'It is important that certain automotive components, which are being imported from China purely on the back of cost competitiveness and development capabilities, be manufactured here,' said Niti Aayog CEO Amitabh Kant.
'We should not become a major importing nation in electric-vehicle components like we've done in solar,' said Mr Kant.
India is trying to diversify its supply chains away from China after clashes between the two occurred regarding the Himalayan border.
The Covid crisis and global trade tensions with China have intensified the need for countries to move manufacturing bases out of the country to reduce supply-chain risks.
'You've got to de-risk the supply chain by boosting localisation, reducing dependency on imports and I would like to say imports from China,' said Mr Kant.
'Indian manufacturers must clearly read the writing on the wall and aim to secure a strategic position in the global value chain,' he said.
Said Maruti Suzuki India chairman RC Bhargava: 'Electrification can only happen at large scale in India when the customer finds it is in his interest to buy an electric vehicle rather than an internal combustion engine.'
'Given the state of infrastructure in various areas, this process will take some time and the internal combustion engine vehicle will continue to be in production for many, many years,' said Mr Bhargava.