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Roadmap for an Automotive Component Technology Upgradation Financing Facility
India's transition to electric mobility requires significant technology upgrades for automotive component MSMEs, who face structural barriers to affordable capital. CPI estimates that these MSMEs need INR 55,000 crore (USD 6.6 billion) in investment between FY2026 and FY2035 to maintain their industry share. To bridge this gap, the report proposes AC-TUFF, a blended-finance special purpose vehicle utilizing a tiered capital stack (first-loss, concessional, and commercial capital) and an integrated technical assistance wing. The facility aims to mobilize a total corpus of INR 5,000 crore to support the localization of EV components, which has a projected annual market potential of INR 3.86 lakh crore by FY2035.
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Document type: Report