Government incentives
In 2022, the Indian government announced the National Programme on Advanced Chemistry Cell (ACC). It has an outlay of 181 billion Indian rupees to incentivize the establishment of ACC manufacturing facilities, amounting to 55 gigawatt-hours of production capacity. The program is especially aimed at providing energy storage capacity for the country’s growing energy consumption. ACC is a new generation of advanced energy storage technologies which can store electricity in electrochemical form. Meanwhile, government incentives for manufacturing electric vehicles (EV) and components have also provided a boost for the EV battery industry.Electric vehicle market in India
As part of the broader effort to reduce greenhouse gas emissions and combat air pollution in India, the Indian government has pushed for the adoption of electric vehicles in the country. It was estimated that by the year 2027, more than one third of vehicles sold in the country would be electric. One thing noticeable is that cars did not dominate India’s vehicle market - most of the electric vehicles sold were two and three-wheelers. The electric two-wheeler market was dominated by newcomers, instead of conventional manufacturers. The market leader Ola, a mobility service provider turned electric two-wheeler manufacturer, achieved 3.7 billion Indian rupees of revenue in the financial year 2022.
