India Electric Vehicle Battery Market

Market Overview:

The India electric vehicle battery market is expected to exhibit a growth rate (CAGR) of 27% during 2023-2028. The rising air pollution and environmental concerns, decreasing battery costs, improving charging infrastructure, significant technological advancements, stringent government initiatives and industry collaborations to promote electric mobility are some of the major factors propelling the market.

An electric vehicle battery is a rechargeable energy storage device specifically designed for electric vehicles (EVs). It serves as the primary source of power to propel the vehicle and operate various electrical systems. The battery technology used in electric vehicles is lithium-ion (Li-ion), although other types, such as solid-state and lithium-polymer batteries, are also being researched and developed. Electric vehicle batteries consist of multiple individual battery cells that are interconnected to form a battery pack. These cells store electrical energy in a chemical form and convert it into electrical power when needed. The battery pack is usually located within the chassis of the electric vehicle and provides a high-voltage power supply to the electric motor, enabling the vehicle to move. The capacity or energy storage of an electric vehicle battery is typically measured in kilowatt-hours (kWh). The range of an electric vehicle largely depends on the capacity of its battery pack. Higher-capacity batteries allow for longer driving ranges before recharging is required.

India faces significant air pollution and environmental challenges, especially in densely populated cities. Due to this, the rising adoption of electric vehicles (EVs) with clean energy sources is seen as a crucial solution to mitigate air pollution and reduce greenhouse gas emissions. Additionally, the cost of EV batteries has been declining steadily due to advancements in battery technology, economies of scale, and increased manufacturing efficiency. This reduction in battery costs has made electric vehicles more affordable and attractive to consumers, driving the demand for EVs in India. Other than this, the development of a robust charging infrastructure is vital for the widespread adoption of electric vehicles. In recent years, India has witnessed significant progress in the deployment of public charging stations, fast-charging networks, and home-charging solutions. This infrastructure development is encouraging consumers to switch to electric vehicles by alleviating concerns about charging availability and accessibility. Besides this, continuous advancements in electric vehicle battery technology, such as improved energy density, longer range, and faster charging capabilities, are making electric vehicles more practical and convenient for Indian consumers. These technological innovations are boosting consumer confidence in electric vehicles and escalating the demand for EV batteries. Furthermore, the Government of India has implemented various policies and initiatives to promote electric mobility. These include financial incentives, tax benefits, and subsidies for EV buyers, as well as the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme. These initiatives aim to reduce pollution, dependence on fossil fuels, and promote a sustainable transportation ecosystem.

India Electric Vehicle Battery Market Trends/Drivers:

Government Initiatives

The Government of India has taken significant steps to promote electric mobility through various initiatives. One notable initiative is the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme. Launched in 2015 and subsequently extended, the scheme offers financial incentives and subsidies to electric vehicle buyers, making EVs more affordable and attractive. Additionally, the government provides tax benefits, lower GST rates, and exemption from road tax for electric vehicles. These measures aim to accelerate the adoption of EVs, reduce dependence on fossil fuels, and curb air pollution. The government has also set a target to achieve 30% electric vehicle penetration by 2030, further emphasizing its commitment to the growth of the electric vehicle battery market in India.

Rising Environmental Concerns

India faces severe air pollution challenges, particularly in major cities. With a high number of vehicles on the road, the transportation sector contributes significantly to pollution and greenhouse gas emissions. As a result, there is growing awareness and concern about the environmental impact of conventional vehicles. Electric vehicles powered by clean energy sources are seen as a viable solution to address these concerns. The government's focus on reducing pollution and improving air quality has led to policies and regulations that promote electric mobility, driving the demand for EV batteries in India.

India Electric Vehicle Battery Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the India electric vehicle battery market report, along with forecasts at the country and regional levels from 2023-2028. Our report has categorized the market based on battery type, propulsion type and vehicle type.

Breakup by Battery Type:

• Lithium-Ion Battery
• Nickel-Metal Hydride Battery
• Lead-Acid Battery
• Others
   

Lithium-ion battery dominates the market

The report has provided a detailed breakup and analysis of the market based on the battery type. This includes lithium-ion battery, nickel-metal hydride battery, lead-acid battery, and others. According to the report, lithium-ion battery represented the largest segment.

Lithium-ion batteries are the most widely used battery type in the electric vehicle market due to their high energy density, longer lifespan, and lighter weight compared to other battery chemistries. They offer superior performance and efficiency, enabling longer driving ranges for electric vehicles. Lithium-ion batteries are known for their fast-charging capabilities and have become the preferred choice for electric vehicle manufacturers. They dominate the market share for EV batteries in India, primarily due to their technological advancements and ongoing research to enhance their performance, safety, and cost-effectiveness.

