Indian Electric Vehicle Battery Manufacturing Market Size was valued at USD 17.2 Billion in 2022. The Indian Electric Vehicle Battery Manufacturing market industry is projected to grow from USD 19.1 Billion in 2023 to USD 44.0 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 11.00% during the forecast period (2024 - 2032). Increasing options for EVs due to environmental concerns, fuel cost savings, and government incentives are the main market drivers anticipated to propel the Electric Vehicle Battery Manufacturing market in India.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The rising demand for electric vehicles (EVs) in India is a significant driver propelling the growth of the Indian Electric Vehicle Battery Manufacturing Market CAGR. As consumers increasingly opt for EVs due to environmental concerns, fuel cost savings, and government incentives, there is a corresponding surge in the demand for electric vehicle batteries. These batteries are a critical component of EVs, and their manufacturing forms a substantial portion of the EV value chain. To meet this escalating demand, battery manufacturers are ramping up production capacities and investing in research and development to improve battery technology, energy density, and charging capabilities. This surge in demand for electric vehicles is thus directly stimulating the expansion and development of the electric vehicle battery manufacturing industry in India.
Government initiatives and policies play a pivotal role in driving the Indian Electric Vehicle Battery Manufacturing Market. India has introduced various schemes and incentives to promote electric mobility and domestic battery manufacturing. The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme provides subsidies and incentives for the adoption of electric vehicles and supports the development of charging infrastructure. Additionally, the National Electric Mobility Mission Plan (NEMMP) aims to accelerate the adoption of electric vehicles and promote indigenous manufacturing of electric vehicle components, including batteries. These initiatives create a favorable regulatory environment, incentivize investment in battery manufacturing facilities, and encourage collaboration between government agencies, industry stakeholders, and research institutions. Consequently, government support acts as a catalyst for the growth and expansion of the Indian Electric Vehicle Battery Manufacturing Market. Thus, driving the Indian Electric Vehicle Battery Manufacturing market revenue.
The Indian Electric Vehicle Battery Manufacturing market segmentation, based on battery type, includes Lithium-Ion Battery, Nickel-Metal Hydride Battery, Lead-Acid batteries, and Others. The lithium-ion battery segment dominated the market mostly. Lithium-ion batteries have secured the largest market share in the Indian Electric Vehicle Battery Manufacturing Market due to several key factors. These batteries are widely used because of their high energy density, longer lifespan, and lighter weight compared to other battery chemistries. Additionally, strategic initiatives by the Indian government, such as the FAME II scheme and the Production-Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) battery storage, have catalyzed demand for lithium-ion batteries.
Nickel-metal hydride (NiMH) batteries are experiencing growth in the Indian Electric Vehicle Battery Manufacturing Market due to their established presence in hybrid electric vehicles (HEVs) and potential applications in certain types of electric vehicles. While lithium-ion batteries dominate the market, NiMH batteries are favored in specific EV segments due to their lower cost and proven reliability. As the demand for HEVs and niche electric vehicle models increases, NiMH batteries are witnessing a higher compound annual growth rate (CAGR) in the Indian market.
The Indian Electric Vehicle Battery Manufacturing market segmentation, based on propulsion type, includes Battery Electric Vehicles, Plug-in Hybrid Electric Vehicles and Hybrid Electric Vehicles. The battery electric vehicles category generated the most income. Battery electric vehicles (BEVs) have captured the largest market share in the Indian Electric Vehicle Battery Manufacturing Market due to their zero-emission propulsion system and increasing adoption by consumers and fleet operators. BEVs rely solely on electric batteries for propulsion, eliminating the need for internal combustion engines. As India moves towards cleaner and sustainable transportation solutions, the demand for BEVs has surged, leading to a corresponding increase in the country's production and deployment of electric vehicle batteries.
Plug-in hybrid electric vehicles (PHEVs) are experiencing the highest compound annual growth rate (CAGR) in the Indian Electric Vehicle Battery Manufacturing Market due to their versatility and ability to offer both electric and internal combustion engine propulsion. PHEVs combine the benefits of electric and conventional vehicles, providing extended driving range and reduced emissions. As consumers seek vehicles with greater flexibility and reduced environmental impact, the demand for PHEVs is increasing, driving the growth of battery manufacturing specifically tailored for these vehicles in India.
The Indian Electric Vehicle Battery Manufacturing market segmentation, based on vehicle type, includes Passenger car, Commercial Vehicles and Two-Wheeler. Passenger cars have captured the largest market share in the Indian Electric Vehicle Battery Manufacturing Market due to their widespread adoption among consumers. As India strives to address environmental concerns and reduce carbon emissions, there has been a significant push towards electrifying passenger vehicles. With government incentives, growing consumer awareness, and advancements in technology, electric passenger cars have become increasingly popular, driving the demand for electric vehicle batteries tailored for this vehicle segment in the Indian market.
