Vehicles, ships, rail, aircraft: Value chain, from upstream to the customer
Cars, two-wheelers, trucks, ships, rail and aircraft makers and suppliers
Value chain, from upstream to the customer
Criticality to the chain: 5 · Chokepoint 4 · Critical 3 · Important 2 · Supporting 1 · Commodity service Stage 1 Materials and battery supplySupply automotive sheet steel, aluminium sheet and castings, and titanium and nickel alloys for aircraft and ships.
Why important: Several qualified mills per region for steel and aluminium, but aerospace-grade titanium and superalloys have very few certified sources. Technologies Advanced high-strength steel Hot stamping Aluminium sheet and extrusions Titanium and nickel superalloys Depends on Commodities St SteelAl AluminiumTi TitaniumNi NickelZn Zinc Chemicals O2 Oxygen Energy Kc Coking coalHI Energy-intensive industry Industries Metal productsExamples: JSW Steel, Tata Steel, Hindalco (Novelis), POSCO, Nippon SteelMake cathode and anode materials, cells and packs for electric cars, buses and two-wheelers.2,4
Why chokepoint: China produces more than three-quarters of the world's batteries and dominates battery materials, and makes over 70% of electric cars, so few non-Chinese alternatives exist at scale2,4. Technologies Lithium iron phosphate (LFP) cells Nickel-rich NMC cells Cell-to-pack design Sodium-ion cells Battery management systems Depends on Commodities Li LithiumNi NickelCo CobaltGr GraphiteMn ManganeseCu Copper Chemicals CAM Battery cathode materialsAAM Battery anode materialsLiPF6 Battery electrolytesPTFE Fluoropolymers (PTFE, PVDF) Energy LFP Lithium iron phosphate batteriesNMC Nickel-rich lithium-ion batteriesDist Distribution grids, mini-grids and interconnectors Industries Electrical equipmentExamples: CATL, BYD, LG Energy Solution, Panasonic Energy, Agratas (Tata Group)Design and make powertrains, brakes, steering, wiring harnesses, seats, lighting and electronics modules for vehicle makers.
Why important: Several global suppliers per system, but each part is validated for a specific model, so switching usually waits for a model change or a costly re-validation. Technologies Fuel injection and transmissions Electric drive units Brake-by-wire and ADAS Wiring harnesses Lightweight interiors Depends on Commodities Cu CopperAl AluminiumPt PlatinumPd Palladium Chemicals PGM AutocatalystsPP PolypropyleneABS ABSPA Nylon (PA6, PA66) Energy Mot Electric motors and drives Industries Plastic and rubber productsElectrical equipmentExamples: Bosch, Denso, ZF, Samvardhana Motherson, Sona ComstarSupply microcontrollers, power semiconductors (IGBT, silicon carbide), sensors and memory used in every modern vehicle.5
Why chokepoint: A few firms on mature nodes supply most auto chips and qualification takes years; when China blocked exports from Nexperia's Chinese plants in October 2025, a firm with about 5% of auto discrete chips, Honda had to halt a Canadian plant5. Technologies Automotive-grade microcontrollers Silicon carbide power devices Radar and image sensors Mature-node foundry processes Depends on Commodities Si SiliconGa Gallium Chemicals pSi PolysiliconESG Electronic specialty gases Energy Dist Distribution grids, mini-grids and interconnectors Industries SemiconductorsExamples: Infineon, NXP, Renesas, STMicroelectronics, Texas InstrumentsMake the sintered neodymium magnets and permanent-magnet motors that drive EVs, power steering and many small actuators.3
Why chokepoint: China made 94% of sintered permanent magnets in 2024, and its April 2025 export licences cut magnet exports sharply in April and May, forcing some carmakers to slow or stop lines3. Technologies Sintered NdFeB magnets Heavy-rare-earth grain-boundary diffusion Rare-earth-free motor designs Hairpin stator winding Depends on Commodities REE Rare earthsCu CopperB Boron Energy Mot Electric motors and drives Industries Electrical equipmentExamples: JL Mag Rare-Earth, Proterial, Shin-Etsu Chemical, Sona ComstarSupply tyres, safety glass, seat covers, belts and airbags.
