India Electric Vehicle Components Market-Industry Analysis and Forecast (2024-2030) by Vehicle Type, Propulsion Type, Component Type, End User and Region

India Electric Vehicle Components Market size was Value and Volumed at USD 15.25 Bn in 2023 and is expected to reach USD 109.34 Bn by 2030, at a CAGR of 32.5%.
India Electric Vehicle Components Market Overview
Electric vehicles (EVs) are a model shift in transportation, driven by a collaboration of sophisticated components that redefine automotive technology. The Traction Battery Pack, often referred to as the Electric Vehicle Battery (EVB), reigns as the powerhouse, providing energy storage in DC format to fuel the electric motors. In the Electric Vehicle Components Market, the DC-DC Converter plays a crucial role in efficiently distributing power from the battery to meet diverse component needs and charge the auxiliary battery. The Electric Motor stands as the cornerstone of EVs, transforming electrical energy into kinetic energy to drive the wheels and facilitate the unique regenerative braking system. Comprising two main types, DC and AC motors, it embodies the EV's departure from conventional vehicles. The Power Inverter assumes a critical role in converting power from DC to AC and vice versa, facilitating recharging and managing speed variations. In India's Electric Vehicle Components industry, batteries, constituting 30-40% of EV costs, are essential yet costly. Currently reliant on imports from China, Japan, and Korea, the nation is fostering domestic production. With government-backed initiatives and a $5 billion PLI scheme, domestic Electric Vehicle Components manufacturing plants are emerging.

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The India Electric Vehicle Components industry is experiencing rapid expansion driven by several key factors. Government initiatives promoting electric mobility, such as the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, incentivize EV adoption and bolster infrastructure development, stimulating India Electric Vehicle Components Market growth. Technological advancements, particularly in battery technology, serve as an essential, driving indigenous manufacturing and innovation. Collaborations and investments in local battery production provide to the surging demand for high-performance batteries, paving the way for self-reliance and technological prowess. The increased emphasis on research and development, coupled with strategic partnerships between automotive players and technology firms, accelerates component advancements and augments market competitiveness. The growing environmental consciousness and the quest for sustainable transportation solutions boost the industry's trajectory, creating opportunities for extensive infrastructure expansion, innovative solutions, and India Electric Vehicle Components Market penetration. The convergence of supportive government policies, technological advancements, strategic collaborations, and increasing environmental concerns fosters a rapid growth for the India Electric Vehicle Components, driving it toward a sustainable and transformative future in transportation.
India Electric Vehicle Components Market Dynamics
Driver

Increasing Emphasis on Environmental Sustainability and The Reduction of Carbon Emissions to Boost Market Growth

India's Electric Vehicle Components industry plans an evolutionary path encouraged by the amplified emphasis on environmental sustainability and the crucial drive to curtail carbon emissions.

This transition marks a shift away from conventional combustion engine vehicles, known for their environmental impact, towards the surging wave of fully electric vehicles (EVs), symbolizing a significant transformation in the India Electric Vehicle Components Market. EVs, lauded for their zero tailpipe emissions, emerge as a beacon of environmental accountability, offering a cleaner alternative to fossil fuel-powered counterparts. A significant driver in this revolution lies in the lower operational costs associated with EVs, as charging an electric vehicle proves especially inexpensive than boosting conventional petrol or diesel vehicles, marking an upsurge in cost efficiency. Reduced maintenance costs, due to fewer moving parts in EVs, accentuate their economic appeal compared to internal combustion vehicles. Beyond economic factors, the pivotal driver remains the dire environmental impact and the pursuit of a sustainable future.

The terrible consequences of petrol and diesel usage on the planet, including limited fossil fuel resources and toxic emissions detrimental to public health, have propelled government support for EVs, featuring incentives, tax benefits and reduced registration fees. India aligns its energy ambitions with an ambitious plan targeting 40 percent cumulative electric power installed capacity from non-fossil fuel-based resources by 2030. These EVs not only counter environmental degradation but also offer a seamless driving experience, marked by lower noise pollution and convenient home charging, embodying a modern, sustainable and user-friendly transportation mode. Government initiatives, with incentives and policies, drive growth in the electric vehicle market, nurturing a vibrant ecosystem in line with the global push for sustainable mobility. The path of India Electric Vehicle Components Market sees the nation's persistent commitment to environmental stewardship and the crucial need to combat climate change, paving the way for a transformative and sustainable transportation landscape.

