India Battery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The market is segmented by Technology (Lithium-ion Battery, Lead-acid Battery, and Others) and Application (SLI Batteries, Industrial Batteries (Motive, Stationary (Telecom, UPS, Energy Storage Systems (ESS), etc.), Portable (Consumer Electronics, etc.), Automotive Batteries (HEV, PHEV, and EV), and Other Applications)

Market Snapshot

India Battery Market Overview
Study Period: 2018-2026
Base Year: 2020
CAGR: >11 %
India Battery Market Key Players

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Market Overview

The battery market in India is expected to grow at a CAGR of more than 11% during the forecast period. The outbreak of the COVID-19 has had a significant impact on the country's economy which is expected to significantly hamper the growth of the battery market in the country.The India battery market is already making sustained gains and is expected to flourish in the global market over the forecast period with the rise in electric vehicle sales coupled with increasing solar PV installations in the country, which in turn, is likely to drive the market studied. In India, several government measures such as the promotion of fuel-saving initiatives and clean fuel-based automobile technologies are anticipated to propel the demand for batteries in the country. Factors such as the emergence of new and exciting markets, i.e., electric vehicle and battery energy storage systems, for different applications are expected to be the major drivers for the battery market in India. However, the absence of lithium-ion domestic manufacturing facilities is likely to act as a restrain to the market.

  • The automotive segment is expected to have a significant growth in the Indian battery market during the forecast period owing to the increasing adoption of electric vehicles in the country.
  • Plans for local manufacturing of lithium-ion batteries in India is expected to bring down the EV cost in due time and reduce the dependency and increments on import duties, which in turn, is likely to provide an opportunity in the li-ion battery market in the near future.
  • Supply and demand gap in the raw materials required to produce batteries in the country is expected to restraint the growth of the market during the forecast period.

Scope of the Report

The India battery market report includes:

Technology
Lithium-ion Battery
Lead-acid Battery
Others
Application
SLI Batteries
Industrial Batteries (Motive, Stationary (Telecom, UPS, Energy Storage Systems (ESS)), etc.)
Portable (Consumer Electronics, etc.)
Automotive Batteries (HEV, PHEV, and EV)
Other Applications

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Key Market Trends

The Automotive Segment to Witness Significant Growth

  • India became the fifth-largest automobile market in 2020 with sales amounting to 2.42 million units. It was the sixth-largest manufacturer of commercial vehicles in 2020.
  • The two-wheeler segment dominates the automotive market owing to a growing middle class and a young population. Organized companies sell branded batteries with warranties, while unorganized companies provide no warranty or after-sales, sell recycled batteries and price them at 30-35% discount to branded ones. India Automotive replacement battery market is leading the lead-acid battery market.
  • Li-ion batteries make up for the most expensive component of an electric vehicle, accounting for 40-50% of its cost. The high adaptability of EVs projected in India and the changing dynamics of the transportation sector in the country, are expected to rise the demand for lithium-ion batteries in the automotive market.
  • In January 2020, the Government of India under the FAME-II scheme approved a plan to set up 2,636 EV charging stations around the country, in a bid to push electric vehicle (EV) adoption in the country. These charging stations would be spread across 62 cities in 24 states and union territories with at least one EV charging spot available within a 4 km radius in these cities.
  • The availability of EV charging stations is expected to encourage EV manufacturers to launch new EV models, as they were hesitant to do so due to lack of charging infrastructure.​
  • The aforementioned factors are expected to help the automotive segment gain significant momentum in the country, which in turn is expected to hep the battery market to grow during the forecast period.
India Battery Market Key Trends

