India Battery Packs for Electric 2W and 3W Vehicles Market Analysis and Forecast to 2032: By Battery Type (Lithium-ion Battery, Lead Acid Battery, Solid State Battery) and Vehicle Type (Electric 2-Wheelers, Electric 3-Wheelers)

India Battery Packs for Electric 2W and 3W Vehicles Market Analysis and Forecast to 2032: By Battery Type (Lithium-ion Battery, Lead Acid Battery, Solid State Battery) and Vehicle Type (Electric 2-Wheelers, Electric 3-Wheelers)

The India Battery Packs for Electric 2W and 3W Vehicles market was valued at US$ 729.51 million in 2022 and it is anticipated to grow up to US$ 11,190.61 million by 2032, at a CAGR of 28.63% during the forecast period.

A battery pack is a device that stores electrical energy to provide power to an electrical system, such as an electric vehicle (EV) or an energy storage system (ESS). The energy is stored in cells that are all connected to one another in the battery pack. Battery pack is a rechargeable battery pack used to power e-vehicles. Batteries vary according to the voltage, total charge capacity (amp hours), weight, the number of charging cycles before performance degrades, and ability to handle over-voltage charging conditions.

An electric vehicle battery pack is a set of rechargeable batteries that are used to power an electric automobile. It consists of two or more large battery modules, sub-assembled into what are known as modules. These modules are then put together using various connectors and hardware to form the assembled battery pack.

Batteries are crucial components in consumer goods such as phones and laptops, in essential medical and industrial applications needing mobile and backup power supplies, the storage of renewable energy such as solar, and in Electric Vehicles (EVs). Improved energy density, discharge tolerance, cycle life, re-charge times with a low memory effect are some of the key advantages that make Lithium ion batteries a favorite for use in EV applications.

Market Drivers and Trends

Indian Governments are supporting purchase of electric vehicles, in terms of tax credits and incentives. Moreover, central governments are providing exemption from highway toll tax for electric vehicles. For instance, for faster adoption of electric vehicles, the government of India plans to lower the goods & service tax (GST) on e-vehicles from 5% to 12%. Similarly, The Indian government started the FAME India project on April, 2015, to reduce the use of gasoline and diesel vehicles. This project was a critical component of India’s electric mobility. The FAME India Program intends to encourage using all types of automobiles. FAME II plan was launched in April 2019 with a Rs. 10,000 crores budget to support 500,000 e-three-wheelers, 7,000 e-buses, 55,000 e-passenger vehicles, and a million e-two-wheelers. The goal was to increase EV adoption in India. Thus, the increase in government support for development and purchase of electric vehicles, in terms of tax credits, subsidies and incentives, is one of the major factors that propel the demand for electric vehicles, which is in turn predicted to create lucrative growth opportunity for India battery packs for electric 2W and 3W vehicles market share in the forecast period.

Market Restraints and Challenges

As the India accelerates its transition to electric vehicles, demand for batteries has skyrocketed in major automotive markets. To address shortages of supplies, automotive and battery manufacturers are building their own battery gigafactories or forming joint ventures. According to the AFP report, India's lithium-ion (Li-ion) battery demand is currently 3 GWh and is expected to grow to 20 GWh by 2026 and 70 GWh by 2030. By 2030, just to serve the local demand of Li-ion batteries, India would need upwards of an estimated $10 billion investments in cell manufacturing capacity, with additional investments in raw material refining capacities.

This rapid adoption of new technology creates significant challenges, including labour and material shortages, delays in the construction of gigafactories to make batteries at scale, and competition for resources in the supply chain, among others. In reality, the battery supply chain risks resembling the current semiconductor chip shortage, in which demand growth has outpaced capital investment in new supply. Furthermore, environmental, social, and governance (ESG) factors will become more important, raising a new set of problems for businesses to address. Additionally, environmental, social, and governance (ESG) variables will have a bigger impact, posing a new set of problems for companies to deal with.

India Battery Packs for Electric 2W and 3W Vehicles Market Segmental Overview

The report analyses the India Battery Packs for Electric 2W and 3W Vehicles market based on battery type and vehicle type.

