India Leaps Ahead: India’s EV Battery Market Could Be Worth $300 Billion by 2030
India’s “leapfrog” vision of an electric, shared, and connected mobility system may result in a $300 billion domestic market for electric vehicle (EV) batteries between now and 2030, representing more than one-third of global EV battery demand over this time period, according to our new report.
In support of its commitment to sell only EVs in country by 2030, India has the opportunity to assume a global leadership position in battery manufacturing but must make new policy commitments to achieve it.
By doing so, India can position itself to win nearly 80 percent of an estimated $300 billion total domestic EV battery market between now and 2030, according to the report.
Why This Matters
India is at a critical juncture in its infrastructure, energy, and mobility development. The nation has seen a 10 percent annual increase in vehicles registrations over the last decade and is set to surpass Germany as the world’s fourth-largest car market by domestic sales by the end of 2017. If current mobility trends continue, the number of personal vehicles in India could increase three- to four-fold by 2030, at significant direct and indirect costs to India’s citizens, economy, and environment. Now, India has set ambitious targets of installing 175 gigawatts of renewable energy generation by 2022, and a draft government target aims to generate 57 percent of India’s electricity from non-fossil sources by 2027. These targets, coupled with India’s electric mobility vision, can create more value and be more readily achieved when pursued together, rather than separately. And as mobility costs impact low- and moderate-income citizens the most, this transformation could provide important economic and social benefits to this population segment.