The Growing Role of Indian Tooling Companies in the EV Supply Chain

By: Nandakumar Puthiyaveetil, Director, OMG Auto Mould Pvt. Ltd.

India’s transition to electric mobility is reshaping not only the vehicles being manufactured but also the engineering capabilities required to produce them. While attention often centres on batteries, motors and charging infrastructure, tooling companies play an equally important role by enabling automotive components to be manufactured with precision, consistency and scale.

As electric vehicle (EV) platforms evolve, Indian tooling companies have an opportunity to contribute more closely to product development, component localisation and advanced manufacturing. Their capabilities will be critical to building a domestic EV supply chain that is competitive and resilient.

A Changing Automotive Manufacturing Landscape

India’s automotive component industry provides a strong foundation for this transition. According to the Automotive Component Manufacturers Association of India (ACMA), the sector recorded a turnover of approximately ₹7.59 lakh crore in FY2025–26, registering 12.7% growth over the previous year. Exports reached approximately USD 24 billion, highlighting the scale of India’s manufacturing base and its participation in global supply chains.

The shift to EVs is changing component requirements. While conventional vehicles rely heavily on engines and transmissions, EVs require specialised components for battery packs, electric motors, power electronics, thermal management and high-voltage electrical systems. These applications introduce new material, design and manufacturing requirements, creating opportunities for tooling companies to adapt their existing automotive expertise.

Why Tooling Is Critical to EV Production

Tooling includes the moulds, dies, fixtures and specialised tools used to manufacture automotive components. Their quality directly influences dimensional accuracy, production consistency, material utilisation and manufacturing lead times.

Precision plastic injection moulding, for instance, remains important for EV interiors, exterior assemblies, electrical housings and other applications. At OMG Auto Mould, the company has developed lithium-ion battery cell holders for electric two-wheelers for EV customers. Such components require consistent dimensions and reliable fit to support battery assembly requirements.

The opportunity also extends to human-machine interfaces (HMIs), panels and interior components through which drivers and passengers interact with vehicle systems. As EV interiors incorporate digital interfaces, ambient lighting and decorative finishes, tooling manufacturers must accommodate complex geometries and surface treatments. Three-dimensional laser texturing can enable detailed graphic patterns and differentiated finishes, increasing the importance of precision mould design.

Tooling companies can contribute beyond manufacturing to a completed drawing. By collaborating with OEMs and component manufacturers during product development, they can identify manufacturing constraints early, reduce repeated design modifications and improve the likelihood of achieving first-time-right components.

Localisation and the Wider Tooling Ecosystem

Domestic tooling capabilities can reduce dependence on overseas suppliers for selected tools, replacement parts and engineering support. Working with local partners can improve communication during product development and enable faster responses when component designs change. These benefits are important because delays in tooling design, manufacture, trials or modifications can affect entire production schedules.

However, localisation requires more than developing individual tool rooms. Toolmakers depend on a wider ecosystem of suppliers providing specialised tool steels, standard mould components, machining services, surface treatments and coatings. If the required steel grade, material size or standard component is unavailable domestically, manufacturers may need to import it, adding time and uncertainty to project schedules. Limitations in the processing capacity of domestic facilities can also make overseas manufacturing necessary for certain large or complex tools.

Strengthening the ecosystem requires material suppliers, equipment providers, standard-component manufacturers and specialist service providers to develop capabilities alongside toolmakers. India could also benefit from dedicated tooling clusters that bring manufacturers and supporting vendors together, improving access to materials, technical services and engineering expertise.

A stronger domestic supplier base would help reduce import-related delays, improve coordination and make tooling development more predictable. This is particularly important for automotive manufacturers seeking shorter lead times and greater supply-chain resilience.

Government initiatives are supporting the wider development of domestic EV manufacturing. The Production Linked Incentive scheme for Advanced Chemistry Cell battery storage has an approved outlay of ₹18,100 crore to establish 50 GWh of manufacturing capacity. While the scheme targets battery-cell manufacturing rather than tooling directly, the expansion of domestic EV production can create opportunities across the broader manufacturing ecosystem.

Advanced Manufacturing and the Road Ahead

To meet evolving customer requirements, Indian tooling companies must continue investing in technology, skilled manpower and engineering expertise.

Five-axis machining centres and advanced multi-axis machining systems can manufacture complex tool geometries with greater precision and reduce machining lead times for suitable applications. These capabilities distinguish advanced tool rooms from facilities relying primarily on conventional CNC milling and can support more demanding component designs.

Precision inspection is equally important. Portable measuring arms, coordinate measuring machines and other inspection systems help verify that tools conform to specified dimensions and tolerances. Combined with effective process planning and skilled engineering, these technologies can reduce rework, improve resource utilisation and support first-time-right manufacturing.

Nevertheless, advanced machinery alone cannot ensure consistent results. Tooling companies also need skilled engineers, reliable access to materials and supporting services, and robust quality processes. Smaller manufacturers may face challenges in accessing specialised talent, advanced software and testing infrastructure, making collaboration across the supply chain increasingly important.

Moving Up the EV Value Chain

India’s established automotive manufacturing base gives its tooling industry a strong starting point. The next phase of growth will depend on how effectively companies adapt to evolving EV components, precision moulding and digitally enabled manufacturing while strengthening the wider supplier ecosystem.

Ultimately, India’s EV ambitions will depend not only on vehicle assembly and battery production but also on the depth of engineering and manufacturing capabilities supporting them. By investing in technology, developing specialised skills and collaborating with customers from the design stage onwards, Indian tooling companies can move into a more strategic role in the EV transition and help build a domestic supply chain that is more capable, resilient and globally competitive.

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