As per MRFR analysis, the India Electric Vehicles Battery Market Size was estimated at 3.35 (USD Billion) in 2024.The India Electric Vehicles Battery Market Industry is expected to grow from 3.91(USD Billion) in 2025 to 21.75 (USD Billion) by 2035. The India Electric Vehicles Battery Market CAGR (growth rate) is expected to be around 16.877% during the forecast period (2025 - 2035).
Key India Electric Vehicles Battery Market Trends Highlighted
In India, the electric vehicles battery market is experiencing significant growth driven by various key market drivers. The government has made substantial efforts to promote electric mobility through initiatives like the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, which offers incentives for electric vehicle adoption and battery production. As air quality concerns escalate, particularly in urban areas, the push for cleaner transportation options has intensified, further catalyzing the demand for batteries.Â
Additionally, advancements in battery technology, including lithium-ion and solid-state batteries, are enhancing efficiency and reducing costs, making electric vehicles more attractive to consumers.Opportunities in the Indian electric vehicles battery market abound. There is a strong demand for local manufacturing capabilities. The government's "Make in India" initiative supports the establishment of domestic battery production facilities, reducing reliance on imports and fostering local innovation.Â
The transition towards renewable energy sources for charging infrastructure allows for a more sustainable approach to electric vehicle adoption. The vast geographic diversity in India enables the exploration of different battery types suitable for various terrains, promoting regional growth. Trends in recent times show an increased focus on battery recycling and sustainability.Companies are beginning to invest in technologies that not only improve battery life but also allow for the recycling of materials once the batteries reach the end of their lifecycle.Â
Moreover, state governments are introducing their own policies to promote electric vehicles and battery reuse. This commitment from both the central and state governments indicates a long-term vision for an integrated electric vehicle ecosystem in India, attracting more players and innovations in the battery sector.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
India Electric Vehicles Battery Market Drivers
Government Initiatives for Electric Mobility
The Indian government has been actively promoting electric mobility through various initiatives such as the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) scheme. This initiative aims to encourage electric vehicle adoption by offering financial incentives to manufacturers and consumers.Â
As part of its National Electric Mobility Mission Plan (NEMMP) 2020, the government has projected to achieve significant reductions in vehicular emissions and aims for sales of 6-7 million electric and hybrid vehicles by 2020.Furthermore, the government is aiming to promote the development of a comprehensive charging network as specified in its policy framework from 2021 to 2024. Thus, the support of the government is likely to drive the India Electric Vehicles Battery Market Industry for many years.
Increasing Environmental Awareness
As concern over air pollution and climate change rises, there is a marked shift towards greener alternatives in transportation. Reports suggest that urban air pollution in India is responsible for around 1.2 million premature deaths annually, underscoring the pressing need for electric vehicles.Â
As India seeks to meet its international commitments for reducing emissions under the Paris Agreement, the demand for electric vehiclesand consequently for electric vehicle batterieswill see a significant increase.Organizations such as the Centre for Science and Environment (CSE) actively advocate for such transitions, thereby influencing both the market and consumer behavior towards electric vehicles in the India Electric Vehicles Battery Market Industry.
Technological Advancements in Battery Technology
Rapid advancements in battery technologies, including lithium-ion batteries, are contributing to the growth of the India Electric Vehicles Battery Market Industry. Companies like Amara Raja Batteries and Exide Industries are investing in Research and Development to improve battery performance, lifespan, and efficiency.Â
For instance, developments in solid-state battery technology have the potential to increase energy density significantly, with estimates suggesting improvements of over 30% in comparison to conventional lithium-ion batteries.This enhanced capability will cater to the increasing consumer needs for longer-range and faster-charging electric vehicles, making them more appealing and accessible in the Indian market.
Rising Fuel Prices and Operational Cost Savings
The fluctuations in fossil fuel prices have recently shown a consistent upward trend, significantly impacting the operational costs associated with traditional internal combustion engine vehicles. With petrol and diesel prices rising, electric vehicles become a more cost-effective option over time.Â
For instance, the cost of electricity for charging electric vehicles is considerably lower than that of fossil fuels, allowing consumers to save on operational expenditures.According to the Ministry of Power, the average cost of electricity for charging electric vehicles in India is approximately INR 7-8 per kWh, which is much lower than the equivalent cost of petrol. This financial incentive is expected to drive demand in the India Electric Vehicles Battery Market Industry.
