Exide, Amara Raja: EV battery theme gains traction; what IESA’s latest demand forecast means

IESA said that India's electric vehicle (EV) battery demand is projected to grow 10 times from 20 GWh in 2025 to 200 GWh by 2032.

Citing a study, IESA said the EV opportunity in India is no longer limited to vehicle manufacturing; the largest strategic gains may lie in component localisation and supply chain development as India positions itself as a global manufacturing hub.

The IESA, in association with Customised Energy Solutions (CES), is set to release the study report titled 'India EV & EV Component Market Outlook 2025-2034' at the 12th India Energy Storage Week (IESW), to be held from July 8 to 10 in the national capital.

The study has found that India's EV battery demand is projected to rise sharply from 20 GWh in 2025 to 200 GWh by 2032, a tenfold increase, the industry body said.

EV industry in India

The EV industry in the country is on the cusp of a significant transformation. What began as a policy-driven transition is now maturing into a sprawling industrial ecosystem encompassing batteries, motors, power electronics, advanced chemistries, localised manufacturing, and robust supply chain investments, IESA said in a statement.

"With India's EV market entering an era of unprecedented growth and battery demand projected to rise tenfold by 2032, the industry's next leap will be driven by localisation, advanced chemistry, and resilient supply chains," said Debmalya Sen, President of IESA.

The report noted that India's EV sales crossed 2.5 million units in 2025, including 1.5 million two-wheelers and 0.7 million three-wheelers, reflecting the rapidly evolving adoption and manufacturing ecosystem.

The report covers a wide spectrum, including the EV market outlook, battery demand forecasts, battery chemistry evolution, component manufacturing trends, supply chain developments, and strategic outlook for the industry through 2034.

Expert Speak

Vinayak Walimbe, managing director of Customised Energy Solutions, stated, "This report aims to give all stakeholders, from OEMs to investors, the strategic direction required to capitalise on these emerging opportunities."

Initial findings indicate the market is approaching an inflection point. While electric two-wheelers continue to lead volumes, the next phase of growth is expected from passenger electric cars and light commercial fleets.

The report uncovers significant technology shifts already underway. In battery chemistry, NMC (Nickel Manganese Cobalt) currently dominates the electric two-wheeler segment at a 70 per cent market share, while LFP (Lithium Iron Phosphate) chemistry is rapidly gaining ground in other segments.

It further explores the future of LMFP, solid-state, sodium-ion, and other evolving cell technologies through 2032.

In motor technology, BLDC motors account for 71% of the two-wheeler market, while PMSM motors have emerged as the preferred technology in electric passenger vehicles with over 90% market share.

Impact on EV battery stocks

The sharp rise projected in India’s EV battery demand is seen as a long-term positive for battery makers. As EV adoption accelerates, demand for lithium-ion batteries, energy storage systems, and related components is expected to rise significantly.

Analysts note that companies that are investing early in battery manufacturing, localisation, and advanced cell technology could benefit from stronger revenue growth opportunities in the coming years.

Investors are also likely to closely track capacity expansion plans, technology partnerships, and government policy support for the domestic EV ecosystem, they note.

How shares were performing in early trade on Friday

Shares of Exide Industries were trading flat at ₹349.05 apiece on the NSE, while Amara Raja Energy & Mobility was up 0.5% at ₹839.45. HBL Engineering was down 0.9% at ₹777.40 apiece.