India automotive traction battery market to see growth

The Indian automotive manufacture is undergoing a transformative phase, driven by expanding request for vigor businesslike interior combustion motor (ICE) vehicles and electrical vehicles (EVs), and the request for sustainable proscription solutions. However, this modulation is not without its challenges, arsenic the manufacture grapples with rising costs of indispensable components and minerals. Despite these challenges, the Indian traction artillery marketplace is poised for maturation implicit the adjacent 5 years, says GlobalData, a starring quality and productivity platform.

According to GlobalData estimates, the Indian precocious xEV artillery marketplace is expected to grow astatine a compound yearly maturation complaint (CAGR) of 25.7% implicit 2026-2030.

Gorantala Sravan Kumar, Associate Project Manager - Automotive astatine GlobalData, comments: “The government's propulsion for electrical mobility, coupled with expanding user consciousness and request for sustainable proscription is expected to thrust maturation successful the Indian traction artillery market.”

Recent information from the Society of Indian Automobile Manufacturers (SIAM) highlights a important displacement successful the marketplace dynamics. While rider conveyance accumulation has surged by 25.5% year-on-year successful 2025, the manufacture faces a “clean environment” premium, with the costs of exhaust-cleansing and battery-grade minerals escalating rapidly. Platinum, rhodium, and palladium prices person seen unprecedented hikes, with platinum unsocial expanding by 110% successful 2025 compared to the erstwhile year.

The traction artillery market, a captious constituent for EVs, is witnessing a akin trend. The terms of cobalt oxide has surged by 209% year-on-year, and refined cobalt has climbed by 146%. Lithium carbonate, indispensable for rechargeable powerfulness cells, has besides seen a 10% increase.

Sravan Kumar continues: “Stakeholders successful the manufacture request to absorption connected securing a unchangeable and low-cost proviso of indispensable minerals and components. Collaborative efforts betwixt the authorities and manufacture players to make section proviso chains and trim dependency connected imports volition beryllium important for sustaining the momentum of the EV transition.”

Sravan Kumar concludes: “The Indian Automotive Component manufacture is astatine a crossroads, balancing short-term outgo pressures with semipermanent structural transformation. The surge successful commodity and semiconductor costs has already begun to erode margins—especially for EV producers, whose outgo vulnerability is concentrated successful batteries and high-tech components.

“While macroeconomic conditions and geopolitical dynamics stay uncertain, and challenges successful constituent sourcing and rising costs, car constituent makers and OEMs that enactment decisively to power worldly costs, optimize designs, and heighten proviso concatenation resilience whitethorn look with stronger competitory positioning successful the marketplace of 2026 and beyond.”