India Electric Vehicles Battery Market Segment Insights
Electric Vehicles Battery Market Battery Type Insights
The India Electric Vehicles Battery Market, one of the most dynamic sectors in the country, emphasizes the significance of Battery Type in the overarching industry. These batteries are essential for the operation of electric vehicles, contributing to the efficiency, performance, and durability of EVs. Lithium-Ion batteries have gained substantial traction due to their lightweight and high energy density characteristics, which enable longer driving ranges and faster charging times, thereby making them a preferred choice among manufacturers and consumers alike.Solid-State batteries, emerging as a promising alternative, stand out for their enhanced safety and potential for higher performance, although they are still in the developmental phase for widespread adoption.Â
Nickel-Metal Hydride batteries, while traditionally used in hybrid vehicles, continue to hold relevance due to their reliability and cost-effectiveness in specific applications. Lead-Acid batteries, despite being older technology, still play a role, especially in lower-end electric vehicles and two-wheelers, due to their large-scale accessibility and ease of recycling.As the Indian government intensifies its commitment toward electric mobility and sustainable energy sources, the focus on advancing these battery technologies is paramount.Â
Factors such as investment opportunities, technological innovations, and a growing infrastructure for electric vehicles are driving the expansion of these battery types in the market. The interplay of these battery technologies presents multiple pathways for growth and development within the India Electric Vehicles Battery Market, aligning with the nation's larger goals of reducing carbon emissions and fostering cleaner urban environments.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Electric Vehicles Battery Market Electric Vehicle Type Insights
The India Electric Vehicles Battery Market has been significantly shaped by the Electric Vehicle Type segment, which comprises various categories such as Battery Electric Vehicles, Plug-In Hybrid Electric Vehicles, and Hybrid Electric Vehicles. Battery Electric Vehicles are gaining traction due to their zero-emission capabilities, contributing to India’s push towards sustainable transportation as the government promotes initiatives like the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme.
Plug-In Hybrid Electric Vehicles are also important, providing flexibility for consumers who may not have immediate access to charging infrastructure, thereby easing the transition to fully electric options.Similarly, Hybrid Electric Vehicles serve a crucial role in the market by offering a blend of traditional and electric power, appealing to a broader audience that is still reliant on conventional fuels. As the market evolves, emphasis on infrastructure development, advancements in battery technology, and declining costs of electric vehicles will likely enhance the acceptance of these vehicle types, potentially leading to transformed consumer behavior and substantial growth within the India Electric Vehicles Battery Market. The overall demand for electric vehicles is motivated by a combination of technological innovation, government policy support, and increasing environmental awareness among consumers.
Electric Vehicles Battery Market Application Insights
The Application segment of the India Electric Vehicles Battery Market plays a crucial role in driving the growth of the industry, reflecting significant advancements in battery technology and increasing adoption of electric mobility solutions. The automotive segment is a major contributor, fueled by rising environmental awareness and government initiatives promoting electric vehicles. The public transport sector also shows promising growth, as cities are transitioning towards electric buses to reduce pollution and enhance urban mobility.
 Additionally, the two-wheeler category is gaining traction, appealing to the younger demographic seeking affordable and eco-friendly transportation options.Lastly, the energy storage system segment presents opportunities for grid stability and renewable energy integration, showcasing India's commitment to sustainable energy solutions. Overall, each category within the Application segment addresses specific needs in the market while collectively contributing to a cleaner and more sustainable transportation ecosystem in India. Furthermore, as the government of India pushes towards electric mobility goals, advancements in battery technology are expected to continuously reshape the landscape of the India Electric Vehicles Battery Market.
Electric Vehicles Battery Market Capacity Insights
The Capacity segment of the India Electric Vehicles Battery Market is a critical aspect driving the industry's growth and evolution. As electric vehicle adoption continues to rise in India, understanding the diverse capacities of batteries is vital for meeting consumer needs. The range extends from smaller batteries below 20 kWh, which are often used in two-wheelers and compact electric vehicles, appealing to urban commuters due to their affordability and efficiency. The 20 kWh to 50 kWh segment caters predominantly to mid-range electric cars, providing a balance between cost and distance coverage.
As we progress to the 51 kWh to 100 kWh range, this category becomes increasingly important for long-distance travel and larger vehicles, reflecting a shift in consumer demand for enhanced performance and range. Additionally, batteries above 100 kWh are essential for electric buses and commercial vehicles, supporting India’s ambition to reduce emissions and improve urban mobility. The market trends indicate a growing focus on battery technology improvements and innovations driven by government initiatives aiming to boost electric vehicle uptake.As a result, investment in research and development in this segment is expected to produce more efficient, durable, and cost-effective solutions, ultimately shaping the future of mobility in India. The diverse capacity offerings of the India Electric Vehicles Battery Market underline the importance of adaptability in catering to various consumer preferences and needs, ensuring sustained growth and market relevance in the coming years.
