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  • This technical briefing by the Climate Policy Initiative (CPI) examines the impact of India's transition to electric vehicles (EVs) on micro-, small-, and medium-sized enterprises (MSMEs) within the auto-component manufacturing (ACM) sector. While the shift threatens traditional internal combustion engine (ICE) component markets, it creates opportunities for MSMEs to diversify into high-value EV parts. The report identifies critical barriers—including financing gaps, technical skill shortages, and policy exclusions—and proposes the establishment of an Automotive Component Technology Upgradation Financing Facility (AC-TUFF) to support MSMEs in this transition.

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    Themes: electric vehiclesjust transitionsustainable mobilitysupply chain localizationmsmes
    Climate Policy Initiative

    Document type: Briefing

    Regions: India
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