India is at a critical juncture in its transition toward electric mobility, a shift necessary for achieving national climate targets, improving air quality, and transport decarbonization. Automotive MSMEs form the backbone of India’s automotive manufacturing ecosystem, significantly contributing to employment, innovation, and economic growth. However, transitioning these MSMEs toward electric vehicle (EV) manufacturing poses considerable challenges, including limited access to technology, capacity development complexities, and inadequate financing options. Targeted policy interventions and robust financing mechanisms are essential to indigenize and scale up India’s EV supply chain successfully.

Objective

To underscore the requirements of automotive MSMEs for the transition, Climate Policy Initiative will release its report “Roadmap for an Automotive Component Technology Upgradation Financing Facility,” accompanied by a presentation of its key findings. The report provides a strategic blueprint for developing a dedicated financing facility to ensure increased availability of affordable capital, enhance the bankability of investments, and facilitate technological advancements among automotive MSMEs amid India’s transition to electric vehicles. Following the launch, expert panel discussions will bring together policy, industry, financial institutions, academia, and civil society representatives. These discussions will focus on identifying measures to mitigate risks in MSME financing, establishing sustained, accessible capital flows, supporting MSME integration into the EV ecosystem, and promoting an inclusive and resilient transformation of India’s automotive sector.