from the battery market, followed by 15% each from the drivetrain and electronics segments. It was predicted that 90% of EV component supply would go to the two-wheeler and PV (Passenger Vehicle) segments.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.