A guide to the import and export of EV components in India

India’s automotive sector is powering ahead, already established as the world’s third-largest automobile market. This phenomenal growth is set to continue, with the market expected to expand at a robust CAGR of 8.1% from 2024 to 2030, reaching a projected value of almost $200 billion¹.

While domestic production and demand are exceptionally strong, Indian businesses looking to secure future growth and expand their global client base must pivot strategically. As Electric Vehicles (EVs) rapidly become commonplace around the world, EV manufacturing in India is a compelling growth area to explore and get ahead of the curve.

By proactively developing capabilities to become an EV parts manufacturer today, Indian companies can capture the vast opportunity in auto parts export, supplying the specialized main components of electric vehicles to global markets and establishing a long-term competitive edge.

Exploring the import and export landscape of EV components in India

In order to identify areas of opportunity, it’s important to understand the key components of electric vehicles being imported and exported in and out of India.

Import of EV components into India

Despite remarkable strides by local EV parts and battery manufacturers in India, the country is still reliant on imports for several critical parts. 

These are some of the top EV components currently being imported into India:

• Battery cells: The lithium-ion cell accounts for a substantial part of the vehicle’s cost and is predominantly imported from nations like China, Japan and South Korea². EV battery manufacturers in India mostly handle the module packing and assembly of these EV battery components.
• Rare earth minerals: Essential raw materials like lithium, cobalt, and nickel, which are fundamental to both the battery and advanced electric motor production.
• Power electronics: Sophisticated systems, including the inverter, converter, and high-voltage distribution units, which govern the vehicle’s energy flow.
• Integrated chips and semiconductors: The “brains” of the vehicle, indispensable for every electronic control system, from the battery management system (BMS) to the infotainment unit.

Export of EV components out of India

Auto parts exports from India are set to reach between $70-100 billion in 2030, according to the Automotive Component Manufacturers Association of India (ACMA)³. EV parts manufacturers in India can set themselves to ride this wave by focusing on some of the main components of electric vehicles:

• Battery components and electronics: This includes ready-to-use battery packs, advanced wiring harnesses, and various high-specification sensors and modules.
• EV powertrains: Specialized components like electric motors, gearboxes, and control units
• Structural components: Various chassis parts, body components, and other structural elements of an electric vehicle.

India’s established relationships in the global automotive sector position it perfectly to ride the coming EV export wave. The countries that currently rely on traditional auto parts export from India are also the world's most aggressive adopters of electric vehicles, ensuring a ready-made demand base for the main components of electric vehicles. Some of these nations are⁴:

• United States: A major market for both OEM (Original Equipment Manufacturer) parts and aftermarket auto components.
• European Union: Countries like Germany, the UK, France, and Italy import a significant amount of Indian auto components for their automotive industries.
• Asia-Pacific: Countries like Japan, South Korea, Thailand, and Indonesia have strong automotive sectors and regularly import parts.
• Middle East: GCC countries like Saudi Arabia, UAE, and Kuwait import a wide range of auto components for their booming automotive markets

Despite the strong strategic goals for both importing critical cells and exporting finished battery packs, the most complex challenge remains the safe, compliant, and cost-effective movement of the most critical component: the lithium-ion battery. This complexity gives rise to a specialised field of operations that every EV parts manufacturer in India must master.

EV battery logistics in India

The EV battery is the single most defining and most expensive element of an electric vehicle, making it the most impactful component in the entire supply chain. Successfully scaling both the lithium battery import for raw cells and the eventual export of finished packs will be an important part of EV manufacturing in India. 

The complexities associated with EV battery logistics

Lithium-ion batteries are classified as dangerous goods because of their high energy density, which brings significant challenges within the supply chain, particularly when navigating international borders. These challenges are not only logistical but also regulatory and environmental in nature, directly impacting the handling of electric car battery elements.

1. Storage and transportation

The inherent risks associated with lithium-ion batteries demand stringent safety measures for storage and transportation. The high energy density of these batteries poses risks of thermal runaway, leading to potential fires if improperly handled.

2. Complex import-export regulations

One of the foremost challenges in the lithium-ion battery supply chain is compliance with many regulations that govern its transportation overseas. These regulations vary not only from country to country but also across different states and local jurisdictions within India. For example, lithium-ion batteries must undergo Bureau of Indian Standards (BIS) certification to ensure they meet quality and safety standards.

If businesses are unable to comply with these regulations, it may lead to hefty fines, legal repercussions, and significant delays in the supply chain. For further information, check out our guide on how to ship batteries internationally.

DHL Express’ solutions for EV battery logistics and EV component exports

Recognizing the complex demands of the electric mobility sector, DHL Express has a comprehensive logistics solution tailored for EV battery components and overall auto parts export from India. Our services help EV parts manufacturers in India navigate complexities and deliver products to global customers on time to fully capitalize on the burgeoning EV market.

1. Compliance expertise

DHL Express has the expertise to guide businesses in India on the relevant customs and regulations for EV batteries and other components. No matter the destination, DHL Express helps your business understand and adhere to the local regulations of your destination to facilitate smooth customs clearance.

2. Supply chain optimisation

DHL Express’ extensive global network and real-time visibility across the logistics chain helps to optimize international delivery route costs and allows for timely adjustments in the event of disruption, ensuring reliable delivery of your key components.

3. Dangerous goods expertise

DHL Express’ expertise in the management of dangerous goods ensures that all storage, packaging and handling practices for EV battery components are compliant with local and global regulations. Your products arrive safely, saving you costs on replacement, repairs and compliance fines.

Work with DHL Express to optimize your EV supply chain

The import and export of EV components in and out of India depends on a supply chain that is both compliant and efficient. By partnering with DHL Express, you can leave the complex EV battery logistics to the experts so your business can focus entirely on producing the main components of electric vehicles to take advantage of global market opportunities.

Don't let logistical challenges slow your growth, create a DHL Express business account to streamline your import and export from India today.

Frequently asked questions about the import and export of EV components in India