Nickel-metal hydride (NiMH) batteries were widely used in earlier generations of hybrid electric vehicles (HEVs) and some early electric vehicle models. These batteries offer moderate energy density and are relatively cheaper compared to lithium-ion batteries. However, their market share has significantly declined in recent years as electric vehicle manufacturers have shifted towards lithium-ion technology due to its higher energy density and better overall performance. In India, the adoption of NiMH batteries in electric vehicles has been limited, and their use is mostly seen in specific applications where cost considerations are more significant than energy density requirements.

Lead-acid batteries have a long history of use in conventional internal combustion engine vehicles. In the context of electric vehicles, lead-acid batteries are typically used in low-speed electric vehicles (LSEVs) or electric rickshaws due to their lower cost compared to other battery technologies. However, their market share in the overall electric vehicle battery market in India is relatively small. Lead-acid batteries have limitations in terms of energy density, weight, and cycle life, making them less suitable for electric vehicles that require higher performance and longer driving ranges. As electric vehicle technology evolves and the demand for more capable electric vehicles increases, the dominance of lead-acid batteries in the Indian market is expected to further diminish.

Breakup by Propulsion Type:

• Battery Electric Vehicles
• Plug-in Hybrid Electric Vehicles
• Hybrid Electric Vehicles
   

Hybrid electric vehicles hold the largest share in the market

A detailed breakup and analysis of the market based on the propulsion type has also been provided in the report. This includes battery electric vehicles, plug-in hybrid electric vehicles, and hybrid electric vehicles. According to the report, hybrid electric vehicles accounted for the largest market share.

Battery electric vehicles are fully electric vehicles that rely solely on electric power stored in the vehicle's battery for propulsion. They do not have an internal combustion engine and produce zero tailpipe emissions. BEVs are gaining significant traction in the market due to their environmental benefits and advancements in battery technology. They offer long driving ranges, fast charging capabilities, and are suitable for various vehicle segments, ranging from compact cars to SUVs. The market share of BEVs in India has been increasing steadily, driven by government incentives, growing charging infrastructure, and consumer demand for clean and sustainable transportation options.

Plug-in hybrid electric vehicles combine an internal combustion engine with an electric motor and a battery. They can be charged by plugging into an external power source, allowing for all-electric driving for shorter distances and utilizing the internal combustion engine for longer journeys. PHEVs offer the advantage of extended range and flexibility, as they can operate in electric mode or switch to hybrid mode when needed. In the Indian market, PHEVs provide a transitional solution for consumers who seek the benefits of electric driving while having the convenience of a backup internal combustion engine. However, their market share in India is relatively smaller compared to BEVs, primarily due to the focus on promoting full electrification through battery electric vehicles.

Hybrid electric vehicles feature both an internal combustion engine and an electric motor. Unlike PHEVs, they do not have a plug-in option and rely on regenerative braking and engine power to recharge their smaller battery. HEVs offer improved fuel efficiency, reduced emissions, and are well-suited for city driving conditions. They are gaining some popularity in India, particularly in segments such as sedans and hatchbacks, where fuel efficiency is a significant consideration for consumers. However, the market share of HEVs in India is relatively limited compared to BEVs and PHEVs, as the focus of the Indian government and the industry is shifting towards promoting fully electric vehicles as a sustainable mobility solution.

Breakup by Vehicle Type:

• Passenger Car
• Commercial Vehicles
• Two-Wheeler
   

Passenger car represents the most popular vehicle type

The report has provided a detailed breakup and analysis of the market based on the vehicle type. This includes passenger car, commercial vehicles, and two-wheeler. According to the report, passenger car represented the largest segment.

The passenger car segment encompasses electric vehicles designed for personal transportation. These include sedans, hatchbacks, SUVs, and other passenger vehicles. The passenger car segment has witnessed significant growth in the electric vehicle market in India. The availability of various electric car models, advancements in battery technology, and government incentives have contributed to the rising adoption of electric passenger cars. Both domestic and international automakers are introducing electric car models to cater to the increasing demand for clean and sustainable personal transportation options.

The commercial vehicle segment includes electric vehicles designed for commercial use, such as buses, trucks, vans, and three-wheelers. Electric commercial vehicles offer several benefits, including reduced operating costs, lower emissions, and improved environmental sustainability. The government of India has been actively promoting the adoption of electric commercial vehicles through various schemes, subsidies, and incentives. As a result, the market for electric commercial vehicles is witnessing significant growth, with several manufacturers introducing electric buses, delivery vans, and other commercial electric vehicle models.

The two-wheeler segment comprises electric motorcycles, scooters, and bicycles. Electric two-wheelers have gained substantial popularity in India, primarily due to their affordability, ease of maneuverability in congested traffic conditions, and lower maintenance costs. The market for electric two-wheelers in India has experienced rapid growth, with a wide range of electric scooter and motorcycle models available in the market. The government's focus on promoting electric mobility and providing subsidies for electric two-wheelers has further fueled the adoption of electric scooters and motorcycles as a sustainable mode of personal transportation.

