India Eyes $300 Billion Battery Market From National EV Push

Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

With a major boost for electric vehicles planned in private and public transportation by the Indian government over the next few years, a similar push is now being planned in the battery manufacturing sector as well.

The Indian government’s planning arm, NITI Aayog, expects that a push for electric vehicles can deliver a $300 billion market for domestic battery manufacturers by 2030. India plans to stop the sale of fossil fuel-powered vehicles by 2030.

A study conducted jointly by NITI Aayog and US-based Rocky Mountain Institute revealed that the demand for batteries in India due to the planned EV revolution would account for two-fifths of the global battery demand creating a market worth $300 billion. Initially, the Indian manufacturers can capture 25-40% of this market.

Various arms of the Indian government have proposed a policy for easy swap of batteries once they outlive their usage. This would, again, create a huge market for battery manufacturers as well as other intermediaries.

The joint study also proposes implementation of a ‘feebate’ scheme to promote manufacturing and use of electric vehicles in the country. Inefficient vehicles, such as those using fossil fuels, will face a surcharge while electric vehicles would receive rebates which can be passed on to the end consumers to encourage sales.

Initially, Indian manufacturers may import lithium-ion cells and assemble battery packs for sale in the country. Once the manufacturing capabilities mature they may start production of lithium-ion cells domestically. The approach would be similar to one followed in manufacturing solar cells and solar panels. Using this approach, Indian manufacturers can capture as much as an 80% share in the domestic market valued at $240 billion.

Once the automobile and battery technology matures, India may well turn an exporter to other countries.

However, in order to make this plan a success, the battery prices must fall sharply over time, like the fall we have seen in the solar panel prices. The Indian government has taken steps to ensure that a low-cost ecosystem is ready for the end-consumers to aggressively adopt electric vehicles.

Learning from the renewable energy competitive auctions, the Indian government has launched tenders for electric vehicles as well. Tata Motors and Mahindra & Mahindra, both Indian companies, are set to deliver a total of 500 electric sedans by the end of this month. They, along with several others, are expected to participate in a follow-up tender for 9,500 electric sedans, and potentially another tender for 10,000 EVs in March 2018. Additionally, tenders are being planned for setting up charging stations as well.


Have a tip for CleanTechnica? Want to advertise? Want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Latest CleanTechnica TV Video


I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it!! So, we've decided to completely nix paywalls here at CleanTechnica. But...
 
Like other media companies, we need reader support! If you support us, please chip in a bit monthly to help our team write, edit, and publish 15 cleantech stories a day!
 
Thank you!

Advertisement
 
CleanTechnica uses affiliate links. See our policy here.

Saurabh

An avid follower of latest developments in the Indian renewable energy sector.

Saurabh has 1037 posts and counting. See all posts by Saurabh