Report Overview

India Electric Vehicle (EV) Component Market - Industry Trends & Forecast Report, 2029

India electric vehicle (EV) component market size was estimated at USD 4.3 billion in 2022. During the forecast period between 2023 and 2029, the size of India electric vehicle (EV) component market is projected to grow at a CAGR of 18.49% reaching a value of USD 13.64 billion by 2029. Major growth drivers for the India electric vehicle (EV) component market include increasing consumer demand for environmentally cleaner mobility. The surge in consumer demand for cleaner and more sustainable mobility solutions is reshaping the automotive landscape while simultaneously propelling the electric vehicle (EV) component market towards a promising future. Within this evolving landscape, two-wheelers and passenger vehicles stand out as leaders in the transition to electric mobility, with projections of substantial market penetration reaching 19% and 7%, respectively, in the next five fiscal years. The Government of India’s significant role in nurturing the electric vehicle (EV) component market through initiatives like 'Make in India,' Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (EVs) in India (FAME India), and Production-Linked Incentive (PLI) schemes has laid the foundation for remarkable growth in EV component production, supporting the broader goal of achieving 30% electrification of total mobility by 2030. The government's commitment is evident through the allocation of INR 10,000 crore in incentives under Phase II of FAME and approximately INR 26,000 crore for local sourcing and manufacturing of EV components. India's commitment to reducing carbon emissions and combating climate change provides a conducive environment for component manufacturing, reinforcing the industry's growth trajectory. Simultaneously, India's efforts to expand charging infrastructure and promote renewable energy sources align seamlessly with the evolving needs of a thriving electric vehicle (EV) ecosystem, as demonstrated by the establishment of a nationwide charging station network and the focus on renewable energy generation, particularly through solar and wind power, underscoring India's dedication to sustainability and cleaner energy sources.

India Electric Vehicle (EV) Component Market – Overview

The India electric vehicle (EV) component market refers to the sector within the Indian automotive industry that encompasses the production, distribution, and supply of various components specifically designed for electric vehicles (EVs). These components include but are not limited to batteries, drivetrains, electronics, charging infrastructure, and other essential elements that constitute the core operational and functional aspects of EVs. The market is characterized by the growing demand for EV components, driven by factors such as consumer preferences for cleaner and more environmentally responsible mobility, government initiatives to support EV adoption, and the commitment to reducing carbon emissions. As India accelerates its transition towards electric mobility, the electric vehicle (EV) component market plays a pivotal role in providing the essential building blocks for the country's EV ecosystem, contributing to the broader goal of sustainable and cleaner transportation.

India Electric Vehicle (EV) Component Market

Growth Drivers

Growing Adoption of Electric Vehicle (EV)s

The growing adoption of EVs in India is expected to transform the country's automotive landscape. With expectations of electric vehicle (EV) sales reaching approximately 4 billion by 2025 and 8 billion by 2030, this burgeoning market presents a significant opportunity for EV component manufacturers, potentially amounting to USD 4 billion by 2025. Bengaluru has emerged as a frontrunner in this swift EV adoption, witnessing a substantial increase in electric vehicle (EV) registrations, notably after the COVID-19 pandemic. Furthermore, the expansion of EV charging infrastructure across major cities and the focus on cells, battery packs, fast charging, and battery swapping technologies indicate India's strong commitment to the electric vehicle (EV) sector.

Restraints

Infrastructure Challenges

Infrastructure challenges pose significant constraints to the growth of the India electric vehicle (EV) Component Market. The lack of adequate charging infrastructure and the prevalence of range anxiety deter potential electric vehicle (EVs) buyers. Inadequate charging stations across the country hinder EV adoption, making long-distance travel inconvenient. Moreover, the limited availability of efficient charging solutions discourages potential consumers. Addressing these infrastructure challenges is crucial for the Indian EV component market to reach its full growth potential.

Impact of COVID-19 on India Electric Vehicle (EV) Component Market

COVID-19 pandemic adversely affected the India electric vehicle (EV) component market. The nationwide lockdowns and disruptions in supply chains initially hampered production and caused delays. Consumer demand for EVs declined as economic uncertainties grew. However, the pandemic also highlighted the importance of cleaner and sustainable mobility, leading to increased interest in EVs. To stimulate the industry, the Indian government introduced various incentives and initiatives. While there were short-term setbacks, the long-term outlook for the EV component market remains positive as the nation focuses on electric mobility and recovery from the pandemic's effects.

