India

The report projects battery demand to increase from 19 GWh in 2025 to 362 GWh by 2032, driven by rising EV volumes and increasing battery pack sizes across vehicle segments.

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New Delhi: India’s electric vehicle (EV) market is expected to witness a 12-fold jump to 30.4 million annual unit sales by 2032 under the high-growth National EV (NEV) scenario, supported by stronger policy measures, localisation and charging infrastructure expansion, according to a report by the India Energy Storage Alliance (IESA), prepared by Customized Energy Solutions (CES).

According to ANI, the report estimates annual EV sales will increase from 2 million units in 2024 to 2.6 million units in 2025, marking a growth of around 26 per cent year-on-year.

EV penetration also continued to improve, with electric vehicles accounting for about 9.5 per cent of India’s total vehicle sales in 2025, compared with 8.1 per cent in 2024, highlighting the country’s steady shift towards electrified mobility.

Higher fuel prices, a widening range of electric SUVs and a strong pipeline of new launches are expected to further improve consumer adoption in the coming years, the report said.

Two- and three-wheelers dominate

Electric two-wheelers continued to lead the market in 2025, accounting for 60.1 per cent of total EV sales, while electric three-wheelers contributed 31.6 per cent. Together, the two segments represented more than 91 per cent of the nearly 2.5 million electric vehicles sold during the year.

Electric passenger vehicles expanded their share to 7.7 per cent, reflecting growing consumer acceptance of battery-powered cars. Electric buses accounted for 0.2 per cent of total EV sales, while trucks contributed 0.4 per cent, supported largely by government procurement programmes and fleet electrification initiatives.

Battery demand to rise sharply

The report projects battery demand to increase from 19 GWh in 2025 to 362 GWh by 2032, driven by rising EV volumes and increasing battery pack sizes across vehicle segments.

“In parallel, battery demand is expected to scale sharply, driven both by rising EV adoption and increasing average battery pack sizes,” the report noted.

Four-wheelers emerged as the largest consumers of batteries in 2025, accounting for 40 per cent of total battery demand, followed by three-wheelers at 27 per cent and two-wheelers at 23 per cent.

Although buses represented only 0.2 per cent of vehicle sales, they contributed nearly 7.8 per cent of battery demand because of significantly larger battery packs. Electric trucks accounted for 1.9 per cent of total battery demand as adoption gradually increased.

The report added that the divergence between the business-as-usual (BAU) and high-growth NEV scenarios after 2029 demonstrates that India’s electrification trajectory will depend on continued policy support, faster charging infrastructure deployment and domestic manufacturing capabilities.

Component market to cross ₹3 lakh crore

India’s EV component market, valued at ₹41,000 crore in 2025, is projected to grow to ₹3.02 lakh crore by 2032 under the business-as-usual scenario, representing a compound annual growth rate of around 38 per cent.

Battery packs currently account for the largest share of the market at 52 per cent, followed by motors (22 per cent), inverters (12 per cent), battery management systems (11 per cent) and DC-DC converters (3 per cent).

However, the report highlighted significant localisation challenges across the supply chain.

“India’s motor and controller localisation remains at 30-40 per cent, inverter supply chains are heavily import-dependent, and BMS hardware localisation lags well behind software capability,” it noted.

It added that the incremental ₹2.61 lakh crore market opportunity expected between 2025 and 2032 will favour companies investing early in domestic manufacturing of power electronics, battery systems and drivetrain integration technologies.

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