Greaves Cotton is looking to invest in battery manufacturing and supply chain for electric vehicles (EVs) is expected to enhance their business in electric vehicle battery industry which will propel the India electric vehicle battery market in forecast period.
India: The 160-year old Greaves Cotton, which is traditionally known as a manufacturer of diesel engines, generators, and pump sets, is planning to invest in the manufacturing of electric vehicle battery and supply chain for electric vehicles (EVs) in the coming years. The engineering company, which has in the recent years diversified into marine, defence and construction equipment, had acquired a majority stake of 67% in Ampere Vehicles, in August last year, which makes electric scooters. The company had earmarked Rs150 crore to be spent on Ampere over the next three years as it looks to capitalize on the government’s thrust on EVs through incentives under the FAME 2 scheme. This envisages an investment of Rs 10,000 crore in the next three years to develop the EV ecosystem. Through it, they will be developing a robust local infrastructure by a partnership or standalone investment, possibly in lithium-ion batteries.
According to BlueWeave Consulting, there is a rise in the demand for zero-emission vehicles, decrease in the cost of the electric vehicle battery system. Also, an increase in global awareness regarding climate change will fuel the India electric vehicles battery market in the upcoming timeframe. Battery electric vehicle (BEV) and plug-in hybrid electric vehicle (PHEV) which are categorical as electric vehicles battery have the potential to reduce the CO2 emissions of the traffic sector and the dependence on mineral oil. Higher efficiency of electric power trains and the possibility of using renewably generated electricity for transportation, also reduce the pollution in densely populated areas.
The battery-electric vehicle has a powerful electric motor and a well-dimensioned battery system. The vehicle is propelled only by the electric motor so that no combustion engine, fuel tank, or even the exhaust system is needed. The vehicle is charged either by recuperation or by the power grid. Moreover, these batteries powering the vehicle with electricity from the grid reduces fuel costs, cuts petroleum consumption, and reduces tailpipe emissions compared with conventional vehicles. Increasing prices for mineral oil, decreasing oil and gas resources and degrading environmental conditions are major factors for the demand of electric vehicles battery in upcoming periods.
According to BlueWeave Consulting‘s report, Titled-“Global Electric Vehicle Battery Market, by Battery Type (Lithium-ion Battery, LeadAcid Battery, Nickel Metal Hydride Battery, and Others), by Vehicle Technology(BEV, PHEV and HEV), by Vehicle Type (Passenger Car, Commercial Car and TwoWheeler), by Region (North America, Asia Pacific, Europe, Latin America, andMiddle East & Africa); Size and Forecast, 2014-2025”- Global Electric Vehicle Battery market is expected to grow with a CAGR over 19% during the forecast period 2018-2025, owing to increasing demand for environment friendly vehicles. Diseases caused by air and water pollution are epidemic among minorities. Environmental pollution cause more than three times death than malaria, tuberculosis, and AIDs, countries such as Indian and China records the maximum death caused by environmental pollution.
In addition, governments’ regulations, particularly pollution prone countries have initiated supportive policies and programs to produce and adopt electric vehicles, which is surging the demand for global electric vehicles battery market over the forecast span.
According to BlueWeave Consulting‘s report, Titled-“IndiaLithium-ion Battery Market, By Type (Lithium Cobalt Oxide, Lithium ManganeseOxide, Lithium Iron Phosphate and Others), By Components (Cathode, Anode,Electrolytic Solution, Others) By Application (Consumer Electronics, Industrialand Automotive), by Region; Size and Forecast, 2014-2025”- India Lithium-ion Battery market is expected to grow with a CAGR over 23% during the forecast period 2018-2025. Increasing pollution concerns, rising adoption of electric vehicles, increasing income-levels and surging demand for quality and uninterrupted power are some of the key factors driving the growth of Lithium-ion batteries market in India.
Further, rising usage
of smartphones and other consumer electronics products is resulting in an
increase in demand for higher energy density and faster-charging solutions.
Additionally, growing consumer electronics market is complimenting the growth
of Lithium-ion batteries market in India owing to its light-weight, high
energy, and power capacity features.