India's EV Battery Demand Projected to Reach 200 GWh by 2032: IESA Forecast

India's Electric Vehicle Market on the Cusp of a Significant Transformation

India's electric vehicle (EV) battery demand is projected to grow 10 times from 20 GWh in 2025 to 200 GWh by 2032, according to industry body Indian Energy Alliance (IESA). This significant growth is not limited to vehicle manufacturing, but also encompasses component localisation and supply chain development as India positions itself as a global manufacturing hub.

The IESA, in association with Customized Energy Solutions (CES), is set to release a comprehensive study report titled 'India EV & EV Component Market Outlook 2025-2034' at the 12th India Energy Storage Week (IESW), scheduled to take place from July 8-10 in the national capital. The study highlights the substantial growth potential of India's EV market and the need for strategic investments in localisation, advanced chemistry, and resilient supply chains.

EV Industry on the Verge of a Significant Transformation

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The EV industry in India is undergoing a transformation from a policy-driven transition to a sprawling industrial ecosystem encompassing batteries, motors, power electronics, advanced chemistries, localised manufacturing, and robust supply chain investments. India's EV market has entered an era of unprecedented growth, with battery demand projected to rise tenfold by 2032.

Key Statistics:

The report notes that India's EV sales crossed 2.5 million units in 2025, including 1.5 million two-wheelers and 0.7 million three-wheelers, indicating a 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.

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According to the report, India's EV market is approaching an inflexion point, with electric two-wheelers continuing to lead volumes. However, the next phase of growth is expected to come from passenger electric cars and light commercial fleets. The report also highlights significant technology shifts underway in battery chemistry and motor technology.

Battery Chemistry and Motor Technology Evolution

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. The report explores the future of LMFP, solid-state, sodium-ion, and other evolving cell technologies through 2032. In motor technology, BLDC motors account for 71 per cent of the two-wheeler market, while PMSM motors have emerged as the preferred technology in electric passenger vehicles with over 90 per cent market share.

The report aims to provide all stakeholders, from OEMs to investors, with the strategic direction required to capitalise on emerging opportunities. Vinayak Walimbe, Managing Director of Customized Energy Solutions, stated, "This report is a comprehensive guide to navigating the EV market in India and identifying opportunities for growth and investment."