Tata Motors, India's leading electric car manufacturer, is leveraging locally produced EV batteries to maintain its competitive edge amid rising competition from new launches.
According to Reuters, P.B. Balaji, Tata Motors' group CFO, said that the Tata Group's initial investment of US$1.5 billion to establish a battery gigafactory in India aims to enhance supply chain integration. He emphasized that Tata will become a dominant player in India's EV market as a vertically integrated manufacturer.
In June 2024, Tata Sons revealed its plan to set up advanced battery manufacturing plants in Sanand, India, and the UK, each having a specific GWh production capacity. The battery venture, Agratas, will specialize in battery designs and production for the automotive and energy sectors, with initial clients including Tata Group companies Jaguar Land Rover (JLR) and Tata Motors. The company also aims to expand its battery portfolio to encompass two-wheelers, commercial vehicles, and energy storage solutions.
Reuters reported that Agratas plans to begin lithium-ion cell production in 2026, with full production anticipated by 2028. Notably, Tata's competitors in India's EV market lack an integrated supply chain and must procure batteries and other components from market suppliers.
Meanwhile, India is actively promoting its battery supply chain for self-reliance. Business Standard reported that the India Energy Storage Alliance (IESA) anticipates an investment of US$500 million in the Indian battery and mobility startup ecosystem within a year. This investment is expected to spur innovation, research, and development among these startups, facilitating their product advancements.
India's EV market is quickly growing, albeit from a low base. Autocar Professional, citing data from Vahan, reported that in the full year of 2024, India's passenger vehicle segment saw its highest-ever annual sales of EVs, reaching 99,004 units, a 20% increase compared to the previous year. Since 2015, approximately 250,000 electric passenger vehicles have been sold in India. However, despite an additional 16,441 units sold in 2024, increased competition has reduced Tata Motors' market share to its lowest point in three years.
Source: Autocar Professional; compiled by DIGITIMES Asia, January 2025