Surge in Electric Vehicle Production in India
The surge in electric vehicle (EV) production in India is expected to boost the growth of the lithium-ion and lead acid battery market in the country. This is because EVs require large amounts of batteries to power their electric motors, and the demand for batteries is expected to increase as more EVs are produced and sold. Additionally, the Indian government has set a target of achieving 30% electric vehicle penetration in the country by 2030 and has announced several incentives to encourage the adoption of electric vehicles. These incentives include tax exemptions, subsidies for purchasing electric vehicles, and the development of charging infrastructure. According to UnivDatos Market Insights Analysis, The Lithium-Ion And Lead Acid Batteries Market were valued at USD 105 billion in the year 2022 and is expected to grow at a strong CAGR of around 17.3% during the forecast period (2023-2030).
As more EVs are produced and sold in India, the demand for lithium-ion batteries is expected to increase. This will drive the growth of the lithium-ion and lead acid battery market in the country, as manufacturers must produce more batteries to meet the increasing demand. Furthermore, the surge in EV production in India is expected to create new opportunities for companies specializing in high-capacity batteries, such as lithium-ion batteries. These companies are likely to invest in research and development to improve the performance and efficiency of their products, which will further boost the growth of the lithium-ion and lead acid battery market in India.
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Rising Renewable Energy Integration
India's lithium-ion and lead acid battery market is poised for significant growth in the coming years, driven by the country's ambitious renewable energy integration plans. As the government pushes for increased solar and wind energy deployment, the demand for lithium-ion batteries to store and manage this energy is expected to soar. Furthermore, the increasing popularity of electric vehicles (EVs) is another key driver for the lithium-ion and lead acid battery market in India. As the government promotes the adoption of EVs through various incentives and policies, the demand for EV batteries is likely to surge. Additionally, the growing demand for energy storage solutions in various sectors, such as grid-scale energy storage, industrial applications, and residential energy storage, will also contribute to market growth.
Rise in Government Initiatives in Developing Countries
The rise in government initiatives in developing countries, such as India, is a significant driver for the lithium ion and lead acid battery market. Governments in these countries are investing heavily in renewable energy infrastructure, which is expected to increase the demand for lithium-ion batteries to store and manage this energy. The Indian government has set ambitious targets for renewable energy deployment, and it is taking various steps to achieve these targets. There are some government initiatives such as: -
The government has announced plans to install 175 GW of renewable energy capacity by 2022 and has launched various schemes and incentives to promote the adoption of renewable energy.
FAME II intends to support 7,090 e-Buses, 5 lakh e-3 Wheelers, 55,000 e-4 Wheeler Passenger Cars (including Strong Hybrid) and 10 lakh e-2 Wheelers.
Tax exemption of up to Rs.1,50,000 (USD 1,960) under section 80EEB of income tax while purchasing an EV (2W or 4W) on loan.
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Conclusion
The Indian lithium ion and lead acid battery market is expected to grow significantly during the forecast due to increasing demand for electric vehicles (EVs) and renewable energy sources. The Indian government's push for EV adoption and the introduction of favorable policies and incentives for EV and battery manufacturers are also driving market growth. For instance, by 2030, the Indian government intends to have a fleet that is 30 percent electric. In addition, the goods and services tax (GST) on EVs was reduced from 12 percent to 5 percent in July 2019 and income tax exemptions for potential EV buyers were announced by the Indian government. Moreover, the increasing demand for energy storage solutions for grid-connected renewable energy systems is also expected to boost the market for lithium-ion batteries in India.