India Electric Vehicle Components Market Forecast 2025
This forecast takes a closer look at where the India Electric Vehicle Components Market is heading by 2025, what’s driving the demand, and what opportunities lie ahead.
India’s electric vehicle (EV) journey is picking up pace, and by 2025, the country’s EV components market is expected to witness remarkable growth. With strong government support, rising environmental awareness, and rapid urbanization, the demand for electric vehicles—and more importantly, their components—is rising fast. This forecast takes a closer look at where the India Electric Vehicle Components Market is heading by 2025, what’s driving the demand, and what opportunities lie ahead.
The Road to 2025: A Growing Market
The Indian government has set ambitious targets for electric mobility. Schemes like FAME II and the Production Linked Incentive (PLI) for advanced chemistry cell batteries are encouraging both production and adoption of EVs. As a result, the electric vehicle market is expected to grow at a compound annual growth rate (CAGR) of over 40% until 2025.
With this surge, the EV components market is forecasted to reach a valuation between USD 7–10 billion by 2025. Components like batteries, motors, controllers, and charging systems will see massive demand, creating new opportunities for manufacturers, startups, and investors.
Forecasting the Key Components
- Batteries – Powering the Future
Lithium-ion batteries will continue to dominate the EV landscape. With falling battery prices and innovations in battery chemistry, India is expected to see significant growth in both production and consumption of EV batteries. By 2025, battery demand alone could account for over 40% of the total EV component market. - Electric Motors – Driving Efficiency
Electric motors are critical to EV performance. As technology improves and localized production increases, motors are expected to become more efficient, compact, and cost-effective. Demand for brushless DC motors and permanent magnet motors is expected to rise significantly by 2025. - Power Electronics – The Smart Connectors
The forecast also points to a steep rise in demand for power electronic components—such as inverters, converters, and control units. These components help manage energy flow in the vehicle and are essential for improving efficiency and safety. - Charging Infrastructure – Keeping the Wheels Turning
As EV numbers grow, the need for efficient and accessible charging infrastructure becomes critical. Charging-related components like onboard chargers, connectors, and fast-charging systems will be in high demand. Both public and private sectors are expected to invest heavily in this space. - Thermal Management Systems – Staying Cool
Forecasts indicate rising demand for thermal management systems as EVs become more powerful. Managing heat in batteries and motors is essential for long-term performance, especially in India’s hot climate. By 2025, thermal systems will become a key focus area for manufacturers.
Opportunities and Challenges
The EV components market forecast also highlights growing opportunities for domestic manufacturers. With the government encouraging "Make in India" and reducing dependency on imports, local production is expected to flourish. This opens doors for startups and MSMEs (micro, small and medium enterprises) to enter the supply chain.
However, challenges like raw material availability, technological gaps, and the need for skilled labor may slow progress. Investments in R&D and training will be vital to meet the expected growth targets.
Fore More Info : - https://www.gmiresearch.com/report/india-electric-vehicle-components-market/
Conclusion
By 2025, India’s EV components market is forecasted to become one of the fastest-growing in the world. With strong demand for batteries, motors, power electronics, and more, the industry is on track to reshape India’s automotive landscape. As the electric revolution continues, India is not just adopting EVs—it’s gearing up to be a global hub for EV component manufacturing.
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GMI Research – Consulting & Market Research
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