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Indian Electric Vehicle Component Market Research Report: Two-Wheeler (Scooters, Motorcycle), Three-Wheeler (E-Rickshaw, E-Auto, Retrofitted Rickshaw), Passenger Car, Commercial Vehicle – Industry Analysis and Growth Forecast to 2030

  • Published: May 2020
  • Report Code: AT12020
  • Available Format: PDF
  • Pages: 191

Three-Wheelers are Largest Vehicle Type in Indian Electric Vehicle Component Market

Valued at $536.1 million in 2019, the Indian electric vehicle component market is expected to witness a CAGR of 22.1% during the forecast period (2020–2030). The key factors driving the industry in the country are the increasing purchase of electric vehicles (EVs) and declining price of components.

Indian Electric Vehicle Component Market

Segmentation Analysis of Indian Electric Vehicle Component Market

The three-wheeler category held the largest share in the Indian electric vehicle component market, under segmentation by vehicle type, in 2019. This is attributed to the heavy uptake of e-rickshaws, for which India is the largest market across the globe. On average, an e-rickshaw is driven for around 100 km every day, which results in high wear and tear, thereby creating a high demand for the replacement of various components.

During the historical period (2014–2019), the scooter bifurcation, based on two-wheeler vehicle type, dominated the market. This is because, compared to motorcycles, scooters are more cost-effective, which is why they account for higher sales. This, in turn, results in the higher procurement rate of various components for e-scooters, in comparison to e-motorcycles.

The aftermarket bifurcation, under the three-wheeler end-use segment, would observe faster growth in the Indian electric vehicle component market during the forecast period. This is attributed to the rising number of such automobiles undergoing part replacement, which has led to the emergence of aftermarket firms, who would account for a wider procurement of various components than original equipment manufacturers (OEMs).

Till 2030, the battery pack classification, on the basis of passenger car component, is predicted to continue generating the highest revenue in the Indian electric vehicle component market. This is because the battery pack is one of the most important as well as the most expensive component of an electric passenger car. In addition, with the projected decline in the battery pack cost, from $230 per kilowatt-hour (kWh) in 2019 to $160 per kWh by 2030, the replacement and purchase rates of this component would increase.

In 2019, the battery cell division, based on commercial vehicle battery pack, made the largest revenue contribution to the Indian electric vehicle component market, as it is the basic working unit of a battery pack. This is where the energy is stored and supplied from, via the action of charging and discharging, respectively.

Uttar Pradesh dominated the market during the historical period, as it accounts for the highest procurement and replacement rates of the parts for electric two- and three-wheelers, which are among the most widely sold EVs in the country.

Preference for High-Battery-Capacity EVs Is Trending in the Market

The key trend in the Indian electric vehicle component market is the increasing demand for EVs with a higher battery capacity. In the past, batteries with lower capacity were in higher demand, owing to the preference for cost-effective electric two-wheelers and three-wheelers, which mostly have such energy storage devices. However, in the last few years, the demand for high-power e-rickshaws and two-wheelers, as well as electric cars and commercial vehicles has risen sharply, which can travel for longer distances on a full charge. Moreover, owing to the implementation of the Goods and Services Tax (GST) and entry of organized players in the domain, including Amara Raja Batteries Ltd. and Exide Industries Ltd., the integration rate of high-power batteries in EVs is projected to surge in the country.

Rapid Sale of EVs Is Driving the Growth of the Market

The most important growth driver for the Indian electric vehicle component market is the rising sale of EVs. In 2019, the country witnessed a sale of 447.7 thousand electric three-wheelers, 32.4 thousand electric two-wheelers, and 2,000 electric passenger cars, thereby creating a high demand for various components. The surge in EV adoption is itself a result of the supportive government policies and swift degradation in the quality of the air. Almost 40% of the total carbon emissions are contributed by the transport sector, which has led to the implementation of stringent emission-control laws and supportive measures for the uptake of EVs in the nation. Under the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) scheme, Government of India aims to replace 30% of the country’s automobiles with electric variants, by 2030.

