India could significantly increase domestic production of electric vehicle battery cells and their underlying components over the next two to three years, with 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 India's EV supply chain was becoming increasingly localised, although battery cells and certain electronic components continued to be imported.

"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 noted that several battery pack components, including cooling plates and busbars, were already manufactured domestically. However, battery cells, which store the energy required to power EVs, remained largely import-dependent.

"What is not localised is cell. Within one year the cell manufacturing will start," he said.

Chandra further added that domestic production of cathodes, anodes and their underlying active materials could develop over the next two to three years, enabling greater localisation of battery cells.

The development is part of India's efforts to reduce dependence on imported battery cells and establish domestic manufacturing capabilities. Although battery pack assembly is increasingly being undertaken locally, producing cells and their constituent materials requires substantial investment and a wider supplier base.

The Tata Group is pursuing domestic cell manufacturing through its battery business, Agratas. The company is developing a battery cell manufacturing facility at Sanand in Gujarat, with an initial planned annual capacity of 20 GWh. Operations are expected to begin in 2027.

In September 2026, Agratas announced the arrival of the first process equipment at the Sanand facility. Equipment installation, commissioning and preparations for operations are the next stages of the project.

India continues to depend on imported battery cells despite government incentives for domestic manufacturing. Under the Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) battery storage, the government has allocated Rs. 18.1 billion (US$ 191 million) to develop 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 has acknowledged that domestic battery demand continues to be met largely through imports.

Chandra said India's localisation strategy would need to account for China's manufacturing scale and vertical integration. China has developed an extensive supply chain covering battery materials, cells, components and finished vehicles. He said India's relatively lower electricity and labour costs could help improve its manufacturing competitiveness as domestic capacity expands.

He also discussed localisation challenges in power electronics, which form part of an EV's powertrain. Although India has developed manufacturing capabilities for components such as printed circuit boards (PCBs), some underlying materials and parts continue to be imported.

Chandra said domestic manufacturing or assembly of a component should not automatically be considered complete localisation, as its constituent parts may still depend on overseas suppliers.

"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.

Import dependence 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 consider approaches adopted by countries such as the United States and Japan, which are seeking access to critical raw materials through overseas investments and acquisitions.

He further added that securing raw material supplies would remain necessary alongside developing domestic manufacturing capabilities for battery cells and related components.

As India's EV market expands, localisation is expected to remain a priority for manufacturers seeking to manage production costs and reduce supply chain dependence. Chandra said domestic manufacturing, relatively lower labour and electricity costs, and the development of local suppliers could help India compete with established global EV manufacturing centres over the next two to three years.