India’s electric vehicle (EV) components market is anticipated to witness substantial growth, with projections estimating it will expand eightfold to approximately ₹3.55 lakh crore by 2032, up from ₹41,000 crore in 2025, as per a recent industry report.
This outlook is detailed in the ‘India Electric Vehicle & Components Market Overview Report’ released by the India Energy Storage Alliance and Customized Energy Solutions (CES) during the India Energy Storage Week 2026 event held in New Delhi.
The report indicates a burgeoning domestic market opportunity, positioning the EV component value chain as a fundamental element of India’s industrial and clean mobility goals, as stated in their announcement.
Vinayak Walimbe, Managing Director of Customized Energy Solutions, remarked, “India’s EV momentum is unmatched, powered by innovation and collaboration. Strengthening domestic supply chains will be central to our clean mobility success.”
The recent industry dialogue concluded at the India Energy Storage Week (IESW) 2026, a three-day event organized by the India Energy Storage Alliance (IESA) at Yashobhoomi (IICC) in New Delhi. The summit saw participation from over 200 exhibitors and more than 10,000 industry leaders, engaging in policy discussions, technical exchanges, and significant announcements aimed at shaping India’s transition to clean energy.
Dr. Ian Martinus, Investment and Trade Commissioner, India-Gulf, Government of Western Australia, expressed, “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 that battery packs are expected to constitute over half of the components market by 2025, with motors, inverters, and power electronics also playing pivotal roles.
As original equipment manufacturers (OEMs) enhance drivetrain integration and Indian industry leaders invest in advanced subsystems, the contribution of motors, inverters, and battery management systems (BMS) to the components market is likely to increase rapidly.
However, the report cautions that battery packs and inverters remain heavily reliant on imports, together accounting for nearly 60% of an EV’s overall cost structure, while motors and BMS are localizing more quickly due to their software-driven nature and lower capital intensity.
Avanthika Satheesh, Director of Consulting at CES, stated, “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.”
According to the report, the Indian EV component market is projected to grow at a compound annual growth rate (CAGR) of 38% from 2025 to 2032, significantly surpassing global averages.
The additional opportunity of ₹3.14 lakh crore during this period is expected to favor domestic companies that invest in research and development, manufacturing capabilities, and supply chain resilience.
The future trajectory of India’s EV sector hinges not only on rising sales but also on establishing strong technology ownership, local supply chains, and intellectual property that will anchor the nation’s mobility framework for the next decade.
