Adaptation, Circularity and Informality in Delhi’s Auto Parts Economy

Abstract:

Through ethnographic fieldwork in Delhi’s auto spare-parts markets, this paper examines how market actors adapt to the electric vehicle (EV) transition amidst growing ideological environments of ‘protectionism’ and ‘self-reliance’ (‘Atmanirbhar Bharat’). India’s two-wheeler and three-wheeler segments—which account for the highest EV penetration in the country—have been rapidly growing over the last decade. In fact, the penetration of electric vehicles began with the introduction of these segments. A diverse range of manufacturers shapes these segments—from OEMs like Hero and TVS to local informal assemblers. The life of vehicles in these segments is structurally tied to spare-parts markets that supply replacement components and accessories.

An examination of these markets reveal a dependence on Chinese parts. Yet market actors emphasize their capacity for ‘adaptability in repairing’ and ‘working with’ whatever components arrive. With an engagement with the low-priced unorganized market of two- and three-wheeler segments and its spare-parts economy, it sheds light on the continuities as well as departures that the ‘electric’ introduces in existing market ecologies. While doing so, the paper prompts us to think beyond the binary of ‘linear’ and ‘circular economy’.

The two-wheeler market dominates the Indian automobile sector, comprising over 70% of registered vehicles. The three-wheeler segment has both autos as well as e-rickshaws that are intrinsic to urban mobility and last mile connectivity in India. With the arrival of electric vehicles, both segments have undergone significant transformation. The auto spare parts markets remain integral to the wider auto sector ecosystem, supplying customers as well as repair and service shops with replaceable parts and accessories. Beyond the big corporations, these markets can be characterised as operating in a space between ‘formal’ and ‘informal’ with high levels of fragmentation, complex supply chains and adaptability. The coming of EV has also reconfigured the spare parts and accessories markets. Through on-going fieldwork, this paper traces how the electric vehicle transition is reconfiguring the spare-parts economy in New Delhi, and what these changes reveal about market adaptability, circular practices and informality in contexts of technological and political uncertainty.