India’s electric vehicle and battery manufacturing sector is attracting investment across cell factories, vehicle production, charging networks and stationary energy storage. Tata Group’s Agratas, Amara Raja, Exide, Ola and Reliance are developing manufacturing capabilities that could reduce dependence on imported battery cells.
The opportunity extends beyond electric mobility. India’s National Electricity Plan projects battery energy storage requirements of 236 GWh by 2031–32, creating another potential customer base for domestic manufacturers. However, announced capacity, installed equipment and commercial production represent different stages of investment.
₹18,100 Crore Battery Scheme Supports Domestic Manufacturing
India’s Advanced Chemistry Cell battery manufacturing programme has an outlay of ₹18,100 crore, targeting 50 GWh of domestic manufacturing capacity.
A February 2026 government update reported that 40 GWh had been awarded to four beneficiaries. Their cumulative investment reached ₹3,237 crore, generating 1,118 jobs, through December 31, 2025.
The same update showed a substantial gap between awarded and installed capacity:
At that reporting point, installed capacity represented 2.5 percent of awarded capacity, calculated from the government’s figures. No beneficiary had claimed an incentive under the scheme.
Separately, at least 10 manufacturers outside the scheme’s applicants had announced approximately 178 GWh of cumulative capacity over five years. These announcements indicate manufacturing ambitions rather than confirmed production.
Tata’s Agratas Advances Sanand Battery Project
Agratas, Tata Group’s battery business, is developing a 20 GWh first-phase facility at Sanand, Gujarat.
On September 16, 2026, the company reported the arrival of its first process equipment, marking progress towards installation and operational readiness. The milestone moves the project closer to manufacturing, although equipment delivery does not establish commercial output.
The next measures of progress will be commissioning, customer qualification and production ramp-up. For suppliers, the project creates potential demand for materials, factory automation, testing equipment and thermal-management systems.
Amara Raja Adds ₹500 Crore Qualification Plant
Amara Raja’s Telangana battery manufacturing programme involves a planned ₹9,500 crore investment and a 16 GWh manufacturing ambition.
In July 2026, the company commissioned a ₹500 crore Customer Qualification Plant with initial capacity of 60 MWh and a workforce exceeding 100 employees. The facility forms part of cumulative Phase 1 investment of more than ₹1,500 crore.
The plant produces cylindrical and prismatic cells across multiple chemistries for customer testing and approval. Amara Raja targeted customer-validation supplies from August 2026, ahead of its first 2 GWh commercial cell facility, scheduled for production in 2027.
This intermediate manufacturing stage addresses a practical barrier: automakers require evidence of safety, durability and consistent performance before approving cells for vehicles.
Amara Raja also has an established stationary-storage customer base. In April 2026, it reported more than 1 GWh of cumulative lithium energy storage deployment across approximately 50,000 telecom sites in India. That deployment figure is separate from its planned cell-manufacturing capacity.
Exide Plans 12 GWh Across Two Phases
Exide Energy Solutions is developing a lithium-ion cell manufacturing facility with planned capacity of 12 GWh, divided into two 6 GWh phases.
The project adds another major domestic manufacturing platform serving electric mobility and energy storage. Its phased structure allows capacity to expand as production processes and customer demand develop.
For Exide and other cell manufacturers, the decisive figures will be saleable output, manufacturing yields, customer approvals and factory utilisation. Nameplate capacity alone cannot demonstrate competitive battery production.
Mahindra’s ₹15,000 Crore Plan Covers Multiple Manufacturing Projects
Mahindra announced a ₹15,000 crore investment commitment over ten years across manufacturing initiatives in Maharashtra.
Its proposed Nagpur complex will occupy 1,500 acres, supported by a 150-acre supplier park in Sambhajinagar. Production is expected to begin in 2028.
Once fully operational, the Nagpur facility is designed for annual capacity exceeding 500,000 vehicles and 100,000 tractors. It will support internal-combustion vehicles, EVs and future powertrain technologies.
Mahindra’s investment commitment covers land and capacity expansion in the Igatpuri–Nashik region. Consequently, the full ₹15,000 crore should not be presented as EV-only spending or investment exclusively in the Nagpur plant.
Grid Storage Creates a 236 GWh Demand Opportunity
India’s battery energy storage requirements broaden the market beyond vehicle batteries.
The National Electricity Plan projects:
| Period | Battery storage power capacity | Energy capacity |
| 2026–27 | 8.68 GW | 34 GWh |
| 2031–32 | 47.24 GW | 236 GWh |
Estimated investment for the projected 2031–32 battery storage requirement is approximately ₹3.49 lakh crore. The government also reported viability gap funding support for 43.8 GWh of battery storage capacity. These are planning and support figures, rather than commissioned installations.
In July 2026, the Ministry of Heavy Industries invited bids for 10 GWh of additional ACC manufacturing capacity. The published timetable set October 13 for bid submission and October 14 for opening. The government has earmarked 10 GWh within the ACC programme for grid-scale stationary storage.
₹2,000 Crore Charging Allocation Supports EV Infrastructure
The ₹10,900 crore PM E-DRIVE electric mobility scheme includes ₹2,000 crore for public charging infrastructure.
Its original approved proposal envisaged 72,300 fast chargers: 22,100 for electric four-wheelers, 1,800 for electric buses and 48,400 for electric two- and three-wheelers. It also allocated ₹780 crore to modernise vehicle testing agencies. These allocations and proposed deployments should be distinguished from completed installations.
Charging investment creates business opportunities in electrical equipment, installation, software, maintenance and fleet depots. Commercial performance will depend on charger uptime, electricity costs and energy sold per location.
Factory Execution Will Determine India’s Battery Growth
India’s EV and battery investment pipeline now spans cell qualification, gigafactory construction, flexible vehicle manufacturing and grid storage.
The strongest evidence of progress will come from factories producing approved cells consistently, manufacturers securing repeat orders and charging operators increasing utilisation. Those achievements will determine how much of India’s announced investment becomes a competitive domestic supply chain.
SHAFANA FAZAL