India Electric Vehicle (EV) Component Market

Segmental Coverage

India Electric Vehicle (EV) Component Market – By Vehicle Type

By vehicle type, the India electric vehicle (EV) component market is divided into Two-Wheelers, Three-Wheelers, Passenger Cars, and Commercial Vehicles segments. The three-wheelers segment holds the highest share in the India electric vehicle (EV) component market by vehicle type. It is primarily driven by the extensive adoption of electric three-wheelers in urban and semi-urban areas. The rise of electric rickshaws and cargo carriers as sustainable transportation solutions, along with government incentives and supportive policies, has significantly boosted the demand for electric three-wheelers. Their affordability, efficiency, and eco-friendliness make them a preferred choice for last-mile connectivity, contributing to the segment's robust growth and leading position in the Indian electric vehicle (EV) component market. The three-wheeler segment includes e-rickshaw, e-auto, and retrofitted rickshaw. The e-rickshaw subsegment is expected to witness the fastest growth rate during the forecast period. It can be attributed to the eco-friendly and cost-effective nature, making it a preferred choice for urban transportation, especially in densely populated areas. Government incentives further boost its dominance. Notably, Tripura is expected to experience the most rapid growth in the electric vehicle (EV) component market for three-wheelers due to the increasing number of e-rickshaws in operation, resulting in heightened demand for components from both OEMs and aftermarket companies.

India Electric Vehicle (EV) Component Market – By Component

Based on portability, the India electric vehicle (EV) component market is divided into Battery Pack, Motor, Controller, Electric Vehicle (EV) Supply Equipment, DC–DC Converter, High-Voltage Cable, Power Distribution Module, Thermal Management System, and Vehicle Interface Control Module segments.

India Electric Vehicle (EV) Component Market – By End Use

Based on end use, the India electric vehicle (EV) component market is bifurcated into OEM and Aftermarket segments. The OEM (original equipment manufacturer) segment holds a higher share in the India electric vehicle (EV) component market by end use. This segment's dominance is attributed to the increasing demand for electric vehicle (EV) components directly integrated into the manufacturing process by vehicle makers. As EVs gain traction, OEMs are pivotal in shaping the market, ensuring the seamless integration of components into the production of EVs, thereby contributing significantly to the overall growth of the electric vehicle (EV) component market in India.

India Electric Vehicle (EV) Component Market – By Region

Regionally, the India electric vehicle (EV) component market is divided into North India, South India, East India, and West India.

Competitive Landscape

Major players operating in the India electric vehicle (EV) component market include Exide Industries Ltd, Amara Raja Batteries Ltd, Eastman Auto & Power Ltd, Okaya Power Pvt Ltd, Panasonic Corp., Robert Bosch GmbH, Contemporary Amperex Technology Co. Ltd (CATL), CY International, and DENSO CORP. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In June 2023 - Musashi Seimitsu Industries, a Japan-based auto components manufacturer, entered the India EV market by partnering with Bharat New-Energy Motors. The company announced their plans to invest INR 70 crore in the first phase to set up an assembly line for EV components at their Bengaluru facility. Musashi's expertise in manufacturing transmission components will be leveraged to produce a new EV unit, including a motor, PCU, and gearbox. Manufacturing of e-Axles began in Bengaluru in October 2023, with plans for international partnerships as well.

• In January 2023 - Omega Seiki Mobility Pvt announced a significant investment of USD 981 million (INR 8 billion) in India to establish two manufacturing facilities in the country, focused on producing EV components, including batteries and powertrains. The company entered into partnerships, collaborating with startup iM3NY for battery production and forming a joint venture with Jae Sung Tech Korea to locally manufacture EV powertrains. The investment aims to address the increasing demand for EV components in India, supporting the country's transition to electric mobility.

