Synergy Steels Celebrates India's EV Push- Stainless Steel Sector Eyes Major Growth as India's EV Journey Accelerates from 7% to 35% Sales by 2030

SMPL
New Delhi [India], February 7: The anticipated increase in India's adoption of electric vehicles (EV), with EV sales forecasted to reach 30-35% of annual vehicle sales by FY30, according to SBI Capital Markets (SBICAPS), creates a large window of opportunity for the stainless steel industry. The significant increase from less than 1% EV penetration in 2019 to 7.4% in 2024 indicates a paradigm shift that will create a significant market for specialized stainless steel applications in the automotive industry.
The shift towards electric mobility is, thus, a turning point in automotive manufacturing, with batteries and electronic drive units constituting 50% of an EV's cost. This transition is creating new opportunities for stainless steel applications across the EV value chain, from battery enclosures to structural components and charging infrastructure to reduce the overall lifecycle cost of the components.
Subhash Kathuria, Chairman of Synergy Steels, said, "The EV revolution marks a defining moment for India's stainless steel industry. The distinct characteristics of stainless steel and its underlying function in EV manufacturing are anchored by high corrosion resistance and a high strength-to-weight ratio, as well as its structural role in battery protection systems. As India moves towards domestic battery production through initiatives like the PLI scheme for Advanced Chemistry Cell (ACC), we anticipate a substantial increase in demand for specialized stainless steel grades. The industry is particularly excited about the growth prospects in battery enclosures, thermal management systems, and charging infrastructure, where stainless steel's durability and safety characteristics are paramount. This will also propel the share of the automobiles, railways and transport sector in stainless steel applications which is currently expected to be 9% by 2030."
The government's Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell manufacturing is expected to catalyze domestic battery production, with original equipment manufacturers claiming to reduce battery outsourcing from 75% to 50% by FY30. According to S&P Global, EV lithium battery production in India will surge from 4 gigawatt hours (GWh) in 2023 to nearly 139 GWh by 2035. This localization of the EV supply chain presents significant opportunities for the stainless steel sector to develop specialized products for battery manufacturing and related infrastructure.
Looking ahead, as India positions itself to leapfrog traditional automotive technologies, the stainless-steel industry is preparing for increased demand across the EV ecosystem. The sector's role in supporting this transition, from providing materials for charging infrastructure to critical battery components, underscores its importance in India's clean mobility future.
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