India could achieve substantial localisation of electric vehicle battery cells and their underlying components within the next two to three years, with domestic cell manufacturing expected to begin within a year, according to Tata Motors Passenger Vehicles' Managing Director and CEO Shailesh Chandra.
Speaking at Autocar Professional's India EV Conclave 2026, Chandra said the country's EV supply chain was steadily becoming more localised, although battery cells and certain electronic components continued to depend on imports.
"I think two to three years down the line we will be heavily localised," Chandra said during a panel discussion on scaling India's EV market.
He explained that several components used in battery packs, including cooling plates and busbars, were already being manufactured domestically. However, battery cells, which store the energy used to power electric vehicles, remain a major area of import dependence.
"What is not localised is cell. Within one year the cell manufacturing will start," Chandra said.
He added that domestic manufacturing of cathodes, anodes and their underlying active materials could develop over the next two to three years. "So cell will be localised in two to three years," he said.
The timeline is significant as India seeks to move beyond assembling battery packs using imported cells towards developing a domestic battery manufacturing ecosystem. While battery packs are increasingly assembled in India, manufacturing the cells and the materials used in them requires a more complex supply chain and substantial investments.
The Tata Group is among the companies investing in domestic cell manufacturing through its battery business, Agratas. Agratas is developing a battery cell manufacturing facility at Sanand in Gujarat, with an initial planned annual capacity of 20 GWh. The facility is expected to start operations in 2027.
In September 2026, Agratas announced the arrival of its first process equipment at the Sanand facility, marking a transition from construction towards manufacturing readiness. The company said equipment installation, commissioning and preparations for operations would form the next phase of the project.
The push towards localisation also comes as India continues to rely heavily on imported battery cells despite government incentives for domestic manufacturing. The government has allocated Rs 18,100 crore under the Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) battery storage, targeting 50 GWh of domestic manufacturing capacity.
Of this, 40 GWh has been awarded to four companies, including Ola Cell Technologies, Reliance New Energy Battery Storage and ACC Energy Storage. However, as of March 2026, only 1 GWh of installed capacity had been reported under the scheme, entirely attributable to Ola Cell Technologies.
The ministry acknowledged that domestic battery demand continued to be met largely through imports.
Chandra said India's approach to localisation would need to account for China's advantages in manufacturing scale and vertical integration. China has built an extensive supply chain covering battery materials, cells, components and finished vehicles, giving its manufacturers a strong competitive position.
However, Chandra believes India could use its relative advantages in electricity and labour costs to become more competitive as domestic manufacturing capacity expands.
He also highlighted the progress made in localising power electronics, another critical part of an electric vehicle's powertrain. While India has developed manufacturing capabilities for several components, including printed circuit boards, deeper localisation remains a challenge.
Chandra cautioned that manufacturing or assembling a component domestically should not necessarily be treated as complete localisation, as several underlying parts may still be imported.
"When you go to semiconductor level or even the resistors which all go in making the PCB, you are still importing it and I think that might still remain as an imported bit," he said.
The dependence on imports is also expected to continue further upstream in the battery supply chain, particularly for lithium and other critical minerals.
Chandra said India would need to learn from countries such as the United States and Japan, which are pursuing strategies to secure access to critical raw materials through overseas investments and acquisitions.
He argued that securing raw material sources would be necessary even as India builds domestic capabilities in battery cells and related components.
The push towards deeper localisation is expected to become increasingly important as India's electric vehicle market expands and manufacturers seek greater control over costs and supply chains.
Chandra said the combination of domestic manufacturing, lower labour and electricity costs, and a more developed supplier ecosystem could improve India's ability to compete with established global EV manufacturing centres over the next two to three years.