The India Electric Vehicle Battery Market reached a size of USD 2,215 Million in 2024. It is forecasted to grow to USD 13,891 Million by 2033, exhibiting a CAGR of 22.6% during the 2025-2033 period. This growth is propelled by rising air pollution and environmental concerns, declining battery costs, technological advancements, improving charging infrastructure, and stringent government initiatives promoting electric mobility. The report presents a thorough review featuring the India Electric Vehicle Battery Market Growth, share, trends, and research of the industry.

STUDY ASSUMPTION YEARS

• Base Year: 2024

• Historical Year/Period: 2019-2024
• Forecast Year/Period: 2025-2033

INDIA ELECTRIC VEHICLE BATTERY MARKET KEY TAKEAWAYS

• Current Market Size: USD 2,215 Million in 2024
• CAGR: 22.6%
• Forecast Period: 2025-2033
• The market is driven by declining battery costs and improving charging infrastructure.
• Lithium-ion batteries dominate the market due to their high energy density and performance.
• Hybrid electric vehicles hold the largest share by propulsion type.
• Passenger cars are the most popular vehicle type segment in the electric vehicle battery market.
• North India is a significant regional market with a robust consumer and policy environment.

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MARKET TRENDS

The Government of India promotes electric mobility aggressively, exemplified by the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme offering financial incentives and subsidies since 2015. Tax benefits, lower GST rates, and exemptions from road tax are also provided, aiming for 30% electric vehicle penetration by 2030, intensifying demand for EV batteries.

Air pollution concerns in India’s metropolitan cities have made electric vehicles a vital solution. Policies and regulations focusing on clean energy sources for reducing emissions encourage adoption. This environmental awareness strengthens the EV battery market growth as it aligns with objectives to improve air quality.

The market is also shaped by the rise in charging infrastructure including public charging stations, fast charging networks, and home-charging solutions. This infrastructure progress mitigates range anxiety and supports consumer transition to electric vehicles, further driving sales in the Indian electric vehicle battery sector.

MARKET GROWTH FACTORS

Advancements in battery technology, such as improved energy density, longer driving ranges, and faster charging capabilities, are making EVs more practical for Indian consumers. These technological enhancements boost consumer confidence and escalate EV battery demand nationally.

Cost reductions in EV batteries through technology improvements, economies of scale, and manufacturing efficiency have made electric vehicles more affordable. This cost decline is a direct growth driver, enabling wider EV adoption and thus expanding the battery market.

Government initiatives providing financial incentives, tax breaks, and subsidies under the FAME scheme incentivize buyers. These measures aim to curb fossil fuel dependency and air pollution, establishing a sustainable transportation ecosystem fostering the electric vehicle battery market's expansion.

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MARKET SEGMENTATION

Breakup by Battery Type:

• Lithium-Ion Battery: Dominates the market, appreciated for high energy density, longer lifespan, lighter weight, and fast-charging capabilities.
• Nickel-Metal Hydride Battery: Used earlier mainly in hybrid-electric vehicles, offers moderate energy density but has declined due to lithium-ion preference.
• Lead-Acid Battery: Used in low-speed vehicles and rickshaws due to low cost but has small market share owing to limitations in energy density and lifespan.
• Others: Includes emerging types such as solid-state and lithium-polymer batteries under research and development.

Breakup by Propulsion Type:

• Battery Electric Vehicles (BEVs): Fully electric vehicles with growing market share due to environmental benefits and improved battery technology.
• Plug-in Hybrid Electric Vehicles (PHEVs): Combine combustion engine and electric motor, offer flexible driving range but smaller market share.
• Hybrid Electric Vehicles (HEVs): Feature engine plus electric motor without plug-in charging, represent the largest market share due to improved fuel efficiency.

Breakup by Vehicle Type:

• Passenger Car: Largest segment, consisting of sedans, hatchbacks, SUVs, benefiting from government incentives and increasing availability.
• Commercial Vehicles: Includes buses, trucks and three-wheelers, growing with government promotion for sustainable transport.
• Two-Wheeler: Rapidly growing segment comprising electric motorcycles and scooters due to affordability and ease of use.

Breakup by Region:

• North India: Significant market due to dense population, urbanization, pollution concerns, and supportive policies.
• West and Central India: Growth hub including Maharashtra and Gujarat with strong infrastructure and manufacturing.
• South India: Substantial growth from Karnataka and Tamil Nadu with manufacturing and R&D centers.
• East India: Nascent market but growing with government incentives and awareness campaigns.

REGIONAL INSIGHTS

North India emerges as the dominant region due to its high population density, severe pollution challenges, and robust government policies enhancing electric vehicle adoption. Major cities like Delhi have developed charging infrastructure and introduced various EV models catering to passenger cars, two-wheelers, and commercial vehicles, driving market growth in this key region.

KEY PLAYERS

• Aqueouss
• Batteryinc
• Battrixx
• Bharatcell
• EV Battery Solutions
• Exicom Energy Systems Pvt. Ltd
• Exide Industries Limited
• Grinntech Motors & Services Pvt. Ltd.
• Ipower batteries
• Yuki Electric India Pvt Ltd

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