Market Potential

The market for lithium-ion batteries in India is expected to grow at a CAGR of 12. 47% during the forecast period. The market value of 2019 is
USD 1. 89 billion and the estimated market value for the year 2026 is USD 4
The increasing supply of raw materials, along with the continued deduction in the price of batteries, will have a positive impact on the growing
demand of the market.
The sharp fall in the price of li-ion batteries and the exceptional benefits offered by the li-ion batteries, such as fast charging, lightweight,
compact size, and longer life span, will attract many end-users to opt for vehicles using these batteries rather than other types of batteries.
The demand for lithium in India is driven by the nation’s vision to become one of the largest markets for the manufacturing of electronic goods
which are linked to the creation of lithium-ion batteries especially in smartphones and electric vehicles.
Tata Chemicals has started work on its lithium-ion cell manufacturing project. This is expected to aid the growth of the market.

The Indian lithium-ion battery market is partially fragmented. Some of the major companies include Exicom Tele-Systems Limited, Samsung SDI
Co, Panasonic Corporation, Tata Chemicals Ltd., and Nexcharge Inc.
The rising environmental concerns, followed by the increasing number of government initiatives to reduce carbon emission by incentivizing
electric vehicles, are the significant factors contributing to the growth of the India Electric Vehicle Battery Market
The India Electric Vehicle Battery Market is estimated to touch USD 963 million by the end of 2026, growing at a CAGR of 25.3% during 2019-
2026.
Reports project that Indian EV market will grow at a CAGR of 36 percent till 2026. 
Top 3 players in EV battery production

Tata
Chemicals

LI Ion Exide
Battery

Amaron
 Tata Chemicals
• India’s global company, • In India Exide batteries are
tata chemicals along with
tata motors started
production of EV
batteries. They are
manufacturing lithium ion
batteries and they are
using these batteries for
all EV segment cars and
their upcoming car
models as well.
Exide industries: Amar Raja Batteries
• Amar Raja batteries is well
well known because of their known for its Amaron
strong presence in two batteries. These are well
wheeler and 4 wheeler known as they are used in
market. The performance home inventor batteries and
and the quality of the in bykes. These are well
service they provide make used in rural and tier 2 cities
them top among the rest. as well.
 Sales revenue and market cap data
Amara Raja Batteries Exide Industries TATA Chemicals

Market cap – Rs 14354 Cr Market cap – Rs 15508 Cr Market cap – Rs 18954 Cr

Company PE – 24.2 Company PE – 21.1 Company PE – 35

Operating profit margin – 16% Operating profit margin – 10-11% Operating profit margin – 18%

Sales growth (3yr) – 9% Sales growth (3yr) – 9% Sales growth (3yr) – 0%

Promoter holding – 28.06% Promoter holding – 45.99% Promoter holding – 37.98%

ROE – 18.60% ROE – 13% ROE – 7.39%

 Observations of 3 top players in EV battery production
• We see that Tata’s market cap and highest PE ratio which means that the market is willing to pay
for the companies profits. This could be because of the established brand of TATA
• However we see that there is no sales growth for TATA from the last 3 years unlike other
companies
• We see that the promoters holding is the highest for Exide which means that the company is
managed well as promoters hold a good share of stake in this company which can help the
company to be managed well
• Since the ROE of Amara raja is the highest, it means that the management had great ability to
generate income from the equity available to it
Segmentation by Component Chemistry

• Lithium Nickel Manganese Cobalt (LI-NMC)

• Lithium Iron Phosphate (LFP)
• Lithium Cobalt Oxide (LCO)
• Lithium Titanate Oxide (LTO)
• Lithium Manganese Oxide (LMO)
• Lithium Nickel Cobalt Aluminum Oxide (NCA)
 By Component
• Cathode
• Anode
• Separators
• Electrolytes
• Aluminum foil
• Copper foil
• Others

