India Electric Vehicle Battery Market Gaining Traction: Projected to Grow at a CAGR of 28.5% during 2022-2028
Published | 03 February 2022
India electric vehicle battery market is growing at a high CAGR because of the increasing penetration of electric vehicles on Indian roads due to volatile prices of non-renewable fuels. Moreover, growing concerns over carbon emissions and their impact on the environment are also propelling market growth….
A recent study conducted by the strategic consulting and market research firm BlueWeave Consulting, revealed that India electric vehicle battery market is thriving and estimated to grow at a CAGR of 28.5% during the forecast period of 2022-2028. A major driver of India's electric vehicle market is the growing penetration of electric vehicles on Indian roads due to volatile prices of nonrenewable fuels, such as petrol and diesel. Additionally, the growing concern towards carbon emission and its impact on the environment is also influencing the demand for electric vehicles in the market, which is anticipated to propel the electric vehicle battery market during the forecast period. With the surging demand for EVs, the electric vehicle manufacturers are also expanding their production capacity, which will further fuel the demand for EV batteries in the Indian market. However, the huge demand and supply gap for electric vehicle batteries may act as a huge restraining factor for India electric vehicle market.
Development of Public Transport is Anticipated to Drive the India Electric Vehicle Battery Market
The governments of various states are investing significantly in developing public transport for infrastructural development and are launching electric buses for these purposes. For instance, Karnataka has recently delivered 90 electric buses to Bangalore Metropolitan Transport Corporation (BMTC) for its first electric bus project. Additionally, Uttar Pradesh plans to launch its first set of electric buses in Ghaziabad by 2022. Government investments such as these are projected to increase the penetration of EVs on the Indian market, causing demand for battery packs for electric vehicles to grow.
High Concentration of EV Manufacturers is Estimated to Propel the Market Growth during The Forecast Period
In India, there is a high concentration of electric vehicle manufacturers, significantly contributing to the demand for electric vehicle batteries. Mahindra Electric, Tata Motors, Ashok Leyland, Hero Electric, etc. are leading EV manufacturers in India. These manufacturers investing huge amounts into expanding their production capacities to meet the growing demand for electric vehicles. For instance, Bajaj recently announced the investment of Rs. 300 crores (USD 40 million) into a new manufacturing unit in Pune. Such investments are anticipated to propel the demand for electric vehicle batteries in the upcoming years.
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India Electric Vehicle Battery Market - By Vehicle Type
Based on vehicle types, India electric vehicle battery market is segmented into passenger cars, auto-rickshaws, vans/light trucks, medium & heavy trucks, buses, off-highway vehicles. Among these, the electric auto-rickshaws segment accounts for the largest market share. E-rickshaws have opened up new business opportunities for Indian rickshaw drivers since they require a small investment to make a living. India had more than 15 lakh e-rickshaws in 2021, according to a report by the Down To Earth Organization. E-Rickshaws are emerging as an effective mode of public transportation, which is expected to propel market growth in the forecast period. However, the passenger cars segment is projected to witness the highest growth rate during the forecast period owing to the expanding production of such vehicle types.
India Electric Vehicle Battery Market - Regional Insights
Geographically, the India electric vehicle battery market is segmented into North India, South India, East India, and West India. Among these regions, North India dominated the India electric vehicle battery market in 2021. According to the data by Road Transport and Highways Minister Nitin Gadkari, there are around 870,141 electric vehicles registered in India, out of which 255,700 are in Uttar Pradesh, followed by Delhi that has 125,347 electric vehicles. Due to this, the demand for electric vehicles is very prominent in North India.
Impact of COVID-19 on India Electric Vehicle Battery Market
The unprecedented COVID-19 outbreak tremendously impacted the growth of India electric vehicle battery market. The manufacturing and production activities for electric vehicles and their batteries were halted due to the lockdown and shortage of labor. Furthermore, restrictions on the mobility and distribution channels also directly influenced the demand for electric vehicle batteries for replacement purposes. However, the pandemic is expected to have a positive impact on the market due to the increasing awareness about sustainability and the environment, which is projected to boost the demand for electric vehicles.
India Electric Vehicle Battery Market- Competitive Landscape
The leading players in the India electric vehicle battery market are Amara Raja Batteries Limited, Toshiba India Pvt. Ltd., Tata AutoComp GY Batteries Private Limited, Exide Industries Ltd, Samsung SDI Company Limited, Hero Electric Vehicles Pvt. Ltd., Panasonic India Private Limited, Okaya Power Pvt. Ltd., Exicom Tele-Systems Limited, Maruti Suzuki, and other prominent players.
The market is highly consolidated and competitive with the presence of leading electric vehicle battery manufacturers. The companies launch a wide range of products to cater to the needs of various vehicle types to diversify their consumer base. In order to gain a competitive edge, they also invest significantly in research and development activities to improve the efficiency of their batteries and incorporate technological advancements into their products. Furthermore, the adoption of competitive strategies such as partnerships, mergers, acquisitions, collaborations, etc., is also prominent in this market.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the India electric vehicle battery market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of the India electric vehicle battery market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.
BlueWeave Consulting (BWC) provides comprehensive Market Intelligence (MI) Solutions to businesses regarding various products and services online and offline. We offer all-inclusive market research reports by analyzing both qualitative and quantitative data to boost up the performance of your business solutions. BWC has built its reputation from the scratch by delivering quality inputs and nourishing long-lasting relationships with its clients. We are one of the promising digital MI solutions companies providing agile assistance to make your business endeavors successful.
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