India’s electric vehicle (EV) ecosystem is entering a transformative phase, with battery demand projected to grow tenfold—from 20 GWh in 2025 to a massive 200 GWh by 2032. This sharp rise signals a structural shift from policy-driven adoption to a mature, manufacturing-led ecosystem. At the centre of this growth story are Exide & Amara Raja, two legacy battery leaders now repositioning themselves for the EV future.
Strong Demand Backed by Rising EV Adoption
The surge in battery demand is closely tied to India’s rapidly expanding EV market. In 2025 alone, EV sales crossed 2.5 million units, creating a strong foundation for future growth. Electric two-wheelers dominated early adoption with 1.5 million units, but the next phase will be driven by passenger cars and light commercial vehicles. This evolving demand mix is expected to significantly boost battery consumption, benefiting Exide & Amara Raja in the long run.
Technology Evolution Driving Market Expansion
Battery technology is also undergoing rapid transformation. Currently, Nickel Manganese Cobalt (NMC) chemistry holds around 70% share in the two-wheeler segment. However, Lithium Iron Phosphate (LFP) batteries are gaining traction across other EV categories due to better safety and cost efficiency. Looking ahead, next-generation technologies like LMFP, sodium-ion, and solid-state batteries are expected to enter the market gradually.
On the motor front, BLDC motors dominate two-wheelers with a 71% share, while PMSM motors control over 90% of passenger EVs, reflecting technological standardisation.
Strategic Shift by Industry Leaders
To capitalize on this opportunity, Exide & Amara Raja are aggressively investing in lithium-ion gigafactories and advanced battery assembly units. Their focus is shifting from traditional lead-acid batteries to high-value EV components.
India’s Push Toward Localisation
A key trend shaping the industry is localization. The value chain is moving beyond basic assembly toward domestic manufacturing of cells, power electronics, and components. This positions Exide & Amara Raja not only as domestic leaders but also as potential global exporters in the EV supply chain.
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