Breakup by Region:

• North India
• West and Central India
• South India
• East India
   

The report has also provided a comprehensive analysis of all the major regional markets, which include North India, West and Central India, South India, and East India.

The North India region has emerged as a significant market for electric vehicles due to its high population density, increasing urbanization, and rising environmental concerns. North India is home to major metropolitan cities like Delhi, which face severe air pollution challenges, driving the demand for cleaner transportation options. The region has witnessed the establishment of charging infrastructure and the introduction of various electric vehicle models to cater to the growing consumer demand for electric cars, two-wheelers, and commercial vehicles. State governments in North India have also implemented policies and incentives to promote electric mobility, further propelling the market growth in this region.

The West and Central India has witnessed significant growth in the electric vehicle market. Maharashtra, with cities like Mumbai and Pune, has emerged as a prominent hub for electric vehicle adoption, supported by the availability of charging infrastructure, government initiatives, and a favorable ecosystem for electric mobility startups. Gujarat has also seen significant investments in electric vehicle manufacturing and has attracted major players in the electric vehicle ecosystem. The region's strategic location, industrial development, and supportive policies have contributed to the growth of the electric vehicle market in West and Central India.

Southern states of India have witnessed substantial growth in the electric vehicle market, driven by a combination of factors. Karnataka, with cities like Bengaluru, has emerged as a major center for electric vehicle manufacturing and research and development. The state has a favorable ecosystem for electric mobility startups and hosts key players in the electric vehicle industry. Tamil Nadu is another significant state in the electric vehicle market, with the presence of manufacturing facilities for electric vehicles and components. South India also benefits from strong government support, growing charging infrastructure, and a higher awareness and acceptance of electric vehicles among consumers, contributing to the market growth in this region.

While the electric vehicle market in East India is still in its nascent stage compared to other regions. Government initiatives, incentives, and awareness campaigns are being implemented to promote electric mobility in the region. Major cities like Kolkata are witnessing an increasing number of electric vehicles on the roads, and efforts are being made to establish charging infrastructure and encourage the adoption of electric two-wheelers and rickshaws. The region has the potential for future growth in the electric vehicle market, driven by increasing consumer awareness, supportive policies, and infrastructure development initiatives.

Competitive Landscape:

Major automakers, both domestic and international, have invested heavily in electric vehicle manufacturing and research and development. They have introduced a wide range of electric vehicle models with improved performance, longer ranges, and enhanced features. These companies are continuously innovating to enhance battery technology, charging infrastructure, and vehicle design to meet consumer demands and address range anxiety concerns. Additionally, key players in the electric vehicle market have been actively involved in the expansion of charging infrastructure networks. This includes establishing public charging stations, collaborating with government agencies, and partnering with charging infrastructure providers. By improving the availability and accessibility of charging infrastructure, these players aim to alleviate consumer concerns about range limitations and encourage wider adoption of electric vehicles. Other than this, companies in the electric vehicle ecosystem have formed strategic partnerships and collaborations to accelerate market growth. Automakers have joined forces with battery manufacturers, technology companies, and charging infrastructure providers to leverage expertise and resources. These collaborations aim to drive innovation, improve battery technology, reduce costs, and enhance the overall electric vehicle ownership experience. Besides this, key players in the electric vehicle ecosystem have formed strategic partnerships and collaborations to accelerate market growth. Automakers have joined forces with battery manufacturers, technology companies, and charging infrastructure providers to leverage expertise and resources. These collaborations aim to drive innovation, improve battery technology, reduce costs, and enhance the overall electric vehicle ownership experience.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Amara Raja Batteries Limited
• Exicom Tele-Systems Limited
• Exide Industries Ltd.
• Okaya Power Pvt. Ltd.
• Panasonic India Private Limited (Panasonic Corporation)
• Samsung SDI Company Limited
• TataAutoComp GY Batteries Private Limited
• Toshiba India Pvt. Ltd.

India Electric Vehicle Battery Market Report Scope:

Key Questions Answered in This Report:

• How has the India electric vehicle battery market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the India electric vehicle battery market?
• What is the impact of each driver, restraint, and opportunity on the India electric vehicle battery market?
• What are the key regional markets?
• Which is the most attractive country in the India electric vehicle battery market?
• What is the breakup of the market based on the battery type?
• Which is the most attractive battery type in the India electric vehicle battery market?
• What is the breakup of the market based on the propulsion type?
• Which is the most attractive propulsion type in the India electric vehicle battery market?
• What is the breakup of the market based on the vehicle type?
• Which is the most attractive vehicle type in the India electric vehicle battery market?
• What is the competitive structure of the India electric vehicle battery market?
• Who are the key players/companies in the India electric battery vehicle market?

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the electric vehicle battery market from 2017-2028.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the India electric vehicle battery market.
• The study maps the leading, as well as the fastest-growing, regional markets.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the electric vehicle battery industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.