From ‘Make in India’ to ‘Design in India’

India's automotive market is the third largest globally, yet the conversation remains centered on a binary split between Indian brands and foreign technology. Contrary to the popular notion, no vehicle is ever built entirely on its own, as critical components such as cells, semiconductors, software, and design capabilities are often sourced from partners, both domestically and internationally.

Rather than focusing on whether a technology is Indian or foreign, the more pertinent question is how that technology evolves once it reaches Indian shores.

India has, over the past four decades, developed world-class capabilities through continuous learning, adaptation, and innovation. The partnership with Suzuki in 1982 enabled the nation to gain lean manufacturing techniques, quality systems, and a vendor development model, while Tata Motors gained valuable design and manufacturing expertise through collaborations with I.DE.A Institute. Mahindra, too, benefited from alliances with Ford and later Renault, eventually leveraging these learnings to develop its own vehicles.

However, the focus of what needs to be learned has shifted. Modern vehicles are defined by their batteries, power electronics, and software, far removed from the mechanical refinements that once defined the industry. As such, the skills acquired during the internal combustion era no longer hold the same value in the era of electric vehicles. To succeed in the EV market, Indian companies must acquire the necessary knowledge and expertise, and there is no reason to shy away from doing so.

A crucial distinction that emerged after the policy changes was the autonomy granted to companies in partnering with their preferred partners and determining the outcomes of these collaborations. In the past, foreign entrants were required to work with Indian companies, and much of the learning was imposed by policy. Today, companies are free to choose their partners and determine their desired outcomes. Consequently, the nature of a partnership carries significant weight in assessing a company's capabilities.

Effective partnerships should not merely involve buying technology but should enable a deeper understanding, dissection, testing, and rebuilding of that technology to be incorporated into future projects. This approach demands substantial investment in research and development funded continuously rather than being switched on and off based on demand.

It also necessitates owning vehicle architecture and validation processes, which allows a company to define its product logic and establish manufacturing depth in critical areas such as cells, power electronics, and thermal systems.

The market is already demonstrating the efficacy of this approach. In July, Tata Motors and Mahindra jointly accounted for more than 65% of India's EV registrations, with Tata capturing 41.4% and Mahindra securing 23.8%. These figures highlight the importance of investing in long-term projects before witnessing returns, rather than focusing on short-term gains through imports.

The ultimate objective is clear: an industry that assembles vehicles depends on external decisions regarding costs, supplies, and timelines. Conversely, an industry that owns its architecture and supply base has the power to govern its own destiny. In the era of electric vehicles, Indian companies must not only absorb the technology but also shape their future by taking ownership of it. The journey from 'Make in India' to 'Design in India' represents the next crucial step towards industry leadership.