India automotive traction battery market to see growth

Core Insights - The Indian automotive industry is experiencing a transformative phase driven by the demand for energy-efficient internal combustion engine (ICE) vehicles and electric vehicles (EVs) alongside the need for sustainable transportation solutions [1] - The Indian advanced xEV battery market is projected to grow at a compound annual growth rate (CAGR) of 25.7% from 2026 to 2030 [2] Market Dynamics - The government's push for electric mobility and increasing consumer awareness are expected to drive growth in the Indian traction battery market [3] - Passenger vehicle production surged by 25.5% year-on-year in 2025, but the industry faces rising costs due to a "clean environment" premium [3] - Prices of essential minerals have escalated, with platinum increasing by 110%, cobalt oxide by 209%, refined cobalt by 146%, and lithium carbonate by 10% year-on-year [3][4] Industry Challenges - Stakeholders need to secure a stable and low-cost supply of essential minerals and components, with collaborative efforts between the government and industry crucial for developing local supply chains [5] - The Indian Automotive Component industry is at a crossroads, balancing short-term cost pressures with long-term structural transformation, as rising commodity and semiconductor costs are eroding margins, particularly for EV producers [5] Future Outlook - Despite uncertain macroeconomic conditions and geopolitical dynamics, auto component makers and OEMs that effectively control material costs and enhance supply chain resilience may achieve stronger competitive positioning in the market by 2026 and beyond [6]