India Battery Market Outlook to 2028

India Battery Market Overview

The India battery market was valued at USD 5.2 billion in 2023, driven by increasing demand from the automotive, industrial, and consumer electronics sectors. The primary drivers of this growth include the rapid adoption of electric vehicles (EVs), increased industrialization, and government initiatives promoting renewable energy and energy storage solutions.

The India battery market is fragmented with several key players including Exide Industries, Amara Raja Batteries, Luminous Power Technologies, HBL Power Systems, and Okaya Power.

In 2023, Tata Chemicals announced the establishment of a new lithium-ion battery manufacturing plant in Gujarat, with an investment of USD 100 million. This facility aims to produce batteries for electric vehicles and energy storage systems, addressing the growing demand for advanced battery technologies in India.

India Battery Market Analysis

The Indian government's push for electric mobility, including incentives under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, has significantly increased the demand for batteries. By 2024, the sale of electric vehicles in India is expected to reach 1.5 million units, according to the Society of Indian Automobile Manufacturers.

The expansion of the battery market is contributing to economic growth by creating new job opportunities in manufacturing, research and development, and maintenance services. The Confederation of Indian Industry (CII) estimates that the battery industry could generate over 100,000 jobs by 2028.

The western region of India, particularly Maharashtra and Gujarat, dominates the battery market. These states are major industrial hubs with a high concentration of manufacturing units, driving demand for industrial batteries. Maharashtra alone accounts for over 30% of the country's industrial output, according to the Ministry of Commerce and Industry.

India Battery Market Segmentations

By Battery Type: India's battery market is segmented by battery type is divided into lithium-ion, lead-acid, nickel-metal hydride and others.In 2023, Lithium-ion batteries are dominant due to their superior performance characteristics, such as high energy density, longer lifecycle, and rapid adoption in electric vehicles (EVs) and renewable energy storage. The technological advancements and declining costs of lithium-ion batteries have further cemented their dominance in the market.

By Application: India battery market is segmented by application is divided into automotive, industrial, consumer electronics and renewable energy storage. The automotive sector is the dominant application segment in India Battery market, driven by the rapid adoption of electric vehicles (EVs). Government policies promoting EVs, along with increasing environmental concerns, are pushing consumers and manufacturers towards electric mobility.

By Region: India battery market is segmented by region is divided into north, south, east and west. North India is the dominant region due to its high level of industrial activity and rapid urbanization. The presence of major automotive and electronics manufacturers in this region, coupled with robust infrastructure development, drives significant demand for various types of batteries.

India Battery Market Competitive Landscape

Company

Establishment Year

Headquarters

Exide Industries Ltd.

1947

Kolkata

Amara Raja Batteries Ltd.

1985

Tirupati

Luminous Power Technologies

1988

Gurugram

HBL Power Systems Ltd.

1977

Hyderabad

Luminous Power Technologies Hybrid Inverter System (2023): Luminous Power Technologies introduced a hybrid inverter system designed for solar energy storage in 2023. This innovative product addresses the growing demand for renewable energy solutions in residential and commercial sectors.

Amara Raja Batteries High-Energy Lithium-Ion Battery (2023): Amara Raja Batteries announced the development of a new high-energy-density lithium-ion battery for electric vehicles in 2023. This innovative battery technology aims to improve the range and efficiency of EVs.

HBL Power Systems Ltd.: HBL Power Systems developed a new line of batteries for railways in 2023, designed to meet the stringent safety and performance requirements of the transportation sector.

Tata Chemicals: Tata Chemicals' new lithium-ion battery manufacturing plant in Gujarat, announced in 2023, marks a significant step towards establishing a robust domestic supply chain for advanced batteries.

India Battery Market Industry Analysis

India Battery Market Growth Drivers

Government Incentives for Electric Vehicles: The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, launched in 2015, provides subsidies and incentives to manufacturers and buyers of EVs. As of 2024, the government has extended the scheme with an allocation of INR 10,000 crore, aiming to support the sale of 1 million electric two-wheelers, 500,000 electric three-wheelers, and 55,000 electric cars.

Renewable Energy Integration: India's ambitious renewable energy targets are driving the demand for energy storage solutions. The Ministry of New and Renewable Energy (MNRE) aims to achieve 175 GW of renewable energy capacity by 2024, with a significant focus on solar and wind power. Efficient energy storage systems are crucial for managing the intermittent supply of renewable energy and ensuring grid stability.

Technological Advancements in Battery Storage: Advancements in battery technologies are enhancing the efficiency and cost-effectiveness of energy storage solutions. Innovations such as solid-state batteries, improved battery chemistries, and advanced manufacturing techniques are driving the development of high-performance batteries. Research and development efforts by leading companies and academic institutions are focused on increasing energy density, reducing charging times, and extending battery life.

India Battery Market Challenges

High Initial Costs and Investment Requirements: The high initial costs and investment requirements for advanced battery technologies pose a significant challenge. While the cost of lithium-ion batteries has been decreasing, it remains relatively high compared to traditional lead-acid batteries. The capital-intensive nature of battery manufacturing and the need for specialized raw materials further contribute to the overall cost.

Supply Chain Constraints and Raw Material Availability: The availability of raw materials, such as lithium, cobalt, and nickel, is critical for battery manufacturing. Supply chain constraints and geopolitical factors can impact the availability and cost of these raw materials. The global demand for lithium-ion batteries, driven by the electric vehicle and renewable energy sectors, has led to increased competition for resources.

Environmental and Recycling Concerns: The environmental impact of battery production and disposal is a growing concern. The extraction and processing of raw materials can have significant environmental consequences, including habitat destruction and water pollution. Additionally, the disposal of used batteries poses challenges due to the presence of hazardous materials. Effective recycling and disposal mechanisms are crucial to mitigate the environmental impact of batteries.

India Battery Market Government Initiatives

National Electric Mobility Mission Plan (NEMMP) 2020: The National Electric Mobility Mission Plan (NEMMP) 2020 aims to promote the adoption of electric vehicles in India. As part of this initiative, the government allocated INR 10,000 crore under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme.

National Solar Mission (2010): Launched in 2010, the National Solar Mission aims to achieve 100 GW of solar power capacity by 2024. This ambitious target drives the demand for energy storage solutions to manage the intermittent supply of solar power and ensure grid stability. By promoting solar energy, the National Solar Mission contributes to the growth of the battery market in India.

Make in India Initiative (2014): The Make in India initiative, launched in 2014, aims to promote domestic manufacturing and reduce dependence on imports. The initiative includes policy support, incentives, and infrastructure development to attract investments in various sectors, including battery manufacturing.

India Battery Market Future Outlook

The Indian battery market is expected to continue its rapid growth, driven by increasing demand for electric vehicles, renewable energy integration, and advancements in battery technologies. Government initiatives and policy support will play a crucial role in sustaining this growth, creating a conducive environment for investments and innovation.

Future Market Trends

Advanced Battery Technologies: Advancements in battery technologies, such as solid-state batteries and improved chemistries, will enhance the performance and cost-effectiveness of energy storage solutions. These innovations are expected to drive the adoption of batteries across various applications.

Increasing Adoption of Electric Vehicles: The adoption of electric vehicles is expected to accelerate, driven by government incentives, policy support, and advancements in battery technologies. The growing focus on reducing carbon emissions and promoting sustainable transportation will further boost the demand for advanced battery solutions.

Growth of Renewable Energy Storage: The integration of renewable energy sources, such as solar and wind, into the national grid will drive the demand for energy storage solutions. Efficient battery storage systems are crucial for managing the intermittent supply of renewable energy and ensuring grid stability.
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