India’s automotive industry is currently valued at USD 222 billion and is expected to reach USD 300 billion by 2026. It accounts for 8% of the country’s total exports and 7.1% of GDP. With 100% FDI allowed for the industry under the automatic route, it was the second largest FDI attracting industry in the country, accounting for 15.8% of total FDI between 2021-22.

As the industry pivots towards sustainable mobility steered by government focus, the EV (projected to grow at a CAGR of 49% between 2022-2030) and alternative fuel technology markets, such as green hydrogen cells, clean energy and mobility solutions are expected to attract immense investor interest. Additionally, as per IEA, this transition to clean energy- including renewable batteries, green hydrogen, and other clean technologies is expected to create a market of USD 80 billion in India by 2030- out of which USD 19 billion (~24%) is expected to be attributable to green hydrogen.

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    Transformation consulting

    Problem statement
    The client was an apex body representing the interest of the Indian auto component industry, having a member base of more than 800 manufacturers contributing >85% of the auto component industry’s turnover in the organised sector. The engagement focused on helping the Indian auto industry identify opportunities for import substitution, making recommendations to increase local manufacturing and global value, and making recommendations for the state government to promote the automotive electronics manufacturing ecosystem in India.
    Our Solution
    Basis our initial hypothesis, extensive primary (OEMs, auto component manufacturers, and industry associations) and secondary research was conducted that enabled us to baseline the relevant product categories, understand existing and potential market estimates for the global/domestic market and determine the key trends/regulations that will drive and shape the future ecosystem.
    Impact
    This engagement addressed key questions, including: 1) Which automotive electronic products are most relevant for the Indian automotive market, considering India’s current regulations and other demand trends? 2) Which automotive electronic products need to be prioritised to save on the import bill while considering operational and financial factors such as manufacturing complexity, technology requirement, capex need, etc.? 3) What are the manufacturing targets that could be considered for the short term (i.e., 2027) and medium-term (i.e., 2032) basis products prioritised, and 4) What are the steps that can be taken by different stakeholders within the industry to realise those targets?

    Tax, regulatory, and finance consulting

    Problem statement
    The client was a multinational auto component group with over 100 years of experience in operations, extensively focused on green technology and energy conservation systems. Regarding the evaluation of eligibility criteria for the incentive under the Production Linked Incentive (PLI) Scheme, the client required assistance in the collation and filing of application, regular follow-up with ministry officials for obtaining the approval letter, and post-approval PLI support such as filing of quarterly review report (QRR), annual disbursement claims, and disbursement of funds.
    Our Solution
    The approach included steps such as understanding the scheme and eligibility of the clients’ products for the incentive under the scheme, understanding the eligibility of expenditure on fixed assets for its consideration as an eligible investment under the scheme, collation of requisite documents required for filing of the application under the scheme, continuous handling of queries raised by the Project Management Agency (PMA), and liaisoning with ministry officials to ensure smooth coordination and efficient execution.
    Impact
    Our outreach activities with the ministry officials, coupled with prior experience in similar schemes, helped the client immensely. Smart collaboration, responsiveness, investment of leadership’s time to address queries, and a solution-oriented approach were key to winning the approval letter for incentive.

    Risk consulting

    Problem statement
    The client was a leading Tier-I supplier of auto components and solutions to original component manufacturers (OCMs) globally. They required coverage of all business verticals once a year for internal audit as against once in two years, horizontal deployment of best practices for diversified business verticals across the group, assistance on implementation of various recommendations as identified during the internal audit process, increased reliance on automated controls and technology and to address complex governance issues, and strengthen existing policies and procedures.
    Our Solution
    We focused on smart collaboration by forming a team with representation from risk advisory, ERP advisory, technical resources, and tax professionals. This helped structure a comprehensive coverage of the scope and operations of the group. We had regular sessions with the promoter group, Independent Directors, Business CEOs, and Functional Heads to understand their expectations from the internal audit function and their focus areas. Additionally, we assisted the group in the identification of significant cost-saving opportunities and arrest areas of possible leakages across various geographically diversified locations. We helped the management meet the objectives of related party governance by successfully integrating technology (SAP) to address the challenges of complex group structure and SEBI regulations.
    Impact
    Our assistance in strengthening controls and horizontal deployment/implementation of best practices across the group resulted in consistency in business processes across various business verticals. Over the years, the client’s internal financial control framework has been rationalised to meet dynamic business needs and the cost of compliance.

    Meet our leaders

    Saket Mehra

    Gurugram

    +91 124 462 8000

    Sumeet Abrol

    Gurugram

    +91 124 462 8000

    Sridhar V.

    Chennai

    +91 44 4294 0000