INDIA EV BATTERY MARKET
In India, 238,000+ registered electric vehicles were sold. They were mainly based on low speed two wheelers and electric three wheelers. There were estimated 59,000 unregistered three wheeler units sold.
Tier 1 and Tier 2 cities were the main hubs for sales in this market. The increasing market will mainly be driven by central and state subsidies. Upcoming battery plants, and increasing battery recycling will decrease battery pricing which will improve the battery pricing and develop the overall market in India.
INDIA EV BATTERY MARKET SEGMENTATION
INDIA EV BATTERY MARKET DYNAMICS
FAME 2 incentivises Rs 150 per KwH for electric vehicles using Li ion batteries across the country. In 2021, the Production Linked Incentive (PLI) scheme for manufacturing advanced chemistry cell (ACC) batteries at Rs 18,100 crore was initiated. This is done to attract foreign investments to develop battery manufacturing in the country to 50 GWh yearly.
The investment of Rs 18,100 crore aims to gather an overall of Rs 45,000 crore of investments to develop battery manufacturing in the country, mainly Li ion for electric vehicles and consumer goods. The amount will increase with higher specific energy density and cycles and improved local value addition as an incentive to improve battery technology. Each selected ACC battery storage manufacturer will have to commit to set-up an ACC manufacturing facility of at least 5 GWh capacity and ensure a minimum 60% domestic value addition at the project level within 5 years.
Currently more than 60% of the electric vehicles sold utilise Lead Acid battery. The main reason is that it is much cheaper than a Li ion battery. The batteries utilised have lower power density and don’t have the option of fast charging but is not of concern at the moment to the user due to the higher initial investment.
INDIA EV BATTERY MARKET SIZE AND FORECAST
In 2020, the EV battery market size in India was estimated at $XXB, growing at XX% CAGR till 2026.
Charging stations have been allocated for states across the country with Rs. 10,000 Crore for a period of 3 years commencing from 1st April 2019 under the FAME scheme.
The FAME scheme aims to generate demand by way of supporting 7000 e-Buses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars (including Strong Hybrid) and 10 lakh e-2 Wheelers.
In 2020, Hero electric, Okinawa, Ampere and Ather held the market for EV two wheeler sales. For Passenger cars, Tata, Mahindra, and MG were the largest players.
The average battery utilised in an electric scooter is 1-1.5 kWh with an expected range of 50-60 kms. The battery utilisation for electric three wheeler is the country is also similar. For electric cars the average battery capacity is 30-35 kWh. Tata, Mahindra and MG were the main competitors in this segment.
For Lead acid battery in the Indian market, Amaron and Exide are the market leaders holding more than 70% of the market share combined. The technological maturity as well as the development of connections with OEMs, well developed supply chain and manufacturing establishments across the country
For Li ion battery, the OEMs rely on Chinese manufacturers for battery cells as well as packs as a whole. Tata Autocomp signs a JV with Guoxuan Hi-Tech, to make battery packs for EVs in Pune, India. Toshiba, Denso, and Suzuki have set up a joint venture to develop Li ion batteries. Exide is collaborating with Leclanche SA for Li ion battery production. The joint venture will be called Nexcharge.
Epsilon Advanced Materials has set up a manufacturing plant for components of Li ion batteries with an investment of $807 Million. Ipower batteries based out of Harayana, currently supplies battery packs to 100 OEMs. Gravita India is a firm mainly recycling lead acid batteries who are now focusing on recycling Li ion batteries.
Amperex Technological is planning to set up manufacturing unit in Haryana for Lithium Ion battery manufacturing. Tata chemicals is investing in battery components, Li ion cells as well as recycling of batteries in Gujrat with an initial investment of Rs 800 Cr.Li energy, Amara Raja, and Manikaran Power are other firms who have stepped into Li ion battery production in India