Commercial vehicles are experiencing the highest compound annual growth rate (CAGR) in the Indian Electric Vehicle Battery Manufacturing Market due to several factors. Government regulations aimed at reducing emissions from commercial fleets, coupled with the potential for significant cost savings from transitioning to electric vehicles, are driving the adoption of electric commercial vehicles. Additionally, improvements in battery technology and charging infrastructure are making electric commercial vehicles more viable for fleet operators, leading to the rapid growth of this segment in the Indian market.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
India's Electric Vehicle Battery Manufacturing Market is witnessing robust growth driven by increasing government initiatives, rising environmental awareness, and growing consumer demand for electric vehicles (EVs). Government schemes such as FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) and NEMMP (National Electric Mobility Mission Plan) incentivize EV adoption and domestic battery manufacturing. Lithium-ion batteries dominate the market due to their superior performance and suitability for EVs. Passenger cars constitute the largest market share, but commercial vehicles are experiencing the highest growth rate. Overall, India's electric vehicle battery manufacturing sector is poised for significant expansion, supported by favorable government policies and the country's commitment to sustainable transportation solutions.
Leading players are focused on expanding production capacities, enhancing battery technology, and forming strategic partnerships. Companies like Exide Industries, Amara Raja Batteries, and Tata Chemicals are investing in research and other market developments to improve battery performance and reduce costs. Additionally, collaborations between battery manufacturers and electric vehicle OEMs are becoming increasingly common to ensure seamless integration of batteries into vehicles. These efforts aim to capitalize on the growing demand for electric vehicles and establish a strong foothold in India's rapidly evolving electric vehicle battery market.
Major players in the Indian Electric Vehicle Battery Manufacturing market are attempting to increase market demand by investing in research and development operations includes Exide Industries Limited, Amara Raja Batteries Limited, Tata Chemicals Limited, HBL Power Systems Limited, Eveready Industries India Limited, Luminous Power Technologies Pvt. Ltd., Okaya Power Pvt. Ltd., Greenvision Technologies Pvt. Ltd., Coslight India Telecom Pvt. Ltd. and Ultralife Corporation.
July 2022: Sanvaru Technology has declared an extension of its Lithium-ion battery manufacturing capability to 400 MWh annually in India. This expansion is anticipated to address the escalating demand for batteries in India's burgeoning EV sector.
May 2022: Nexcharge, a collaboration between Exide, an Indian battery manufacturer, and Leclanche SA of Switzerland, commenced operations at a lithium-ion battery facility in Gujarat. The plant, with an installed capacity of 1.5 GWh, is capable of manufacturing batteries for various applications, including energy storage and automotive purposes.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 17.2 Billion |
| Market Size 2023 | USD 19.1 Billion |
| Market Size 2032 | USD 44.0 Billion |
| Compound Annual Growth Rate (CAGR) | 11.00% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019-2023 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Battery Type, Propulsion Type, Vehicle Type, and Region |
| Countries Covered | India |
| Key Companies Profiled | Exide Industries Limited, Amara Raja Batteries Limited, Tata Chemicals Limited, HBL Power Systems Limited, Eveready Industries India Limited, Luminous Power Technologies Pvt. Ltd., Okaya Power Pvt. Ltd., Greenvision Technologies Pvt. Ltd., Coslight India Telecom Pvt. Ltd. and Ultralife Corporation |
| Key Market Opportunities | ·      Growing Investment in research and development to improve battery technology ·      Rising Development of charging infrastructure and battery swapping stations |
| Key Market Dynamics | ·      Rising Demand for Electric Vehicles ·      Increasing Government Initiatives and Policies |
Frequently Asked Questions (FAQ) :
The Indian Electric Vehicle Battery Manufacturing market size was valued at USD 19.1 Billion in 2023.
The market is projected to grow at a CAGR of 11.00% during the forecast period, 2024-2032.
The key players in the market are Exide Industries Limited, Amara Raja Batteries Limited, Tata Chemicals Limited, HBL Power Systems Limited, Eveready Industries India Limited, Luminous Power Technologies Pvt. Ltd., Okaya Power Pvt. Ltd., Greenvision Technologies Pvt. Ltd., Coslight India Telecom Pvt. Ltd. and Ultralife Corporation.
The lithium-ion battery category dominated the market in 2023.
The battery electric vehicles category had the largest share of the market.
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