India’s EV dream hits wall with 97% of battery target still unfulfilled

The country commissioned only 1.4GWh out of its 50-GWh target.

India has commissioned only 1.4GWh of battery cell capacity under its Advanced Chemistry Cell Production Linked Incentive (ACC PLI) scheme, just 2.8% of the 50GWh target for 2025.

Launched in October 2021 to develop domestic lithium-ion cell manufacturing and cut import dependence, the scheme has so far delivered capacity only from Ola Electric, according to JMK Research.

Of the 40GWh allocated, Reliance New Energy is the only beneficiary to indicate that its 10GWh capacity from the second auction round will be commissioned on schedule. Capacity awarded to Reliance in the first round remains delayed.

Ola Electric, which secured 20GWh, plans to commission 5GWh by March 2026 and has deferred the remainder to FY2029. Rajesh Exports has yet to commission any capacity.

Delays are linked to visa approvals for Chinese technical staff required for equipment installation, a two-year construction deadline, and strict domestic value-addition rules that have been difficult for first-time manufacturers to meet.

Investment under the scheme stands at about $313m (₹28.7b), around 26% of the $1.23b (₹112.5b) target. Job creation totals 1,118 against projections of more than one million. No incentives have been disbursed.

Capacity allocation remains incomplete after Hyundai Global Motor withdrew from its 20GWh award in 2022. A second auction in 2024 awarded only 10GWh, leaving another 10GWh untendered.

The report also found that established battery makers Exide Industries and Amara Raja did not qualify under bidding criteria that prioritised proposed capacity, domestic sourcing targets, and subsidy benchmarks over manufacturing experience.