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India Electric Vehicle Battery and Storage Trends

Overview

The growth of electric vehicles (EVs), hybrid electric vehicles (HEVs), and plug-in hybrid electric vehicles (PHEV) in the Indian automotive sector is being propelled incentives for carbon emission cutting, environmentally friendly technologies, rising fuel costs, and changing consumer preferences.

India is currently the world’s third largest internal combustion engine (ICE) car market, behind only China and the United States. However, the Government of India’s (GOI) push toward e-mobility, incentivized by programs such as the Faster Adoption and Manufacturing of Electric and Hybrid Vehicles (FAME), is turning consumer preferences toward EV ownership. In 2023, the market was valued at $8 million and is projected to grow from $23 billion in 2024 to $118 billion by 2032, at a compounded annual growth rate (CAGR) of 22.4% over the forecast period. This projected surge in EV sales is opening tremendous opportunities for EV battery technologies materials, battery management systems (BMS), and battery energy storage systems (BESS).


Market Dynamics and Segmentation

Technology and price factors influence the market growth for EV batteries, materials, BMS, and BESS. EV battery cost in India has declined 85% in the last decade, leading to the faster adoption of EV vehicles. For instance, the prices of battery packs dropped to $1.67 per kilowatt hour (KWh) in 2023, a 14% drop from $1.93 KWh in 2022. Lithium-ion batteries (LiB) have predominantly been used in India for EVs; however, the industry is looking for alternate technology and solutions, such as nickel and cobalt chemistries, due to LiB-related fire incidents. Industry journals estimate Indian demand for EV lithium batteries will surge to 139 GWh by 2035, a jump from 4GWh in 2023. Most of the demand increase is projected to come from the economically vital light vehicle segment. Analysts expect EV battery segment growth should boost the growth of ancillary products and services such as BMS and BESS.

Opportunities for U.S. Companies

U.S. companies have a strong reputation for innovative technologies and after-sales service, making them highly competitive in India’s EV battery and storage subsector. U.S. companies stand to benefit significantly from the burgeoning Indian EV sector by:

  • Exporting innovative and high-quality battery products and solutions that conform to global standards
  • Design and supply of BMS and BESS
  • Charging infrastructure that includes charging station, connectors
  • Battery swapping stations
  • Materials reuse and recycling
  • Supplying safety features and technologies aligned with India’s evolving EV landscape
  • Providing advanced technological solutions, including IoT-based accessories

The experienced U.S. Commercial Service team in India can help your market entry or expansion in the Indian subcontinent. For further information regarding opportunities in this sector, please reach out to your local U.S. office or contact the U.S. Commercial Service in India.
 

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