India Battery Packs for Electric 2W and 3W Vehicles Market by Battery Type

Based on battery type, it is segmented into lithium-ion battery, lead acid battery, and solid state battery. The lithium-ion battery segment is expected to have the largest India Battery Packs for Electric 2W and 3W Vehicles market share in 2022.

Lithium-ion Battery is the most common battery storage system in e-two-wheelers. Lithium-ion batteries have a high power-to-weight ratio, improved high-temperature performance, and a reduced self-rate, among other advantages. Factors such as increased adoption of electric vehicles (EVs) and hybrid electric vehicles (HEVs), as well as an increase in industry preference for the use of lithium-ion batteries, drive the development of the electric two-wheeler lithium-ion battery management system market. Furthermore, increased adoption of rechargeable batteries propels market development. Additional growth prospects for market participants are provided by the rise in cloud-connected battery management system adoption, rising demand for renewable energy sources, and rising popularity of e-bikes and e-scooters. The rapidly growing EV industry in India is propelling the demand for lithium-ion battery market. The Indian government's aim to have all new vehicles sold in 2030 be electric is expected to further increase the demand for these batteries over the next decade.

Currently, only a small percentage of vehicles on Indian roads are electric, but this is expected to change rapidly as more charging infrastructure is built and battery prices decline. Several automakers have already announced their plans to launch EVs in India, which will help boost the sales of these vehicles.

Furthermore, the Indian Government announced the National Mission on Transformative Mobility and Battery Storage in 2020 to create an ecosystem for manufacturing high-performance, safe, and affordable batteries in India lithium-ion battery market. The government plans to provide incentives to manufacturers and setup a recharge infrastructure to promote the adoption of electric vehicles (EVs).

Additionally, the government has launched several schemes such as FAME II and FAME India Scheme to support the manufacturing of EVs and their components, including lithium-ion batteries. The incentive scheme worth INR 180 billion (about USD 2.4 billion) will be directed toward advanced cell chemistry, aimed at bringing at least 50 GW of lithium-ion batteries to be manufactured in India.

Similarly, the Indian Government has reduced the GST on all types of lithium-ion batteries from 28% to 18%. This has reduced the cost of production and made lithium-ion batteries more affordable in India. Additionally, the government’s push towards renewable energy sources has also increased the demand for efficient storage solutions such as lithium-ion batteries.

India Battery Packs for Electric 2W and 3W Vehicles Market by Vehicle Type

Based on vehicle type, it is bifurcated into electric 2-wheelers and electric 3-wheelers. The electric 2-wheelers segment is expected to dominate the market during the forecast period.

India is emerging as a lucrative market for electric 2-wheelers. The increased use of shared micro-mobility services, particularly in India, is driving the spread of electric scooters in cities. The low price structure and app-based operations are drawing more customers every day, driving demand for electric 2-wheelers. 2W account for 80.6 per cent of the total vehicles sold, and passenger vehicles constitute the next big segment, and represent 12.9 per cent of all domestic sales. A total of 46,29,054 vehicles were exported in FY19, the lion’s share (70.9 per cent) of which comprised 2Ws followed by passenger vehicles (SIAM 2019b).

Although it has been reported that electric bikes and scooters are more expensive to buy than standard two-wheelers, the amount of money saved in relation to increasing fuel costs is motivating a number of players in the logistics, food, delivery, tourism, etc. sector. In order to gain a significant advantage over other market competitors, the companies are investing in the acquisition of these electric two-wheelers and entering into strategic agreements with these vehicle manufacturing companies.

E-scooters witness higher sales than e-motorcycles due to lower upfront costs and the availability of more models in the market, which provide ample options for buyers. The allure of the e-scooter, both as a toy and as a potential vehicle for commuting, is driving its adoption. Thus, several startups are beginning to flood major metropolitan areas with hundreds of ‘rent by minute’ scooters. In addition, several pilot programmes have been launched to gradually implement electric 2-wheelers in cities in order to decrease vehicle emissions. E-scooter popularity is also encouraging traditional two-wheeler manufacturers to join the market. For example, Hero MotoCorp, India's biggest two-wheeler manufacturer, revealed its future electric car brand, VIDA, in March 2022. The first image of the logo, which demonstrates how the new branding would appear, was also made public by the corporation. .

