If you're in the Thai automotive parts industry and looking for new markets with existing gaps, the Indian EV parts market is a signal you should pay close attention to now. Not just because of the impressive growth figures, but because the market's structure is changing in a way that directly impacts your export decisions.<\/p>\n
Sales of electric passenger vehicles in India in May 2026 reached 26,682 units, an increase of over 811 TP3T from the previous year. This figure not only indicates market growth, but also suggests that major OEMs like Tata Motors and Mahindra are expanding production faster than the domestic supply chain can keep up in the short term. This is where Thai parts manufacturers may play a role.<\/p>\n
But before making any decisions, there are several layers of understanding needed, including standards, OEM certifications, India's localization policies, and how long this window will likely remain open.<\/p>\n
These monthly sales growth figures reflect that end-user demand and upstream investment are moving in the same direction. Tata Motors grew by over 1,031 TP3T, Mahindra by over 1,141 TP3T, and electric motorcycles by over 621 TP3T during the same period.<\/p>\n
As OEMs rapidly expand their production capacity, Tier-1 component manufacturers like Samvardhana Motherson and Uno Minda must also expand accordingly. During the construction of new factories, both companies often have to rely more than usual on external sub-tier suppliers because their internal production capacity cannot keep up with demand.<\/p>\n
That's an opportune moment for Thai Tier-2 automakers to potentially become part of the supply chain, especially for parts that India currently still imports, such as powertrain systems, wiring harnesses, BMS systems, and ECUs.<\/p>\n
Not all parts have equal opportunities. We should consider whether India is currently unable to produce enough of them domestically and whether that aligns with what Thai manufacturers can realistically produce. Parts that show clear signs of demand right now include:<\/p>\n
However, it's important to understand that these parts aren't immediately sellable after shipment. Buyers in India, especially large OEMs, have quality assurance processes that take time and require upfront investment.<\/p>\n
This is where many Thai SMEs underestimate the process. Entering the supply chain of Tata, Mahindra, or even Tier-1 like Motherson isn't simply about sending samples and waiting for results; there are many steps involved.<\/p>\n
The first step is qualifying the factory's quality system, which usually requires IATF 16949 or an equivalent standard. The second step is validating the parts according to OEM specifications, which can take 6-18 months depending on the part type. And the third step is passing the Production Part Approval Process (PPAP) before commercial shipments can begin.<\/p>\n
If your factory doesn't already have IATF 16949 certification, starting the certification process now could take 12-24 months. This means that if you're only considering it now, your chances of getting into the supply chain before India localizes itself may become increasingly limited.<\/p>\n
In addition to factory quality standards, there are specific documents and certifications that must be prepared for exporting automotive parts to India, each of which affects customs clearance and buyer acceptance.<\/p>\n
The HS codes used for electric vehicle components in India are very detailed, and import duties vary depending on the type of component. It is advisable to check directly with an experienced customs broker familiar with the Indian market before specifying the HS code on the documents.<\/p>\n
This is something that needs to be clearly understood before deciding to invest time and money in the Indian market. India has clear policies such as Make in India, Aatmanirbhar Bharat, and the PLI Scheme, which aim to reduce reliance on imported parts in the long term.<\/p>\n
Currently, India still has to import because its domestic production capacity cannot keep up, but every year Indian manufacturers are increasingly localizing. Uno Minda is investing US$18.5 million in a new factory in Maharashtra, Samvardhana Motherson plans to invest US$63.4 million, and Schaeffler India continues to increase its capex budget.<\/p>\n
Once these factories are operating at full capacity, the demand for imports from Thailand will naturally decrease. Therefore, if you are truly interested in this market, the best time to build a relationship with an Indian buyer is now, not in 3-4 years.<\/p>\n
Many people only look at the selling price and production cost, but the landed cost of automotive parts shipped to India involves all the components that need to be calculated; otherwise, the price offered to the buyer may not be truly competitive.<\/p>\n
India's import tariff rates for automotive parts range from 7.5-151 TP3T depending on the part type and HS Code used. However, with AIFTA benefits, the rate may be partially reduced. It is also necessary to check whether the exported parts meet the specified RVC (Risk-Value Container Determination), which is generally 35-401 TP3T of the goods value.<\/p>\n
In addition to import duties, India also levies GST (Goods and Services Tax) on top of the CIF value of goods plus import duties, which can range from 5-181 TP3T depending on the type of goods. In total, the actual landed cost may be 20-301 TP3T higher than the estimated FOB price.<\/p>\n
In terms of time, shipping by sea from a Thai port to Nhava Sheva (Mumbai) or Chennai takes approximately 10-18 days, depending on the routing and carrier chosen, plus customs clearance time in India, which can take 3-7 business days if the documents are complete and correct. However, if there are problems with the HS Code or missing documents, it can be delayed by several weeks.<\/p>\n
If you are preparing to approach buyers in India, whether direct OEMs or Tier-1 suppliers, you should have answers to these questions ready beforehand. Failure to answer them will halt the qualification process from the start.<\/p>\n
The final question about a local content plan might seem strange, but many Indian OEMs actually ask this because government policy pressures them to continuously increase their local content. If a foreign supplier plans to invest or transfer technology in the future, they will receive special consideration.<\/p>\n
This market shows genuinely interesting signals, but there are risks that need to be carefully weighed before deciding to invest time and resources.<\/p>\n
The first risk is the timeline for localization in India. If India localizes faster than expected, the window of opportunity may close sooner than you planned, and investing in qualifying a quality system may not be worthwhile if you only secure orders for 1-2 years.<\/p>\n
The second risk is price pressure from Chinese suppliers who have lower costs and some already have factories in India. Price competition in the Indian EV parts market will be very intense, and margins may be narrower than expected.<\/p>\n
The third risk is the uncertainty of customs terms and HS Code classification, which may change according to Indian policy and directly impact landing costs. Changes to Indian import tariff policies should be monitored regularly.<\/p>\n
The decision-making framework for this market should start with asking yourself where your factory stands in the OEM qualification path. If you don't yet have IATF 16949 certification and haven't previously supplied parts to international automotive OEMs, entering the Indian market directly through an OEM might not be the best option right now.<\/p>\n
However, if your factory is already up to standard and has a history of supplying parts to OEMs in Thailand or Japan, starting by mapping out what parts Motherson or Uno Minda needs during this capex expansion and identifying where you can supply them might be a more promising starting point than approaching OEMs directly.<\/p>\n
Another option to consider is attending automotive trade shows in India to build direct relationships with buyers before investing in the qualification process. This will help you understand the actual market needs before making a decision.<\/p>\n
The Indian EV components market is still rapidly changing, and there are signs to watch for to assess whether the window of opportunity remains open or is beginning to narrow.<\/p>\n