Tata Motors flags bottlenecks in procurement of battery cells as EV sales boom

Tata Motors Ltd has flagged bottlenecks in its electric vehicle (EV) supply chain amid a significant increase in demand, with shortages of some imported materials, particularly battery cells, affecting supplies.

“We have seen bottlenecks in the EV supply chain because of a significant increase in demand, and we are facing a shortfall in some of the imported materials, especially cells, which is a long lead-time commodity,” Girish Wagh, MD & CEO of Tata Motors, said during the post-earnings media conference call.

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The commercial vehicle manufacturer said battery cells require advance planning and ordering because of their long lead times. “We need to place orders in advance,” Wagh said.

Tata Motors said it has already taken measures to address the supply constraints and expects the EV supply chain to be largely debottlenecked toward the end of the second quarter.

“We have taken actions with which, towards the end of Q2, we will see the EV supply chain getting de-bottlenecked,” said Wagh.

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These comments come as demand for electric vehicles continues to rise, putting pressure on the availability of key components and highlighting the importance of securing supplies ahead of production requirements.

India’s lithium-ion cell imports surged 64% year-on-year to Rs 41,667 crore in FY26, according to commerce ministry data. Imports of lithium-ion cells have gone up fivefold over the past five years.

Tata Motors reported consolidated revenue of ₹20.7K crore in Q1 FY27, up 19% year-on-year. EBITDA margin stood at 10.9%, down 90 basis points, while profit after tax rose 83% to ₹2.6K crore.

The Tata group’s commercial vehicle company is also progressing on its proposed Iveco transaction, with regulatory approvals in the final stage. Tata Motors said only one approval from Spain remains pending.