In India, government efforts and incentives play a significant role in the adoption of electric bikes. Under the Delhi EV policy, the Delhi government is now planning to promote electric bikes by providing financial incentives. The transport department of the state government has published a draught proposal to include electric bikes as a new segment in the Delhi Electric Vehicle Policy 2020. It intends to subsidise 25% of the cost of electric cycles (up to Rs 5,500) and provide a fixed extra incentive of Rs 2,000 on the first 10,000 electric cycles. Buyers of the first 10,000 cargo e-vehicles will receive a buying incentive of 33% of the price, up to Rs 15,000 per cargo e-vehicle. Hence, several two-wheeler manufacturers are gearing up to launch their models in the segment, thereby augmenting the segmental as well as overall market growth over the forecast period.

As per Society of Manufacturers of Electric Vehicles (SMEV) report, the sales of electric two-wheelers in India was climbed by 132 percent in 2021. During the year, approximately 233,971 electric two-wheelers were sold, that is up from 100,736 the previous year 2020. SMEV attributes this to FAME 2 policy incentives for high-speed electric two-wheelers, which have made them more affordable than low-speed two wheels. FAME 2 (Faster Adoption and Manufacturing of (Hybrid &) Electric cars in India) is a government-sponsored incentive programme that subsidises the production and purchase of electric cars, including two-wheelers. With continued demand for low-cost electric two-wheelers, key players are planning to launch battery-powered versions of their best-selling models. For instance,

In February 2022, Honda Motorcycle and Scooter India has confirmed that it is planning to launch an electric version of its best-selling scooter Activa. The new EV could be called the Activa E.

In August 2021, Hero announced an upcoming electric scooter and the brand later confirmed in November that the scooter will debut in March 2022. The company has officially launched its new Vida brand, under which electric vehicles will be sold, with the first model set to debut on July 1, 2022.

Major Players in the India Battery Packs for Electric 2W and 3W Vehicles Market

The key players studied in the India Battery Packs for Electric 2W and 3W Vehicles market are Amara Raja Group, Amperex Technology Limited (TDK Corporation), Contemporary Amperex Technology Limited, Exide Industries, Inverted Energy Private Limited, iPower Batteries Pvt. Ltd., Lucas TVS, Okaya Power Group, Toshiba Corporation, Telemax India Industries Pvt. Ltd., and Vision Mechatronics Pvt. Ltd.

COVID-19 Impact

The sudden emergence of the coronavirus pandemic in 2020 will be remembered as the

Please Note: This report will be delivered by publisher within 3-4 business days of order confirmation. Black Swan Event in Indian history. The impact of COVID-19 on the electric vehicle sector has created unexpected complications in the market. It has become difficult for EV makers to meet their sustainability targets while also competing in the post-pandemic trends in the electric vehicle industry. According to recent studies, the COVID-19 outbreak temporarily reduced electric vehicle sales, but the future of car electrification is quite optimistic. Whether it's a 2-wheeler battery packs EV, a 3-wheeler battery packs EV, or a 4-wheeler battery packs EV, electric vehicle makers are gearing up to revive and overcome the economic downturn. The pandemic has disrupted the possible supply chain of electric vehicles, as well as EV batteries, and negatively impacted the public's spending sentiment.

The continuous lockdown forced EV makers to halt production. The Indian EV component firms had already cut production by up to 40 per cent to 50 per cent to control inventories due to dwindling demand. The tremendous job losses and pay-cut have shrunk the purchasing power of the customers.

The government inducement towards relief packages in the future could help the India Battery Packs for Electric 2W and 3W Vehicles market get through an economic crisis brought by COVID 19. As per government think tank Niti Aayog, EV manufacturers may suffer a delay in production as their initial focus will be to reviving demand and producing Bharat Stage-VI vehicles, and curbing imports of Chinese EV components. According to a report, electric vehicles registration has declined by 20% in 2021. The 2-wheeler battery packs EVs have witnessed a decline of 6 per cent.

The 3-wheeler battery packs EVs have experienced the maximum impact of the pandemic with a fall of 37 per cent in sales as compared to 2020. However, a growth of 54 per cent has been noticed in the registration of vehicles with electric bike batteries from the year 2020 to 2021.