Indian Electric Vehicle Component Market

Rising Component Replacement Rate Offers Vast Growth Potential to the Market

A key opportunity which the players in the Indian electric vehicle component market can leverage is the increasing replacement rate of various EV parts. For instance, more than 70% of the total e-rickshaw components sold in 2019 were replacement batteries, compared to just 28.0% in 2014. The rapidly increasing penetration of e-rickshaws has already boosted the business of aftermarket companies by a significant margin. By 2024, over 4 million e-rickshaws are expected to be on the roads, which would create an additional demand for replacement and OEM parts, as will the rising procurement rate of other types of EVs.

Market Players Engaging in Product Launches to Gain Larger Revenue Share

In recent years, the Indian electric vehicle component market has witnessed a number of product launches, as the players are focusing on expanding their business, with the rising demand for EVs.

For instance, in January 2020, a new series of hydraulic shocker '43' -31 mm was launched by CY International, for electric three-wheeler loader rickshaws. The shocker, which can handle a 1,000–1,500 kg load, comes with a warranty of 12 months.

On similar lines, in February 2018, Greaves Cotton Ltd., which manufactures EV engines, unveiled two new powertrain solutions at Auto Expo 2018. Additionally, the company also showcased E3, a concept three-wheeler driven by this new powertrain, which comprises fewer moving parts and a lightweight battery.

The major companies in the Indian electric vehicle component market are Exide Industries Ltd., Amara Raja Batteries Ltd., Eastman Auto & Power Ltd., Okaya Power Pvt. Ltd., Sparco Batteries Pvt. Ltd., Panasonic Corp., Robert Bosch GmbH, Contemporary Amperex Technology Co. Ltd., CY International, and DENSO CORP.

Market Size Breakdown by Segment

The Indian electric vehicle component market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.

Two-Wheeler Market Segmentation

  • By Component
    • Battery
      • Lithium-ion
      • Lead–acid
    • Motor
      • Brushed motor
      • Brushless direct current (BLDC) motor
    • Controller
    • Charging Kit
  • By Vehicle Type
    • Scooters
    • Motorcycle     
  • By End Use
    • Original Equipment Manufacturer (OEM)
    • Aftermarket   
  • By State
    • Uttar Pradesh
    • Haryana
    • Gujarat
    • Maharashtra
    • West Bengal
    • Rajasthan
    • Tamil Nadu
    • Delhi
    • Andhra Pradesh
    • Kerala
    • Karnataka
    • Uttarakhand
    • Madhya Pradesh
    • Rest of India   

Three-Wheeler Market Segmentation

  • By Component
    • Battery
      • Lithium-ion
      • Lead–acid
    • Motor
      • Brushed motor
      • BLDC motor
    • Controller
    • Charging kit
  • By Vehicle Type
    • E-Rickshaw
    • E-Auto
    • Retrofitted Rickshaw 
  • By End Use
    • OEM
    • Aftermarket   
  • By State
    • Madhya Pradesh
    • Uttar Pradesh
    • Delhi
    • West Bengal
    • Rajasthan
    • Bihar
    • Haryana
    • Chhattisgarh
    • Uttarakhand
    • Punjab
    • Jharkhand
    • Assam
    • Tripura
    • Rest of India

Passenger Car Market Segmentation

  • By Component
    • Battery Pack
      • Battery cell
      • Battery management system (BMS)
      • Battery thermal management system
    • Motor
    • Controller
    • Electric Vehicle Supply Equipment (EVSE)
    • DC–DC Converter
    • High-Voltage Cable
    • Power Distribution Module (PDM)
    • Thermal Management System
    • Vehicle Interface Control Module (VCIM)
  • By State
    • Maharashtra
    • Gujarat
    • Delhi
    • Karnataka
    • Tamil Nadu
    • Kerala
    • Telangana
    • Uttar Pradesh
    • Haryana
    • Rest of India

Commercial Vehicle Market Segmentation

  • By Component
    • Battery Pack
      • Battery cell
      • BMS
      • Battery thermal management system
    • Motor
    • Controller
    • EVSE
    • DC–DC Converter
    • High-Voltage Cable
    • PDM
    • Thermal Management System
    • VCIM
  • By State
    • Delhi
    • Maharashtra
    • Karnataka
    • Rest of India
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