The demand for electric vehicles (EVs) looks positive in the coming year. According to a report by GameChanger Law Advisors and Speciale Invest, the Indian EV battery market is projected to grow from $16.77 billion in 2023 to $27.70 billion by 2028, with a compound annual growth rate (CAGR) of 10.56 percent during the period from 2023 to 2028. Furthermore, it is estimated that the EV industry will create approximately 50 million direct and indirect employment opportunities within the next seven years. With a visionary goal of having 30 percent EVs on the roads by 2030, 2024 holds the promise of increased adoption, innovative models, and affordable pricing for EV vehicles, which will also directly impact the demand for EV batteries in the country
“The Indian government has implemented a number of noteworthy measures, such as providing incentives for the growth of domestic industry..By establishing policies like FAME I and II, PLI, and budgetary allotment for the development of EV infrastructure, the Government of India has established a phased approach to the development of EV infrastructure. Installing ultra-fast charging stations in Tier-1, Tier-2, and Tier 3 cities is part of the policy. Range anxiety will be lessened and charging times will be drastically shortened with the creation of ultra-fast charging networks that can charge at rates more than 350 kW. The introduction of state-level laws by some Indian governments would incentivize local players by fostering an atmosphere that is conducive to the purchase of electric vehicles and local manufacture,” remarked Pratik Kamdar, CEO, Neuron Energy.
This expert further says that with the arrival of battery-swapping technology around 2024, will revolutionise long-range mobility—one of the main obstacles facing EV consumers. “Reusing EV batteries is essential for cutting waste and lessening the impact of EVs on the environment. The requirement for resource-intensive, pollutant, and carbon-intensive mining activities is significantly reduced when precious elements like nickel, lithium, and cobalt are recovered from spent batteries. The need of the hour is for intelligent charging systems that maximise charge intervals, make use of renewable energy sources, control grid congestion, and support effective and sustainable charging infrastructure,” added Kamdar.
Experts point out that battery swapping will gain momentum among two and three-wheeler EV users due to the increasing number of electric two-wheelers on our roads a trend expected to strengthen in the coming year.
“Two-wheeler EV adoption is no longer limited to fleet operators; individual purchases are also rising, fueled by growing confidence in their performance and enhanced EV financing options. With more e-commerce and food delivery companies leveraging battery-swapping networks, awareness, visibility, and acceptance are rapidly growing. Our customer base has grown to over 40K drivers, with an additional 200,000 customers currently on our waitlist—showcasing how much user confidence has increased in the three years of our operation. As battery swapping grows in popularity, safety and advancements in battery technology will continue to be key areas of focus in the long term.With heightened production and innovation in the EV sector, the demand for skilled professionals will increase in the coming years,” remarked Pulkit Khurana, Co-Founder of Battery Smart (a major battery swapping network for two and three-wheeler EV's).
Another interesting trend in the EV space is electric vehicle finance, which will help in the overall adoption of EVs in India. Analysts say that gradually the ICE era will be replaced by EVs. "The financial route emerges as a main motivator. The drive for electric vehicle finance is progressing despite the hurdles involved, from purchase motivation to charging platforms. The government, financial institutions, and automakers have been collaborating to make EVs more affordable, but some challenges remain. India will see positive developments for EVs in 2024 with the government's initiatives like FAME under the National Electric Mobility Mission Plan (NEMMP)," remarked Nimish Trivedi, CEO and Co-Founder of Evera.
There will also be global trends and the introduction of new technologies in the EV battery space that may affect the Indian EV battery segment. "The United States will experience a major breakthrough in battery technology in the beginning of 2024 with the launch of Nanotech Energy's new manufacturing facility, Chico 2. This facility, located in California, will focus on producing battery cells made from graphene, which will contribute to the development of innovative energy storage solutions within the country. Nanotech Energy is introducing a groundbreaking development in battery technology through the use of graphene-based battery cells. Graphene-based battery cells are batteries that utilize a thin and highly conductive form of carbon known as graphene, which offers exceptional electrical conductivity, strength, and thinness. This technology holds the potential for enhancing battery performance," said Girish Linganna, Defence and Aerospace analyst and the Director of ADD Engineering Components (India) Limited.
