India Energy Storage Alliance (IESA) has projected a sharp rise in India’s electric vehicle battery demand over the coming years, with the market expected to expand from 20 GWh in 2025 to nearly 200 GWh by 2032 as the country accelerates EV adoption, localisation and domestic manufacturing capabilities.
The projection forms part of a study jointly prepared by the India Energy Storage Alliance (IESA) and Customized Energy Solutions.
The report, titled India EV & EV Component Market Outlook 2025-2034, is scheduled to be released during the 12th India Energy Storage Week (IESW) event in New Delhi between July 8 and July 10.
According to the findings, India’s EV opportunity is now expanding beyond vehicle manufacturing and increasingly shifting towards component localisation, battery manufacturing and supply-chain development.
The report noted that the country’s EV industry is evolving into a much larger industrial ecosystem covering batteries, motors, power electronics, advanced chemistries and domestic manufacturing infrastructure.
Debmalya Sen, President of IESA, said the next phase of industry growth is expected to be driven by “localisation, advanced chemistry, and resilient supply chains”.
The study highlighted that India’s EV sales crossed 2.5 million units during 2025, reflecting accelerating consumer adoption across segments.
Electric two-wheelers continued to dominate the market with sales of around 1.5 million units, while electric three-wheelers accounted for nearly 0.7 million units.
The report suggested that although electric two-wheelers currently lead overall volumes, the next major growth phase is likely to come from passenger electric cars and light commercial vehicle fleets.
Vinayak Walimbe, Managing Director of Customized Energy Solutions, said the report is intended to provide strategic direction to “OEMs to investors” looking to capitalise on emerging opportunities within the EV ecosystem.
The study also highlighted significant shifts in battery chemistry technologies across India’s EV market.
NMC (Nickel Manganese Cobalt) batteries currently hold around 70% market share in the electric two-wheeler segment, while LFP (Lithium Iron Phosphate) chemistry is gaining traction across other vehicle categories.
The report additionally explored future technologies including LMFP batteries, solid-state batteries and sodium-ion cells, which are expected to play a larger role through 2032.
In motor technologies, BLDC motors currently account for nearly 71% share within electric two-wheelers, while PMSM motors dominate electric passenger vehicles with market share exceeding 90%.
IESA stated that India is increasingly positioning itself as a global manufacturing hub through localisation of EV components and stronger domestic supply chains.
The report covers multiple industry areas including EV market outlook, battery demand forecasts, component manufacturing trends, battery chemistry evolution and long-term strategic opportunities through 2034.
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India’s electric vehicle ecosystem is entering a high-growth phase supported by rising battery demand, technology evolution and increasing localisation, with domestic manufacturing and supply-chain expansion expected to play a central role in the sector’s next stage of growth.
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Published on: May 15, 2026, 11:43 AM IST
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