Battery localisation becomes mandatory for Indian EV makers

Indian electric vehicle makers can no longer treat battery localisation as a choice. That's the message from a recent ET Auto report, which states plainly: battery localisation is no longer optional.

The shift marks a turning point for the sector. For years, many EV companies relied on imported cells and packs, mainly from China. That approach kept costs low and timelines short. But it also left the industry exposed to supply chain disruptions and currency swings.

Now, localisation is being pushed as a strategic need. The report doesn't mince words. It says the days of simply assembling imported batteries are over.

Why the change?

Several factors are at play. Global battery prices have been volatile. Shipping costs have spiked. And the Indian government has been nudging manufacturers to build domestic capacity through schemes like the Production Linked Incentive (PLI) for advanced chemistry cells.

But the ET Auto piece doesn't dwell on policy details. It focuses on the bottom line: EV makers who don't localise risk losing cost competitiveness and market share.

Localisation means more than just assembling cells into packs. It involves setting up cell manufacturing, sourcing raw materials, and developing a local supply chain for components like cathodes, anodes, and separators. That's a tall order. It requires heavy investment and technical know-how.

Some Indian companies have already started. Ola Electric, for instance, has been working on its own cell production. Tata Motors has announced plans for local battery packs. But the scale is still small compared to the demand.

The road ahead

The report doesn't offer a timeline or specific targets. It simply states the reality: localisation is no longer a nice-to-have. It's a must.

For EV makers, the choice is clear. Either build local battery capabilities or risk being left behind. The ones who move fast will likely gain an edge. Those who wait may find themselves squeezed out.

It's a big shift for an industry that's still finding its feet. But as the ET Auto headline puts it, battery localisation is no longer optional.