India’s EV components market set to surge eightfold to Rs 3.55 lakh crore by 2032: Report

New Delhi: India’s electric vehicle (EV) components market is expected to expand eightfold to around Rs 3.55 lakh crore over the next seven years, from Rs 41,000 crore in 2025, according to an industry report.

This forecast comes from the newly released 'India Electric Vehicle & Components Market Overview Report' by India Energy Storage Alliance and Customized Energy Solutions (CES), released at the India Energy Storage Week 2026 event in New Delhi.

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The report pointed to the emergence of a dynamic domestic opportunity, as the EV component value chain becomes a central pillar in India’s industrial and clean mobility ambitions, a statement said.

Vinayak Walimbe, Managing Director, Customized Energy Solutions, said, "India’s EV momentum is unmatched, powered by innovation and collaboration. Strengthening domestic supply chains will be central to our clean mobility success."

The culmination of this week’s industry dialogue took place at India Energy Storage Week (IESW) 2026 on Friday. The three-day event was organised by the India Energy Storage Alliance (IESA) at Yashobhoomi (IICC), New Delhi.

The summit brought together over 200 exhibitors and more than 10,000 industry leaders for policy discussion, technical exchange, and major announcements set to define India’s clean energy transition.

Dr Ian Martinus, Investment and Trade Commissioner, India-Gulf, Government of Western Australia said, "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 future of electric mobility and industrial-scale storage will be defined by what nations achieve together, not alone."

The CES report highlights how battery packs will account for more than half of the component market in 2025, with motors, inverters, and power electronics also playing significant roles.

As original equipment manufacturers (OEMs) increase drivetrain integration and Indian industry leaders invest in advanced subsystems, the share of motors, inverters, and battery management systems (BMS) within the component market is set to rise rapidly.

However, the report also warns that battery packs and inverters remain the most import-dependent segments of the value chain, together representing nearly 60 percent of an EV’s cost structure, while motors and BMS are localising faster due to their software-driven and lower capital intensity characteristics.

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Avanthika Satheesh, Director, Consulting, CES, said in the statement, "India’s EV component market surge signals our readiness to lead in technology and manufacturing. Strategic investments now will secure India’s place in the global EV value chain.

The report underlines that the Indian EV component market is poised to grow at a compound annual growth rate (CAGR) of 38 percent between 2025 and 2032, far outpacing global averages.

The incremental opportunity of Rs 3.14 lakh crore over this period will disproportionately reward domestic firms that invest in R&D, manufacturing capability, and supply chain resilience.

According to the report, the future of India’s EV sector depends not only on increased sales but also on building robust technology ownership, local supply chains, and intellectual property that can anchor the nation’s mobility landscape for the next decade.

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