Why supporting: Competitive global supply with strong Indian makers; switching between qualified brands takes weeks to months. Technologies Radial tyre building Laminated and tempered glass Technical textiles for airbags Silica-filled low-rolling-resistance tyres Depends on Commodities Rbr Natural rubberQz Silica sandSda Soda ash Chemicals SBR Styrene-butadiene rubberBR Polybutadiene rubberCB Carbon blackPA Nylon (PA6, PA66)PSF Polyester fibre Energy Gas Natural gas Industries Plastic and rubber productsTextiles and leatherExamples: MRF, Apollo Tyres, Michelin, Saint-Gobain SekuritSupply press lines, welding robots, paint shops, dies and assembly automation for vehicle and component plants.
Why important: A handful of global vendors supply complete press, body and paint lines, and dies and lines for a new model are built to order well ahead of launch. Technologies Servo press lines Welding and handling robots Electrostatic paint shops Giga-casting machines Die design Depends on Commodities St Steel Chemicals Pnt Paints and coatings Energy Mot Electric motors and drivesGas Natural gas Industries Machinery and equipmentSoftware and IT servicesExamples: ABB, Fanuc, Durr, Schuler, Idra (LK Group)Design, engineer and assemble vehicles, own the brand and manage the supplier base and dealer network.1,2
Why critical: A few dozen groups make most vehicles and each model's supply chain is built around one maker, though buyers can switch brands. Technologies Modular platforms Battery-electric and hybrid powertrains Software-defined vehicle architecture Lean and just-in-time production CNG and flex-fuel engines Depends on Commodities St SteelAl AluminiumCu Copper Chemicals Pnt Paints and coatingsAdh Adhesives and sealantsPP Polypropylene Energy ICV Combustion road vehiclesEV Electric and hybrid vehiclesDist Distribution grids, mini-grids and interconnectors Industries Metal productsSemiconductorsMachinery and equipmentExamples: Toyota, BYD, Maruti Suzuki, Tata Motors Passenger Vehicles, Hero MotoCorpBuild commercial aircraft, ships and locomotives, coaches and metro trains, usually to long-term orders from airlines, shipowners and railways.
Why chokepoint: Two firms build almost all large passenger jets and three countries build most ships, so backlogs stretch years. Technologies Composite airframes Jet engines (supplied by GE, Rolls-Royce, Safran, Pratt & Whitney) Block shipbuilding Electric locomotives and Vande Bharat trainsets Dual-fuel ship engines Depends on Commodities Ti TitaniumAl AluminiumSt SteelNi Nickel Chemicals EPX Epoxy resinsPnt Paints and coatings Energy Jet Aviation propulsionShp Ship propulsionRail Rail traction Industries Metal productsElectrical equipmentAerospace and defenceExamples: Airbus, Boeing, HD Hyundai Heavy Industries, CRRC, Cochin ShipyardTest and certify vehicles, aircraft and ships against safety and emission rules before they can be sold or operated.
Why critical: Each market has one approval route; delayed certification can hold back a model or aircraft for months or years. Technologies Crash and emission testing Airworthiness certification Ship classification rules Bharat NCAP ratings Depends on Energy Bld Energy in buildings Industries Public administration, defence and securityExamples: ARAI, ICAT, DGCA, EASA, Indian Register of ShippingSell vehicles to customers, arrange registration, insurance and finance, and run workshops.
Why supporting: Dealers are many and replaceable per territory, though large dealer groups carry weight. Technologies Dealer management systems Online booking Used-vehicle platforms Depends on Energy Bld Energy in buildings Industries Wholesale and retail tradeReal estateExamples: Penske Automotive Group, Landmark Cars, Popular Vehicles and Services, Cars24Lend to buyers, lease aircraft and fleets, and insure vehicles, which together make most sales possible.
Why important: Most vehicles are bought on credit, so rate rises or credit stress cut sales quickly, though lenders compete. Technologies Instant credit underwriting Operating leases Telematics-based insurance Residual-value management Depends on Industries Finance: banking, insurance, marketsExamples: Mahindra Finance, Bajaj Finance, Toyota Financial Services, AerCapRepair and maintain vehicles, sell replacement parts, and supply fuel or electricity over the vehicle's life.
Why supporting: Workshops and fuel stations are plentiful; EV charging is thinner but growing fast. Technologies Diagnostics software Parts e-commerce DC fast charging Battery swapping Depends on Chemicals Lub Lubricant additives Energy Oil Crude oilDist Distribution grids, mini-grids and interconnectorsLPG CNG, LPG and biogas distribution Industries Computers and electronicsExamples: Bosch Car Service, Tata Power EZ Charge, Indian Oil, Ather Grid