The Indian EV battery market will grow from $16.77 billion in 2023 to $27.70 billion by 2028, with a compound annual growth rate (CAGR) of 10.56 per cent during the period spanning 2023 to 2028, according to GameChanger Law Advisors and Speciale Invest.
Moreover, the report points to huge potential for India in manufacturing EV battery packs as the country is heavily dependent on importing 60–65 per cent of the total component requirement for battery packs.
The Indian EV market was valued at $3.21 billion in 2022 and is expected to grow to $113.99 billion by 2029 at a compound annual growth rate of 66.52 per cent.
In 2022, 25 per cent of EVs sold in India were purchased by fleet operators, including taxis. In recent years, EV sales in India have significantly increased because they are a cleaner and more efficient alternative to gasoline-powered vehicles. With the growth of sales of EVs in India, the government has set a target to achieve 30 per cent electrification of India’s vehicle fleet by 2030.
The Economic Survey of 2023 predicts that India’s domestic EV market will undergo substantial growth, with a projected 49 per cent CAGR between 2022 and 2030, leading to an annual sales figure of 10 million EV units by 2030.
While the majority of EV Original Equipment Manufacturers (OEMs) have established in-house battery pack assembly facilities, utilising either imported lithium-ion cells or purchased battery packs, venture capital-funded start-ups such as Ather, Ola Electric, Cosbike, and Pure EV continue to supply their battery packs to the majority of two- and three-wheeler OEMs, representing current market trends.
“We have examined the current legal landscape for EV battery packs in India and provided a comparative reference point for Indian policymakers by drawing their attention to regulations in California, the European Union, and the UK,” said Amrut Joshi, Founder, GameChanger Law Advisors (GLA). GLA regularly represents several clients in the electric mobility industry and investors who have invested in various EV startups.
“As we embark on this journey with GameChanger Law Advisors, ‘Charging Ahead’ aims to empower founders, investors, and policymakers alike with the knowledge and guidance needed to accelerate India’s transition towards a sustainable, electric future,” says Vishesh Rajaram, Managing Partner, Speciale Invest.