Supply Chain Realignment Could Add $1–1.5 Billion to India’s Auto Exports

Global auto majors are recalibrating their EV strategies, writing off billions in investments, and slowing launches. This has weakened the balance sheets of several European auto component suppliers, pushing some into bankruptcy. The disruption is creating incremental opportunities for Indian auto parts makers such as

and , as OEMs shift orders to more stable vendors. Bankruptcies have hit suppliers like Winning BLW (October), Neapco Europe (June), and Aims. These firms serve major component makers such as ZF and BorgWarner, and automakers including Ford, Volkswagen, BMW, and Jaguar Land Rover. The failures stem from excess capacity built for EV demand that has not materialized. Nomura Research Institute notes incremental order flows to Indian firms from both emergency resourcing and deliberate long-term reallocation. Sona Comstar and Motherson expect new business as customers shift orders or past acquisitions begin to pay off. Sona derived 24% of revenue from Europe (2014–25), while Motherson saw 15%. Nomura estimates India could capture $1–1.5 billion in export-linked business over 3–5 years. Nuvama Institutional Equities pegs the industry opportunity at ₹2,500–3,000 crore, with order wins likely within 12 months and production commencing around 2028. Motherson has already positioned itself through acquisitions of troubled European firms such as Dr. Schneider Group (Germany) and AD Industries (France). Customers have even asked Motherson to take over distressed suppliers. Sona Comstar is betting on new orders from clients of bankrupt vendors. Ford and Volkswagen have written off $19.5 billion and $6 billion, respectively, citing slower-than-expected EV growth. Ford has scrapped several planned EV launches, while Porsche delayed models. European regulators also rolled back the 2035 ICE phase-out provision, signaling a recalibration of EV timelines.