Domestic EV Component Market Projected to Reach ₹3.55 Lakh Crore by 2032: Report

India’s electric vehicle components market is projected to expand significantly over the next seven years, rising from a baseline valuation of ₹41 thousand crore in 2025 to ₹3.55 lakh crore by 2032. According to the "India Electric Vehicle & Components Market Overview Report," jointly published by the India Energy Storage Alliance and Customized Energy Solutions at the India Energy Storage Week 2026 conference in New Delhi, the sector is poised to maintain a compound annual growth rate of 38 per cent over the forecast period.

The report indicates an incremental market opportunity worth 3.14 lakh crore rupees through 2032, driven by increased drivetrain integration by original equipment manufacturers and greater subsystem investments from domestic suppliers. Major engineering and component manufacturers, including Bharat Forge, Bosch India, Uno Minda, and Tata AutoComp, are currently scaling up technical investments in advanced electric vehicle sub-assemblies. However, researchers noted that manufacturing scale and internal technology depth remain uneven across the wider domestic supply network.

The analysis highlights that battery packs will continue to represent more than half of the total component market value, though traction motors, inverters, and power electronics are also expanding their shares. Currently, battery packs and power inverters constitute the highest import-dependent segments, accounting for approximately 60 per cent of an electric vehicle's total cost structure. Conversely, motor assemblies and battery management systems are experiencing accelerated localization timelines due to lower capital expenditure requirements and a heavy reliance on software engineering.

Vinayak Walimbe, Managing Director at Customized Energy Solutions, stated that strengthening internal manufacturing corridors will remain essential to sustaining clean mobility initiatives.