Scope of the Report

By Vehicle Type

• Two-Wheelers

• Three-Wheelers

• Passenger Cars

• Commercial Vehicles

By Component

• Battery Pack

• Motor

• Controller

• Electric Vehicle (EV) Supply Equipment

• DC–DC Converter

• High-Voltage Cable

• Power Distribution Module

• Thermal Management System

• Vehicle Interface Control Module

By End Use

• OEM

• Aftermarket

By Region

• North India

• South India

• East India

• West India

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. India Electric Vehicle (EV) Component Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Growing adoption of electric vehicles
         2. Rising environmental awareness and the need to reduce emissions
      2. Restraints
         1. Infrastructure challenges
         2. Quality standards
      3. Opportunities
         1. Manufacturing hub
         2. Innovation and localization
      4. Challenges
         1. EV component market is competitive
         2. Range and charging
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. India Electric Vehicle (EV) Component Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Vehicle Type
         1. Two-Wheelers
            1. Scooters
            2. Motorcycles
         2. Three-Wheelers
            1. E-Rickshaws
            2. E-Autos
            3. Retrofitted Rickshaws
         3. Passenger Cars
         4. Commercial Vehicles
      2. By Component
         1. Battery Pack
         2. Motor
         3. Controller
         4. Electric Vehicle (EV) Supply Equipment
         5. DC–DC Converter
         6. High-Voltage Cable
         7. Power Distribution Module
         8. Thermal Management System
         9. Vehicle Interface Control Module
      3. By End Use
         1. OEM
         2. Aftermarket
      4. By Region
         1. North India
         2. South India
         3. East India
         4. West India
5. Competitive Landscape
   1. List of Key Players and Their Range
   2. India Electric Vehicle (EV) Component Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Development (Merger, Acquisition, Partnership)
6. Impact of Covid-19 on India Electric Vehicle (EV) Component Market Industry
7. Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook, SWOT Analysis)
   1. Exide Industries Ltd
   2. Amara Raja Batteries Ltd
   3. Eastman Auto & Power Ltd
   4. Okaya Power Pvt Ltd
   5. Panasonic Corp.
   6. Robert Bosch GmbH
   7. Contemporary Amperex Technology Co. Ltd (CATL)
   8. CY International
   9. DENSO CORP.
   10. Other prominent players
8. Key Strategic Recommendations
9. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3. Market Breakdown & Data Triangulation
      1. Secondary Research
      2. Primary Research
   4. Breakdown of Primary Research Respondents
   5. Assumption & Limitation

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       India Electric Vehicle (EV) Component Market Segmentation

Figure 2       India Electric Vehicle (EV) Component Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2022

Figure 4       India Electric Vehicle (EV) Component Market Size, By Value (USD Billion), 2019–2029

Figure 5       India Electric Vehicle (EV) Component Market Share, By Vehicle Type, By Value, 2019–2029

Figure 6       India Electric Vehicle (EV) Component Market Share, By Component, By Value, 2019–2029

Figure 7       India Electric Vehicle (EV) Component Market Share, By End Use, By Value, 2019–2029

Figure 8       India Electric Vehicle (EV) Component Market Share, By Region, By Value, 2019–2029

List of Tables      

Table 1        India Electric Vehicle (EV) Component Market Share, By Vehicle Type, By Value, 2019–2029

Table 2        India Electric Vehicle (EV) Component Market Share, By Component, By Value, 2019–2029

Table 3        India Electric Vehicle (EV) Component Market Share, By End Use, By Value, 2019–2029

Table 4        India Electric Vehicle (EV) Component Market Share, By Region, By Value, 2019–2029

Table 5        Exide Industries Ltd Company Overview

Table 6        Exide Industries Ltd Financial Overview

Table 7        Amara Raja Batteries Ltd Company Overview

Table 8        Amara Raja Batteries Ltd Financial Overview

Table 9        Eastman Auto & Power Ltd Company Overview

Table 10      Eastman Auto & Power Ltd Financial Overview

Table 11      Okaya Power Pvt Ltd Company Overview

Table 12      Okaya Power Pvt Ltd Financial Overview

Table 13      Panasonic Corp. Company Overview

Table 14      Panasonic Corp. Financial Overview

Table 15      Robert Bosch GmbH Company Overview

Table 16      Robert Bosch GmbH Financial Overview

Table 17      Contemporary Amperex Technology Co. Ltd (CATL) Company Overview

Table 18      Contemporary Amperex Technology Co. Ltd (CATL) Financial Overview

Table 19      CY International Company Overview

Table 20      CY International Financial Overview

Table 21      DENSO CORP. Company Overview

Table 22      DENSO CORP. Financial Overview