India’s transition to electric mobility is running into a critical hurdle—not technological innovation or market intent, but a deep-rooted execution breakdown across the auto component value chain. According to a new study by Vector Consulting Group, a staggering 88% of India’s auto suppliers are facing severe R&D capacity constraints, while EV programmes at legacy OEMs are being delayed by up to 24 months due to structural inefficiencies.
The study, based on insights from over 100 CXOs across OEMs and Tier-1 suppliers, highlights that traditional models of product development, supplier collaboration, and program execution are proving woefully inadequate in the face of the electric vehicle (EV) shift.
“The bottleneck is internal,” said Ravindra Patki, Managing Partner at Vector Consulting Group. “Poor coordination, capacity mismatches, and execution blind spots are derailing the sector’s transition. To succeed, the auto industry must rethink how it works—not just what it builds.”
Parallel Programming, Singular Strain
Many legacy automakers are attempting to juggle both ICE and EV programmes without recalibrating internal capacity. Engineering, procurement, and validation teams continue to be shared, often resulting in rework, overlapping priorities, and cascading delays. Even dedicated EV teams are frequently hamstrung by inherited systems, undermining their agility and speed.
Tier-1 Under Pressure
Suppliers, too, are buckling under pressure. Expected to support multiple high-complexity programmes across OEMs, they often operate with minimal clarity on volume commitments or rollout timelines. This results in last-minute design changes, rising costs, and stretched engineering resources—compromising both product quality and delivery reliability.
“If OEMs want reliable execution, they must engage suppliers early, align them to product goals, and integrate them beyond the procurement cycle,” said Patki.
Startups Not Immune
EV startups, despite the absence of ICE baggage, are not exempt from execution pitfalls. The study notes a pattern of overpromising timelines and using OTA updates to resolve post-launch flaws—quick fixes that can erode brand equity and escalate long-term costs.
A Call for Collaborative Reset
The study recommends a fundamental reset in OEM-supplier engagement. Instead of transactional relationships focused on cost-down targets, Vector advocates for co-development partnerships that include:
- Early-stage design collaboration
- Shared programme ownership and execution targets
- Integrated OEM-supplier teams
- Real-time dashboards to track product maturity and reduce friction
“The winners of this decade won’t be those with flashy concept cars,” concluded Patki, “but those who can develop, scale, and refine products faster—through better systems, deeper collaboration, and stronger execution muscle.”
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