We can supply key ingredient materials to customers who wish to indigenously develop and co-create Lithium ion battery
By Application Consumer Electronics
•Smartphones
Energy Storage
Industrial
• Military
•Laptops
• Industrial Equipment
•UPS Systems
• Medical
•Smart Cameras
• Marine
•Smart Watches
• Telecommunication
•Smart Glasses
• Forklifts
•Smart Textiles
• Mining
•Activity Trackers
• Others
•Others
Automotive
•Hybrid Electric Vehicles
•Battery Electric Vehicles
By Region
• North America
• US
• Canada
• Mexico
• Europe
• UK
• Germany
• France
• Rest of Europe
• APAC
• China
• Japan
• South Korea
• India
• Rest of APAC
• RoW
• South America
• Middle East & Africa
By Voltage:
• Low (Below 12 V)
• Medium ( 12 V – 36 V)
• High (Above 36 V)

By Power Capacity:
• 0 TO 3,000 mAH
• 3,000 TO 10,000 mAH
These Segments will cross play among each other and thus we should
• 10,000 TO 60,000 mAH
create a exhaustive feasible Segment portfolio to cater effectively to the
• More Than 60,000 mAH
needs of the market.
KEY ISSUES TO BE ADDRESSED:
• Lack of Charging Infrastructure: (Environment Forces effecting Organizational Buying by EV manufacturers)
Since EV battery units are consumables which needs charging, India would be needing a widespread charging infrastructure to support the growing
demand. Obviously the onus of this sizeable investment related to making the charging infrastructure easily accessible needs to come from either
the government or through a consortium of the EV manufacturers. The issue is compounded by the fact that there is dearth of space in urban India
to accommodate the charging vehicles in the stations.

One of the ways in which this can be addressed is coming up with battery swapping and battery-as-a-service model which essentially involves
servitization of the EV battery unit product to a on-demand service that allow users to swap/change EV batteries once discharged. This would do
away with the problem of constraints related to charging infra, space and would also save time – thus improving overall customer satisfaction.
• Total Cost of Ownership: TCO
One of the foremost concern after the “range anxiety” is the cost/price premium or the Total Cost of Ownership. Although the OEMs are the buyers
but this becomes a major issue; as the TCO is passed onto the actual users of the EV. Although TCO of EV battery units is much less than that of
ICE vehicles, a major portion of TCO is formed by the aftersales servicing of EV battery units which is much more complex than ICE vehicles

OEMs can capitalize on the aftersales credentials by partnering with existing third party mechanics or garages
• Need of Education as means of Promoting EV batteries (SAVE model of Marketing)
Since the OEMs are the customers for the EV battery units, manufacturers needs to adopt the SAVE model of
marketing focusing more on the solutions offered, how with growing demand the charging stations can be made
easily accessible, what would be the values obtained from EV which would counter the relatively initial high
price like drastically reduced carbon footprint targeted at environment conscious manufacturers like Tesla, and
finally educating the manufacturer firms about the technicalities and features and how they map to benefits
such as service range.

• Relationship Building : OEMs need to build a recognizable EV dedicated brand that can leverage the existing
customer base and the ability access the markets across the world.
References:
https://www.globenewswire.com/news-release/2021/03/22/2196800/0/en/India-Lithium-Ion-Battery-Market-
Growth-Trends-COVID-19-Impact-and-Forecasts-2021-2026.

https://arablelife.com/list-of-electric-vehicle-battery-manufacturers-in-india/

https://www.india-briefing.com/news/electric-vehicle-industry-in-india-why-foreign-investors-should-pay-attention

https://niti.gov.in/writereaddata/files/document_publication/EV_report.pdf
https://www.grandviewresearch.com/industry-analysis/lithium-ion-battery-market
https://www.gminsights.com/industry-analysis/lithium-ion-battery-market
https://www.marketsandmarkets.com/Market-Reports/lithium-ion-battery-market-49714593.html
https://www.gmiresearch.com/report/india-electric-vehicle-battery-market/