India’s electric vehicle component market to grow 22% per year for a decade

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India’s electric vehicle (EV) component market will grow 22.1% annually up to 2030, from a base of $536 million (Rs4,054 crore) last year, according to U.S. market research company P&S Intelligence.

The fastest growth will be driven by demand caused by the roll-out of electric vehicles for shared transport, including by taxi aggregators such as Uber.

The P&S study predicts battery management systems for passenger car battery packs will register the highest annual growth – 61.7% – over the next decade. The management systems ensure batteries do not operate beyond safe limits and notify drivers of battery status.

The shift to electric cars follows a five-year period – 2014 to last year – during which e-rickshaws drove India’s EV component market demand. E-rickshaws are supplanting petrol-driven alternatives because of their cost-effectiveness.

The EV component market differs by state, said the P&S report, for instance the large number of electric two and three-wheelers in Uttar Pradesh has made the state the biggest buyer of EV components. Maharashtra dominates when it comes to electric car ownership and Delhi has the largest commercial EV fleet volumes, thanks to a rising number of e-buses and trucks on its streets.