3 weeks ago
Tata Motors flags battery cell supply bottlenecks amid EV boom
Tata Motors is a company that makes electric vehicles.
Those vehicles need special batteries made of cells.
Getting these battery cells takes a very long time, so the company must order them early.
Right now, many people want electric vehicles, so battery cells are hard to get.
Tata Motors says it already has a plan to fix this problem.
The company expects things to get easier by the end of the second quarter.
India is buying many more battery cells from other countries than before.
In one year, these imports went up by 64%.
Even with these challenges, Tata Motors made more money this year than last year.
The company is also finishing up approvals for a deal with Iveco.
Tata Motors flagged bottlenecks in battery cell procurement, saying the cells require advance planning and ordering because of long lead times.
The company said measures are in place and expects the EV supply chain to be largely debottlenecked toward the end of Q2.
India's lithium-ion cell imports surged 64% year-on-year to Rs 41,667 crore in FY26 and have risen fivefold over five years, per commerce ministry data.
Tata Motors reported Q1 FY27 consolidated revenue of ₹20.7K crore, up 19% year-on-year, and profit after tax up 83% to ₹2.6K crore.
Regulatory approvals for the proposed Iveco transaction are in the final stage, with only one approval from Spain still pending.
- Who
- Tata Motors, the Tata group's commercial vehicle manufacturer, with executive Wagh commenting on the supply issue.
- What
- The company flagged bottlenecks in battery cell procurement amid rising EV demand and said actions have been taken to largely debottleneck the EV supply chain by the end of Q2.
- Where
- India, where Tata Motors operates and where lithium-ion cell imports are rising sharply.
- When
- Q1 FY27, during Tata Motors' latest quarterly results announcement, which also cited FY26 import data.
- Why
- Rising demand for electric vehicles is pressuring the availability of key components, and battery cells require advance orders due to their long lead times.
Key facts
- Company
- Tata Motors (Tata group's commercial vehicle manufacturer)
- Core issue
- Battery cell procurement bottlenecks due to long lead times
- Outlook
- EV supply chain largely debottlenecked by end of Q2
- Q1 FY27 revenue
- ₹20.7K crore, up 19% year-on-year
- Q1 FY27 profit after tax
- ₹2.6K crore, up 83% year-on-year
- EBITDA margin
- 10.9%, down 90 basis points
- FY26 lithium-ion cell imports
- Rs 41,667 crore, up 64% year-on-year
- Iveco deal status
- Regulatory approvals in final stage; one approval from Spain pending
Quotes
Nikhil Wagh
Executive at Tata Motors
“"We have taken actions with which, towards the end of Q2, we will see the EV supply chain getting de-bottlenecked."”
businesstoday.in
“"We need to place orders in advance."”
businesstoday.in
Sources
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