Adapting to electric vehicles value chain in India: The MSME perspective

India has committed itself to a greener and cleaner future by opting for the latest technological revolution in the world of Automotives - Electric Vehicles (EVs). However, the contribution of any technology to economic growth and environmental development is highly correlated with its extent of diffusion and adoption. While much has already been written about the EV ecosystem in the country and the electric market from a consumer standpoint, this paper analyses the supply-side challenges and opportunities in adapting to the electric mobility mission in India as perceived by the firms, especially the Micro, Small and Medium Enterprises (MSMEs). Using PLS-SEM method on data collected from these firms in the Indian automotive industry, this study finds that major factors that the firms feel are significant in adapting to the current disruption are financial, technological and regulatory in nature. The factors aiding the transition are the state and central policies while inputs and trade related factors are impediments due to excessive dependence on imports for raw materials, components and final goods. The paper has further employed the lens of value chain analysis to understand the dispersion of these across the various segments of the EV value chain.