Recent Developments

November 2022, TDK Corporation acquired from Amperex Technology Limited which is a consolidated subsidiary of TDK, the shares of Navitasys India Private Limited (Bawal, India, hereinafter NVTI), which is a consolidated subsidiary of ATL. This partnership has done beacuse TDK Group's rechargeable battery business is mainly based in China, but recently expanded similar business in India in order to capture high growth local Indian market.. Also to streamline internal group control, TDK decided to change the shareholding relationship from ATL to TDK.

June 2021, French battery system maker Forsee Power started its series production of lithium-ion batteries for electric two-wheelers (E2W) and electric three-wheelers (E3W) in Pune. The battery production plant has furnished assembly lines and laboratories and testing capabilities. Further, the company has committed to extend its range to high voltage systems for bus, marine, rail, industrial, and commercial vehicles by 2023.

February 2021, Amara Raja Batteries, has inaugurated the country's first lithium-ion cell technology centre at its Tirupati location in Andhra Pradesh.

India Battery Packs for Electric 2W and 3W Vehicles Market Report Coverage

The report offers a comprehensive quantitative as well as qualitative analysis of the current India Battery Packs for Electric 2W and 3W Vehicles market outlook and estimations from 2023 to 2032, which helps to recognize the prevalent opportunities.

A thorough analysis of market trends and restraints is provided.

Region-wise, as well as country-wise conditions, are broadly evaluated in this report.

The forecasts in this report are made by examining the recent trends along with future India Battery Packs for Electric 2W and 3W Vehicles market potential from 2023 to 2032 in terms of revenue.

Porter’s five forces analysis, SWOT analysis, COVID-19 impact analysis, Russia-Ukraine war impact, and PESTLE analysis of the India Battery Packs for Electric 2W and 3W Vehicles market are also analyzed.

Major players in the market are profiled in this report and their key developmental strategies are studied in detail. This will provide an insight into the competitive landscape of the India Battery Packs for Electric 2W and 3W Vehicles industry.

Frequently Asked Questions

Q1. How big is the India Battery Packs for Electric 2W and 3W Vehicles market?

Ans. The India Battery Packs for Electric 2W and 3W Vehicles market size was US$ 729.51 million in 2022 and is anticipated to reach US$ 11,190.61 million in 2032, growing at a rate of 28.63% from 2023 to 2032.

Q2. What is the India Battery Packs for Electric 2W and 3W Vehicles market growth rate?

Ans. The growth rate of the India Battery Packs for Electric 2W and 3W Vehicles market is 28.63% from 2023 to 2032.

Q3. Which segment accounted for the largest India Battery Packs for Electric 2W and 3W Vehicles market share?

Ans. Based on vehicle type, it is bifurcated into electric 2-wheelers and electric 3-wheelers. The electric 2-wheelers segment is expected to be the largest segment in the India Battery Packs for Electric 2W and 3W Vehicles market in 2022.

Q4. Who are the key players in the India Battery Packs for Electric 2W and 3W Vehicles market?

Ans. The India Battery Packs for Electric 2W and 3W Vehicles market report includes players such as Amara Raja Group, Amperex Technology Limited (TDK Corporation), Contemporary Amperex Technology Limited, Exide Industries, Inverted Energy Private Limited, iPower Batteries Pvt. Ltd., Lucas TVS, Okaya Power Group, Toshiba Corporation, Telemax India Industries Pvt. Ltd., and Vision Mechatronics Pvt. Ltd.

Q5. What are the factors driving the India Battery Packs for Electric 2W and 3W Vehicles market growth?

Ans. The major factors driving the growth of the market are increase in government support for development and purchase of electric vehicles and growth in demand for zero emission vehicles.

Q6. What are the key growth strategies of India Battery Packs for Electric 2W and 3W Vehicles market players?

Ans. The key growth strategies of India Battery Packs for Electric 2W and 3W Vehicles market players are business expansion, partnerships, joint ventures, collaborations, product launch, and deals.

Please Note: This report will be delivered by publisher within 3-4 business days of order confirmation.