In India, the annual trend of Electric Vehicle (EV) sales is steadily ascending, boosted by evolving consumer preferences and supportive government initiatives. This surge in EV adoption directly influences the growth of the India Electric Vehicle Components Market, catalyzing advancements and demand across various component segments.

Trend

Growing Adoption and Development of Indigenous Electric Vehicle Technologies and Manufacturing Capabilities

The growing trend toward fostering indigenous electric vehicle (EV) technologies and manufacturing capabilities in India is boosted by multiple factors propelling the electric mobility landscape. In the 'Make in India' initiative, the government emphasizes local manufacturing, innovation, and self-reliance. This strategic move actively promotes the development of homegrown EV technologies, aiming to reduce reliance on imported components and build a rapid domestic EV ecosystem. The endeavor not only elevates the nation's technological prowess but also generates employment opportunities while fortifying the economy in which the India Electric Vehicle Components Market in India grows.

Investing in indigenous EV technologies addresses critical energy security concerns by lessening dependence on imported fossil fuels. By cultivating local expertise in EV manufacturing, battery production, and related components, India aspires to achieve self-sufficiency in providing to the increasing demand for electric vehicles. This drive toward localized production significantly enhances the cost efficiency and accessibility of EVs within the Indian market, mitigating challenges associated with imports and rendering electric vehicles more affordable and available. This trend fosters collaborative innovation among domestic manufacturers, startups, research institutions, and global tech partners. Such collaborations foster knowledge exchange, expertise sharing, and technological advancements, accelerating the evolution and adoption of state-of-the-art EV technologies.

Restraint

High Initial Costs hamper Market Growth

The cost of batteries constitutes a significant portion of an electric vehicle's overall expense. Despite recent advancements, lithium-ion batteries, pivotal in EVs, still come with a considerable price tag. This cost has been a deterrent for potential buyers, affecting the affordability of EVs. The production volume of EVs in India is relatively lower compared to conventional vehicles. The absence of economies of scale in manufacturing affects the cost per unit, making EVs more expensive. Enhanced production efficiency and increased scale potentially drive down costs. EVs often come equipped with advanced technology and features. These advanced functionalities, while beneficial, escalate the initial purchase price, making EVs appear more expensive compared to conventional vehicles.

Establishing a rapid charging infrastructure across the country requires significant investment. This infrastructure includes home charging setups and public charging stations. The cost of setting up these charging points adds to the overall initial expense for potential EV buyers. The India Electric Vehicle Components Market faces cost challenges due to importing crucial elements like batteries, impacted by import duties and currency fluctuations. Mitigating this involves reducing reliance on imports and fostering local manufacturing capabilities.
India Electric Vehicle Components Market Segment Analysis
Based on Propulsion Type, the market is segmented into Battery Electric Vehicles, Plug-in Hybrid Electric Vehicles, Fuel Cell Electric Vehicles Hybrid Electric Vehicles and Others. Battery Electric Vehicles dominated the India Electric Vehicle Components Market in 2023 with the largest market share. BEVs provide zero tailpipe emissions, aligning with India's ambitious environmental goals to reduce pollution and combat climate change. The country's increasing focus on sustainability and the urgency to curb air pollution in densely populated cities favor the adoption of emission-free vehicles. India has shown strong government support and incentives for electric mobility, particularly with schemes such as FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) and the push for EV adoption under the National Electric Mobility Mission Plan (NEMMP). These initiatives include subsidies, tax benefits, and incentives for manufacturing, promoting BEVs' adoption.

Advancements in battery technology, including improved energy density, reduced costs, and enhanced charging infrastructure, have addressed some key barriers to BEV adoption. This progress has made BEVs more practical for daily commuting and long-range travel, boosting their popularity which drives India Electric Vehicle Components Market growth. Growing awareness among consumers regarding environmental concerns, coupled with lower operational costs, has increased the appeal of BEVs. Consumers are increasingly seeking cleaner, more cost-effective alternatives, driving the demand for BEVs. The total cost of ownership for BEVs is becoming increasingly competitive compared to conventional vehicles, especially considering the lower fuel and maintenance costs associated with electric vehicles. This economic advantage is encouraging adoption, particularly in urban areas. The government and private entities are investing in expanding the charging infrastructure across major cities and highways, addressing the range anxiety concern and promoting BEV adoption.