Increasing Demand for Electric Vehicles (EVs) to Drive the Market

  • Electric vehicles (EVs) are expected to play a central role in attaining sustainable development goals. In India, the adoption of EV is likely to grow significantly with the increasing demand for clean energy sources. The government has plans to achieve a target of 30% electric vehicle adoption by 2030 powered primarily by electrification of two-wheeler, three-wheeler, and commercial vehicles in India.
  • In India, where about more than 3 million fossil fuel-powered passenger vehicles sold annually, few automakers including Mahindra & Mahindra Ltd., Tata Motors Ltd., and Ashok Leyland Ltd. are making EVs domestically. Overseas companies such as Hyundai Motor Co. and Suzuki Motor Corp. are also entering the new segment as the government plans to have green vehicles comprise about a third of its fleet by 2030.
  • The market is likely to be dominated by electric three-wheelers as these vehicles are majorly used for passenger carriers. The market for supplying batteries to e-rickshaws, small privately-owned three-wheeler taxis, is expected to grow at a compounded rate of about 20% over the next five years.
  • India’s electric car stock has grown from 7 thousands of vehicles in 2017 to 12.74 thousands of vehicles in 2020, showing about 82% growth rate in the market.
  • Therefore, the increase in adoption of electric vehicles is expected to drive the battery market in India during the forecast period.
India Battery Market Growth by Region

Competitive Landscape

The India battery market is fragmented. Some of the major players in the market include Exide Industries Ltd, Luminous Power Technologies Pvt. Ltd., HBL Power Systems Ltd, TATA AutoComp GY Batteries Pvt. Ltd., and Okaya Power Pvt. Ltd.

Recent Developments

  • The outbreak of the COVID-19 lead to India's Gross Domestic Product (GDP) contract by 7.3% in FY 2020-21. This was mainly caused by the global economic slowdown combined with COVID-19 related lockdowns in the country. This is expected to significantly hamper the growth of the Indian battery market during the initial years of the forecast period.
  • In February 2020, National Institution for Transforming India (NITI) Aayog rolled out proposals to provide subsidies for investors setting up giga-scale lithium-ion manufacturing facilities in India. In between 2020-2030, NITI Aayog is likely to invite bids for establishing production lines of 50 GWh of annual output capacity.
  • In February 2021, Barrel Energy, a lithium-ion battery manufacturer based in the United States, signed a memorandum of understanding with Hyderabad-based Roshan Energy Technologies to develop and manufacture lithium-ion batteries in India and North America. Barrel Energy stated that the company would become a majority stakeholder in Roshan Technologies to expand its Indian and international markets. Roshan Energy is likely to provide its technical resources and expertise, while Barrel Energy expected to help in providing funds and international marketing abilities.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions

  2. 2. EXECUTIVE SUMMARY

  3. 3. RESEARCH METHODOLOGY

  4. 4. MARKET OVERVIEW

    1. 4.1 Introduction

    2. 4.2 Market Size and Demand Forecast in USD biliion, till 2026

    3. 4.3 Recent Trends and Developments

    4. 4.4 Government Policies and Regulations

    5. 4.5 Market Dynamics

      1. 4.5.1 Drivers

      2. 4.5.2 Restraints

    6. 4.6 Supply Chain Analysis

    7. 4.7 PESTLE Analysis

    8. 4.8 Assessment of the COVID-19 Impact on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 Technology

      1. 5.1.1 Lithium-ion Battery

      2. 5.1.2 Lead-acid Battery

      3. 5.1.3 Others

    2. 5.2 Application

      1. 5.2.1 SLI Batteries

      2. 5.2.2 Industrial Batteries (Motive, Stationary (Telecom, UPS, Energy Storage Systems (ESS)), etc.)

      3. 5.2.3 Portable (Consumer Electronics, etc.)

      4. 5.2.4 Automotive Batteries (HEV, PHEV, and EV)

      5. 5.2.5 Other Applications

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 Exide Industries Ltd

      2. 6.3.2 Luminous Power Technologies Pvt. Ltd.

      3. 6.3.3 HBL Power Systems Ltd

      4. 6.3.4 TATA AutoComp GY Batteries Pvt. Ltd.

      5. 6.3.5 Okaya Power Pvt. Ltd.

      6. 6.3.6 Amara Raja Batteries Ltd

      7. 6.3.7 Su-Kam Power Systems Ltd.

      8. 6.3.8 Base Corporation Ltd.

      9. 6.3.9 Southern Batteries Pvt Ltd.

      10. 6.3.10 Evolute Solutions Pvt. Ltd.

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The India Battery Market market is studied from 2018 - 2026.

The India Battery Market is growing at a CAGR of >11% over the next 5 years.

Exide Industries Ltd , Luminous Power Technologies Pvt. Ltd. , HBL Power Systems Ltd, TATA AutoComp GY Batteries Pvt. Ltd. , Okaya Power Pvt. Ltd. are the major companies operating in India Battery Market.

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