India's Battery Market Powers Up; EV Boom Sparks a $20 Billion Surge

Entrepreneur

5 days ago

With fuel prices climbing and air quality in urban centers continuing to deteriorate, both individuals and businesses are transitioning to electric alternatives
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India's battery market is surging on the back of an unprecedented electric vehicle (EV) revolution. Valued at $10.45 billion in 2025, it is projected to nearly double to $20.24 billion by 2031, growing at a compound annual growth rate (CAGR) of 11.48 per cent, according to a report by ResearchAndMarkets. The clearest indicator of this transformation is the record 2 million EVs sold across India in 2024.
With fuel prices climbing and air quality in urban centers continuing to deteriorate, both individuals and businesses are transitioning to electric alternatives. At the center of this growth is a fast-changing transportation landscape, spurred by aggressive government policy and shifting consumer priorities in this new wave of industrial innovation focused on electric mobility.
Supporting this, Pulkit Khurana, co-founder & CEO, Battery Smart, pointed out that "batteries have evolved from being mere components to becoming the very backbone of the EV ecosystem." He underscored the critical role of battery technology in scaling India's EV ambitions, emphasizing that "developing scalable and affordable battery solutions to support last-mile mobility vehicles" is essential for meeting the government's target of 30 per cent EV market share by 2030. The focus is not only on volume but on rethinking battery chemistry, lifecycle management, and domestic manufacturing.
Government programs like the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme and the Production Linked Incentive (PLI) for Advanced Chemistry Cells are driving the push. These initiatives offer subsidies, encourage local production, and support infrastructure such as battery-swapping stations and EV charging networks—laying the groundwork for a fully integrated electric ecosystem.
The rapid rise in electric vehicle (EV) adoption is set to fundamentally reshape India's battery market. EVs represent the largest and fastest-growing segment of lithium-ion battery demand, prompting a surge in investments across battery cell production, pack assembly, and raw material sourcing.
"Over the next few years, EV-driven demand will not only accelerate battery innovation but also drive infrastructure development in areas like charging, swapping, and recycling," said Pratik Kamdar, co-founder, Neuron Energy. With two-wheelers, three-wheelers, and fleet vehicles leading the EV shift, battery manufacturers are scaling operations and exploring cost-effective chemistries like lithium-ion with LFP (lithium iron phosphate), and in some cases, lead-acid batteries. For Kamdar, the focus on localizing the battery supply chain is intensifying—supported by policy incentives and strong private sector momentum.
The Battery Tech Push
The momentum is undeniable across the private sector, with firms tailoring technologies to Indian conditions. Dr. Aanchal Jain, CEO, PMI Electro Mobility, noted, "EV adoption is picking up across categories, from two-wheelers to commercial transport. This shift is creating a steady demand for batteries that are not just high-performing, but also cost-effective and durable." As competition intensifies, battery systems are evolving—integrating innovations in fast charging, thermal control, and energy density—while the supply chain is shifting from imports to local production.
For Mohal Lalbhai, co-founder & Group CEO, Matter Motor, localization is emerging as a strategic imperative. He observed that "most batteries depend on imported cells. But that's changing. India is building its own cell production base." He described a sweeping transformation across the value chain—from modular battery formats to battery-as-a-service models. New business approaches such as leasing and pay-per-use are making EVs more accessible, particularly in cost-sensitive markets. Read More
Beyond the commercial activity, the underlying data paints a layered picture. A report from IMARC shows that among different types of EVs—battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and hybrid electric vehicles (HEVs)—BEVs are leading the charge in India. Their appeal lies in zero emissions, fast charging, and suitability across vehicle types. PHEVs, while offering flexibility, occupy a smaller slice of the Indian market, as the national policy framework prioritizes full electrification. HEVs, mostly suited to city commuting and offering marginal emission reductions, are gaining limited traction.
This is echoed by Simple Energy's CEO & founder, Suhas Rajkumar, who said, "India's EV market is growing rapidly, with 2024 sales hitting 1.94 million units—a 27 per cent year-over-year rise." He noted that domestic manufacturing, backed by government initiatives, is gaining momentum and helping meet the surging demand for high-performance batteries. Products like Simple One Gen 1.5, which boasts an IDC-certified range of 248 kilometers, are pushing the envelope on consumer expectations, especially in the highly competitive two-wheeler segment.
Ultimately, the real transformation is structural. India's battery future hinges not just on assembling imported parts, but on end-to-end cell manufacturing and recycling innovations that enable a circular economy.