The distribution of production costs in India Electric Vehicle Components Market encompasses key aspects such as battery manufacturing, R&D, infrastructure development, and technological advancements, collectively influencing the overall cost structure and market dynamics.
India Electric Vehicle Components Market Regional Insights
The growth of the India Electric Vehicle Components industry is driven by a confluence of factors driving the nation's transition towards sustainable and eco-friendly transportation. Government initiatives and policies, such as the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, provide substantial incentives, fostering a conducive environment for both manufacturers and consumers. Increasing environmental awareness, coupled with rising concerns about air quality and climate change, has led to a surge in demand for electric vehicles (EVs). The India Electric Vehicle Components Market is buoyed by the automotive industry's dedication to innovation and technological advancements, particularly in battery technology and charging infrastructure. These advancements significantly propel the industry's growth path.

North India, especially the National Capital Region (NCR) surrounding Delhi and neighboring areas, acts as a significant hub for EV innovation and adoption. The region's high population density and urbanization rate have spurred government initiatives, leading to increased EV awareness and adoption. Delhi's EV policy, offering subsidies and incentives for electric vehicles, has propelled demand. Noida and Gurugram house numerous EV manufacturing units and research facilities, augmenting the region's role in EV components production. The southern states, particularly Karnataka, Tamil Nadu, and Telangana are crucial players in India's EV landscape. Bengaluru, Karnataka's capital, is an innovation hub hosting several EV startups, research centers, and battery manufacturing facilities. Tamil Nadu, with its industrial prowess and automotive expertise, attracts major EV manufacturers to set up production units. Hyderabad in Telangana fosters a growing EV ecosystem, leveraging its technological advancements and government support.
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India Electric Vehicle Components Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
US $ 15.25 Bn.


Forecast Period 2024 to 2030 CAGR:
32.5%
Market Size in 2030:
US $ 109.34 Bn.


 Segments Covered:
by Vehicle Type
Passenger Vehicles
Commercial Vehicles
Others


by Propulsion Type
Battery Electric Vehicle
Plug-in Hybrid Electric Vehicle
Fuel Cell Electric Vehicle
Hybrid Electric Vehicle
Others


by Component Type
Battery Pack
Electric Motors
Charging Infrastructure
Power Electronics
Electric Drivetrain
Others


by End-User
Individual Consumers
Fleet Operators
Commercial Entities
Government and Public Agencies
Others



India Electric Vehicle Components Key Players
1. SEG Automotive India Private Limited (Bengaluru, India)
2. Tata Motors Limited (Mumbai, India)
3. Mahindra Electric Mobility Limited (Bengaluru, India)
4. Avtec Limited (Delhi, India)
5. Exide Industries Ltd. (Kolkata, India)
6. Bosch Limited (Bengaluru, India)
7. Ashok Leyland (Chennai, India)
8. Maruti Suzuki (New Delhi, India)
9. Okaya Power Pvt. Ltd(New Delhi, India)
10. Amara Raja Batteries Ltd. (Andhra Pradesh, India)
11. Sparco Batteries Pvt. Ltd. (Pune, India)
12. Eastman Auto & Power Ltd. (New Delhi, India)
13. Exicom Tele-Systems Ltd. (Gurgaon, India)
14. Delta Electronics India (Gurugram, India)
15. Hero Electric Vehicles Pvt. Ltd. (New Delhi, India)

Frequently Asked Questions:

1] What is the growth rate of the Global Electric Vehicle Components Market?
Ans. The Global Electric Vehicle Components Market is growing at a significant rate of 32.5% during the forecast period.

2] Which region is expected to dominate the Global Electric Vehicle Components Market?
Ans. North India is expected to dominate the Electric Vehicle Components Market during the forecast period.

3] What is the expected Global Electric Vehicle Components Market size by 2030?
Ans. The Electric Vehicle Components Market size is expected to reach USD 109.34 Billion by 2030

4] Which are the top players in the Global Electric Vehicle Components Market?
Ans. The major top players in the Global Electric Vehicle Components Market are SEG Automotive India Private Limited (Bengaluru, India), Tata Motors Limited (Mumbai, India), Mahindra Electric Mobility Limited (Bengaluru, India), Avtec Limited (Delhi, India), Exide Industries Ltd. (Kolkata, India) and Others.

5] What are the factors driving the Global Electric Vehicle Components Market growth?
Ans. Government initiatives and technological advancements are expected to drive market growth during the forecast period.