The Maruti Suzuki chairman says the absence of local battery cell production is the biggest barrier to scaling EVs, warning of overreliance on costly imports and China’s control over critical raw materials.
No Battery Cells, No Mass EVs
RC Bhargava, Chairman of Maruti Suzuki India Ltd (MSIL), has identified a critical roadblock in India’s electric vehicle (EV) journey — the absence of domestic battery cell manufacturing. Speaking at Maruti’s Hansalpur plant after the launch of the e-Vitara for exports, Bhargava was blunt:
“Nobody is making battery cells in India. That is one of the problems of EVs today.”
- While Indian firms are assembling or packaging imported cells, there is no actual cell production taking place within the country.
- This leaves EV makers reliant on expensive imports, pushing up costs and reducing the appeal of EVs for domestic consumers.
Cost Barrier: ₹20,000 Crore for a Cell Plant
Setting up a battery cell manufacturing plant isn’t cheap. Bhargava said it could require capital investment of up to ₹20,000 crore, in addition to securing hard-to-source critical raw materials like lithium, cobalt, and nickel.
- “If I am importing the batteries, it is costly. Even packaging cells gives a 15% advantage — and we are not even doing that yet,” he noted.
- He pointed out that raw material security is a serious concern, suggesting joint ventures with Chinese firms may be necessary to ensure steady supply.
“It’s possible to ensure raw material supply by partnering with a Chinese company and giving it a majority stake. But no one has done it so far,” Bhargava said.
China’s Dominance a Stark Reality
China controls over 85% of global battery cell production and processes more than 90% of rare-earth magnets used in electric motors. That dominance has become a strategic vulnerability for EV manufacturers worldwide.
- Since April 2025, China has restricted exports of rare-earth magnets, sending shockwaves through India’s EV supply chain.
- While Chinese officials, including Foreign Minister Wang Yi, have verbally assured India of easing some export restrictions, the supply risk remains.
MSIL’s EV Strategy: Cautious and Calculated
Though Maruti has launched its first electric car, the e-Vitara, Bhargava admitted the company won’t make a big difference in the EV market until battery cell supply is secured.
- “We will be one of the EV suppliers in India. Everyone said we missed the bus. So, we ran and caught it,” he said candidly.
- When asked about the delay in e-Vitara’s Indian launch, Bhargava said it was about managing supply for both export and domestic dealers.
He also cautioned against committing to large-scale EV production without a local battery solution:
“Personally, I would be hesitant about making a large commitment on the domestic market because that would mean importing a large number of batteries.”
A Call for Indian Innovation
Bhargava’s comments included a plea to Indian scientists and researchers to develop new battery chemistries that could reduce dependence on Chinese supply chains.
- “I wish some of our Indian scientists would come up with a new chemistry and avoid this dependence on other countries,” he said.
- Until then, Bhargava believes mass-market EV adoption in India will remain limited by cost, supply, and technology access.
Final Outlook: EV Ambitions Hinge on Cell Localization
India’s EV future — and its global competitiveness — now hinges on building battery cell infrastructure. Without it, companies like Maruti Suzuki may struggle to scale production, and India risks falling behind in the global EV race despite policy incentives and demand potential.
