India’s battery and energy storage sector is entering a phase of rapid expansion, with electric mobility, grid-scale storage, domestic manufacturing and automation expected to drive the next leg of growth, industry leaders said at a roundtable in Pune ahead of The Battery Show India 2026.
The EV Trajectory: From Subsidies to Commercial TCO Parity
India’s electric transition is rapidly moving past two- and three-wheelers into high-volume commercial and passenger applications. Analysts highlighted that fleet economics and national policy are fundamentally reshaping demand.
Speaking at the roundtable discussion Prajyot Sathe, Research Director – Mobility – Electric Vehicles, Frost & Sullivan said, “India’s electric vehicle market has evolved significantly over the past decade, with the country moving from a nascent market in 2015–16 to a market supported by stronger government initiatives, regulations and policy backing. Within the EV ecosystem, we see a clear progression from electric two-wheelers to three-wheelers and light commercial vehicles, followed by electric buses, while passenger cars are developing at a later stage. In calendar year 2025, India’s battery electric passenger car market stood at around 178,000 units, compared with approximately 99,000 units in 2024, and we expect it to reach around 180,000–190,000 units in 2026. Looking further ahead, we expect annual passenger EV sales to reach about 1.5 million units by 2032.
The next phase will be shaped by advanced battery systems, supply-chain localisation and interoperable charging infrastructure. LFP has emerged as the dominant chemistry, while sodium-ion, lithium-sulphur and solid-state batteries are being explored for the next four to six years, Sathe further added.
Reinforcing the systemic nature of this shift, market research firm 1lattice pointed out that adoption signals are transitioning from consumer incentives to total cost of ownership (TCO) dynamics across national infrastructure.
Suyog Keluskar, Senior Director, 1Lattice, said, “India is entering a new phase in its energy transition, one where batteries move from being a vehicle story to a national infrastructure story. The market signal is clear: one in eight vehicles retailed in August 2026 was electric, and electric commercial vehicles more than doubled their share to 5.18% in a year. That shows fleets are now buying on total cost of ownership, not subsidies.”
“The bigger shift is happening beyond the showroom. Industry estimates point to advanced cell demand growing nearly tenfold about 28 GWh in 2025 to around 272 GWh by FY30, while the grid alone will need 236 GWh of battery storage by FY32. Yet domestic cell output is still close to 1 Gwh. Closing this gap is the defining opportunity of the decade,” he added.
Grid-Scale Storage & Decarbonisation: Scaling to Gigawatt Hours
As renewable penetration accelerates, stationary battery energy storage systems (BESS) are emerging as critical pillars for round-the-clock power and grid stability. Storage manufacturers highlighted aggressive expansion plans to capture massive domestic and international demand.
Hiren Shah, Managing Director & CEO, Replus Engitech, said, “Replus is a technology-driven battery manufacturing company focused on grid-scale and C&I energy storage. We manufacture containerised BESS starting from 5 MWh in a 20-foot container and are currently deploying 1.2 GWh across FDRE, round-the-clock power, solar-plus-storage, standalone BESS and transmission and distribution applications. Our C&I portfolio includes DG-replacement systems from 100 kW/260 kWh to 500 kW/1 MWh, along with specialised battery packs for data centres, residential applications and EVs. Our current plant capacity is 1 GWh and is being scaled to 6 GWh, with the additional facility expected to be operational from January 2027.
India has significant opportunities across grid-scale, C&I and EV battery applications, with projected demand over the next decade of around 480 GWh, 380–400 GWh and 420 GWh respectively. As renewable penetration rises, BESS will become increasingly important for grid stabilisation, power quality and demand management. Solar-plus-BESS tariffs at around Rs 4.8 per unit versus Rs 8.5 for grid power also support the shift towards clean energy. Our business is expected to grow from around Rs 1,800 crore this year to Rs 4,500 crore next year and cross Rs 8,000 crore by 2029, supported by capacity expansion and overseas operations targeting the Middle East, Africa and Europe.”
Manufacturing Automation & Supply Chain Self-Reliance
Achieving cost parity and safety standards requires advanced domestic automation across cell, module, and pack manufacturing lines. Automation leaders noted that indigenous manufacturing is key to driving down line setup costs.
Manoj Patil, Chairman & Managing Director, Patil Automation Ltd. said “Patil Automation provides complete automation solutions for battery manufacturing, including fully automated lines for cells, modules and packs. As demand grows across two-wheelers, three-wheelers, four-wheelers, buses, trucks and battery energy storage systems, Made in India is helping reduce line and manufacturing costs. Around 30–35% of smaller battery components are already made in India and this share is expected to reach 70–80% in the coming years, driving demand for higher automation and multiple production lines.”
Alongside production automation, testing equipment, power conversion systems (PCS), and energy management software (EMS) form the core of domestic self-reliance, reducing external supply dependencies.
Prashant Kharade, Chief Operating Officer, Ador Digatron, said “While Ador Digatron operates across the energy sector, we are proud to be an e-mobility company supporting India’s transition to cleaner energy. Our portfolio spans hydrogen power supplies and rectifiers for hydrogen production, EV charging solutions under our Quench brand, and battery technologies. We have been in the battery business since 1996, supporting leading companies with battery formation and testing circuits and have transitioned from lead-acid to lithium-ion technologies over the last four to five years. We now manufacture chargers, formation and testing circuits for lithium-ion batteries.
Pune: The Epicentre of India’s Mobility Transformation
The choice of Pune for this industry dialogue underscores the city’s preeminent standing in India’s automotive sector. According to the Maharashtra Industrial Development Corporation (MIDC), the Pimpri-Chinchwad belt houses over 4,000 automotive and ancillary units alongside premier R&D, testing, and certification centres. Under Maharashtra’s EV Policy 2025, Pune is slated to anchor Centres of Excellence for EVs, charging infra, hydrogen tech, and strategic EV battery recycling hubs.
Rajneesh Khattar, Senior Group Director, Informa Markets in India, said, “India’s electric mobility market is moving into a phase where the scale of adoption is increasingly shaping the requirements for a stronger domestic battery ecosystem. The country recorded nearly 1.97 million EV registrations in FY2024–25, with electric two-wheelers alone accounting for about 1.15 million registrations. This momentum makes it increasingly important to build capabilities not just in vehicle manufacturing, but across cells, battery management systems, power electronics, testing, safety, recycling and energy storage.”
India’s Battery, Energy Storage Sector Set for Rapid Growth: Industry Leaders