India Electric Vehicles Battery Market Key Players and Competitive Insights
The India Electric Vehicles Battery Market has witnessed significant development in recent years, driven by increasing environmental concerns and government initiatives promoting electric mobility. The competitive landscape is shaped by various factors including technological advancements, market demand for sustainable energy solutions, and robust supply chain dynamics. Key players are continually innovating to enhance battery performance and reduce costs, thus making electric vehicles more accessible to consumers.Â
With policies favoring electric vehicles and the growth of charging infrastructure, the market is poised for considerable expansion, attracting both established companies and new entrants aiming to secure their share in this rapidly developing sector.In the context of the India Electric Vehicles Battery Market, Bosch stands out as a formidable player characterized by its extensive experience and technological prowess. The company has a strong presence in the country, focusing on research and development to enhance battery efficiency and lifespan.Â
Bosch's strengths lie in its ability to leverage advanced engineering expertise to create high-performance battery solutions that cater to various segments of the electric vehicle landscape, including two-wheelers, three-wheelers, and four-wheelers. By investing in local manufacturing and building strategic partnerships with automotive manufacturers, Bosch aims to solidify its foothold and address the growing demand for electric mobility in India, thus contributing significantly to the industry's evolution.
Ola Electric has emerged as a key contender in the India Electric Vehicles Battery Market, primarily recognized for its innovative approach to electric mobility. The company is focused on producing electric scooters equipped with high-performance lithium-ion batteries, positioning itself as a leading player in the two-wheeler segment. Ola Electric places significant emphasis on research and development, making strides in battery technology to enhance the range and efficiency of its products. Leveraging its strong brand presence and robust manufacturing capabilities, Ola Electric has effectively tapped into the burgeoning market for electric vehicles in India.Â
Its ambitious plans, which include a commitment to sustainable energy and extensive manufacturing facilities, underscore its competitive edge. The company has also made strategic moves through partnerships and collaborations within the industry to further strengthen its market position and foster innovation, making it a prominent name in the evolving landscape of electric vehicle batteries in India.
Key Companies in the India Electric Vehicles Battery Market Include:
India Electric Vehicles Battery Market Industry Developments
In recent months, the India Electric Vehicles Battery Market has witnessed significant developments, particularly with major players making strides in technology and production. Ola Electric has ramped up its battery manufacturing efforts, aiming to produce advanced battery packs domestically to support its growing electric scooter sales.Â
Meanwhile, Samsung SDI has announced plans to increase its investment in Indian battery manufacturing facilities, focusing on research and development to enhance performance and sustainability. In terms of mergers and acquisitions, BYD has entered into a partnership with Tata Chemicals for battery technology, reflecting the increasing collaboration among companies to boost local production capabilities as of October 2023.Â
Amara Raja Batteries has also been expanding its capacity by announcing a joint venture with a foreign enterprise to develop lithium-ion batteries. Overall, the market's growth is driven by a surge in electric vehicle adoption, with the Indian government actively promoting initiatives to increase EV infrastructure and battery technology, contributing to a positive outlook for companies such as Bosch, Luminous Power Technologies, Greaves Cotton, and LG Energy Solution, among others. The total market valuation for electric vehicle batteries in India is expected to rise significantly, supporting economic and environmental goals.
India Electric Vehicles Battery Market Segmentation Insights
Electric Vehicles Battery Market Battery Type Outlook
Electric Vehicles Battery Market Electric Vehicle Type Outlook
Electric Vehicles Battery Market Application Outlook
Electric Vehicles Battery Market Capacity Outlook
Below 20 kWh
20 kWh to 50 kWh
51 kWh to 100 kWh
Above 100 kWh
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 3.35(USD Billion) |
| MARKET SIZE 2024 | 3.91(USD Billion) |
| MARKET SIZE 2035 | 21.75(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 16.877% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | Bosch, Ola Electric, Samsung SDI, BYD, A123 Systems, Luminous Power Technologies, Hinduja Group, Greaves Cotton, Panasonic, Amara Raja Batteries, LG Energy Solution, Mahindra Electric, Exide Industries, Ather Energy, Tata Chemicals |
| SEGMENTS COVERED | Battery Type, Electric Vehicle Type, Application, Capacity |
| KEY MARKET OPPORTUNITIES | Government incentives for EV adoption, Growing charging infrastructure expansion, Rising demand for sustainable energy, Advancements in battery technology, Increased investments in R&D |
| KEY MARKET DYNAMICS | Rising demand for EVs, Government incentives and policies, Growing charging infrastructure, Technological advancements in batteries, Battery recycling and sustainability |
| COUNTRIES COVERED | India |
Frequently Asked Questions (FAQ) :
The India Electric Vehicles Battery Market is expected to be valued at 3.91 USD Billion in 2024.
By 2035, the market is projected to grow to 21.75 USD Billion.
The market is expected to experience a CAGR of 16.877% from 2025 to 2035.
The Lithium-Ion battery type dominates the market, valued at 2.4 USD Billion in 2024.
The market size for Lithium-Ion batteries is projected to reach 12.2 USD Billion by 2035.
Some of the major players include Bosch, Ola Electric, Samsung SDI, and BYD.
Solid-State batteries are expected to be valued at 4.0 USD Billion by 2035.
The market for Nickel-Metal Hydride batteries is forecasted to grow to 2.5 USD Billion by 2035.
The market faces challenges related to supply chain disruptions and increasing raw material costs.
There are opportunities in technological advancements and increasing electric vehicle adoption driving market growth.
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