How to Start an EV Spare Parts Business in India

An electric vehicle (EV) spare parts business in India works best when you pick one vehicle segment, stock the parts that wear out in it, and buy only from suppliers who give a written warranty and fitment details. Start by trading and fitting parts. Move to assembling items such as battery packs only after you know which two or three products keep coming back to your counter.

The segment matters more than the shop location. India registered about 2.55 million electric vehicles in FY2025-26, and in calendar 2025 roughly six in ten were two-wheelers and three in ten were three-wheelers, according to the India Energy Storage Alliance, as reported in July 2026. Those two groups, plus the e-rickshaw fleet, are where independent parts buyers will come from.

Which EV spare parts sell on e-rickshaws, scooters and cars?

E-rickshaws give the clearest repeat purchase, scooters give the most vehicles, and cars leave the least room for an independent shop.

Power electronics such as inverters and converters are the most failure-prone parts after the battery, and an inverter priced at ₹30,000 to ₹50,000 is often replaced rather than repaired (EVreporter, December 2025). Buy such units against a customer order. Unsold controllers for one scooter model are how a small shop loses its capital.

Should you trade EV parts or make them, and where does the margin come from?

Trade first. The two routes differ in capital, risk and starting point.

I could not find a sourced start-up figure for an EV parts shop, so work out your own. Ask your Regional Transport Office (RTO) or state transport department for electric registrations in your area, list the 20 parts you expect to sell most, and ask three suppliers for the dealer price and printed price of each. That gives you a margin per part and a stock budget. Mudra loans cover trading; the 29 October 2024 Press Information Bureau note puts the top limit at ₹20 lakh, so confirm the current limit with your bank.

Keep market size in proportion. The Observer Research Foundation’s authors roughly estimated electric two-wheeler after-sales revenue at about ₹320 million a year, against about ₹400 billion for all two-wheelers in 2022, because EVs have far fewer moving parts. Pair scooters with e-rickshaws.

How does a small unit assemble an e-rickshaw or scooter battery pack?

Pack assembly is the most realistic part to make, because customers replace the pack most and the cells arrive ready-made. Making cells is a far larger project, covered in the battery manufacturing business guide. A typical small line runs as follows.

1. Buy graded cells with the maker’s test report; untraceable cells are the usual cause of pack fires.
2. Measure voltage and capacity and group matching cells.
3. Arrange the cells in series and parallel to reach the vehicle’s voltage and capacity, and join them with spot-welded nickel strips or busbars.
4. Fit a battery management system (BMS) suited to the cell chemistry, with over-current, over-temperature and balancing protection.
5. Add the fuse, wiring and connector, and close the pack in an insulated enclosure.
6. Run charge and discharge cycles and an insulation test, then stamp a traceable serial number.

The transport ministry’s Automotive Industry Standard (AIS) 156 battery safety amendments, phased in from December 2022 and March 2023, ask for pack traceability and a microprocessor-based BMS with full protections, as EVreporter’s guide summarises. Before selling packs under your own name, ask a testing agency such as the Automotive Research Association of India whether your pack needs its own approval.

Wiring looms and controllers follow different processes; see the auto component manufacturing guide.

What registrations and approvals does an EV parts business need?

A trading shop needs far less paperwork than an assembly unit.

The India Energy Storage Alliance reported in September 2025 that batteries of all chemistries sit at a uniform 18% GST; other EV parts differ by part, so check each code before pricing. The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) incentive on new electric scooters, which Autocar Pro reported in August 2026 now runs to 31 March 2028, lifts vehicle sales but does not subsidise your parts.

Where do EV parts come from, and what goes wrong with each source?

Your supplier sets your margin, warranty cover and risk. Most shops use more than one source.

What should you do in the first 90 days?

1. Choose your segment from electric registrations in your RTO area.
2. Get dealer and printed prices for your 20 likely best sellers from three suppliers, and drop parts whose margin does not cover returns.
3. Stock wear items and chargers; order batteries, controllers and inverters only against a customer order.
4. Train one person in high-voltage safety and fault tracing. EVreporter estimates only 15,000 to 20,000 trained EV technicians qualify each year, so a shop that can diagnose faults wins repeat work.
5. Sign up two or three e-rickshaw or scooter dealers as regular buyers before you consider assembly. The electric bike assembling guide shows what a full vehicle line involves.

Charging could be a side line: see the EV charging station franchise guide, and the EV and battery business ideas list for other options in this sector.

Frequently asked questions

Is an EV spare parts business profitable in India?

It can be, where enough electric vehicles sit within reach to buy from you repeatedly. Margins depend on your segment and supplier terms, and a shop serving e-rickshaws and scooters together is safer than one tied to a single scooter brand.

What is the profit margin on two-wheeler spare parts?

There is no reliable published margin for EV parts. Your margin per part is the gap between dealer price and printed price, so it varies by part and supplier. Ask three suppliers for both prices on your top 20 parts and calculate it before committing to stock.

Which EV parts are in high demand?

Batteries, chargers, controllers and wear items such as tyres and brakes sell most, in a mix that depends on the vehicle. Lead-acid sets on e-rickshaws typically need replacing about once a year, and power electronics are the most failure-prone parts after the battery. Buy expensive units to order.

Which are the major EV spare parts companies in India?

No single firm owns the aftermarket. Precedence Research’s 2026 list names battery makers such as Exide Industries, Amara Raja Batteries and Okaya Power, and component makers such as Bosch, Denso and Eastman Auto & Power. Check which of them supply EV parts through dealers in your state.