India's electric vehicle (EV) component market is set to expand nearly eightfold — from ₹41,000 crore in 2025 to ₹3.55 lakh crore by 2032, according to a report released on Friday, 10 July 2025. The findings, published jointly by the India Energy Storage Alliance (IESA) and Customized Energy Solutions (CES), project a compound annual growth rate (CAGR) of 38% over the seven-year period — far outpacing global averages.

Key Drivers of Growth

Battery packs, motors, and power electronics are identified as the primary engines of this expansion. Battery packs alone are expected to account for more than half of the component market in 2025, with motors, inverters, and battery management systems (BMS) gaining share as original equipment manufacturers (OEMs) deepen drivetrain integration.

The report notes that motors and BMS are localising faster than other segments, owing to their software-driven nature and comparatively lower capital requirements. By contrast, battery packs and inverters remain the most import-dependent segments, together representing nearly 60% of an EV's cost structure — a vulnerability that domestic manufacturers will need to address.

The Incremental Opportunity

The incremental market opportunity over this period is pegged at ₹3.14 lakh crore. According to the report, this windfall will disproportionately benefit domestic firms that invest in research and development, manufacturing capability, and supply chain resilience. The findings were unveiled at India Energy Storage Week 2026, held at Yashobhoomi (IICC), New Delhi, which drew over 200 exhibitors and more than 10,000 industry leaders for policy discussions, technical exchanges, and major sector announcements.

What Industry Leaders Said

Avanthika Satheesh, Director of Consulting at CES, said that India's EV component market surge 'signals the country's readiness to lead in technology and manufacturing.'

Dr. Ian Martinus, Investment and Trade Commissioner for India-Gulf at the Government of Western Australia, signalled cross-border intent, stating: 'Western Australia is ready to partner with India not just as a supplier of critical minerals, but as an innovation and investment ally in the EV revolution.'

The Supply Chain Challenge

Despite the optimistic projections, the report flags a structural concern: India's EV supply chain still leans heavily on imports for its most cost-intensive components. Reducing dependence on imported battery packs and inverters — which together make up close to 60% of vehicle cost — will be critical to realising the full domestic value of this growth. The report underlines that building robust technology ownership, local supply chains, and intellectual property will anchor India's mobility landscape for the next decade.

This comes amid a broader push by the Centre to boost domestic EV manufacturing through incentive schemes and localisation mandates. Whether Indian component makers can convert this market opportunity into genuine technology ownership will determine how much of the ₹3.55 lakh crore pie stays within India's borders.