India automotive sector posts strong July sales, battery demand rise

India's automotive retail sales rose 28.6% year‑on‑year in the first 23 days of July, with two‑wheelers up 31%, passenger vehicles up 20.6% driven by SUV demand, commercial vehicles up 27.3%, three‑wheelers up 18.1% and tractors up 36.8%. The surge is attributed to a low base, steady consumer sentiment, recent model launches, strong electric‑vehicle adoption, softer interest rates and GST rationalisation, and analysts expect continued growth through the second half of fiscal year 2026‑27.

A separate report projects that demand for advanced‑chemistry battery cells in India will expand at a 39% compound annual growth rate between 2025 and 2030, with EV battery demand forecast at 35% CAGR and battery‑energy‑storage systems at 78% CAGR. The government’s Rs 18,100 crore Production Linked Incentive scheme targets 50 GWh of domestic cell capacity, and more than ten manufacturers have announced about 178 GWh of capacity. The National Critical Mineral Mission aims to boost domestic supply of lithium, nickel, cobalt and graphite to support this growth.