New Plant Boosts India’s Battery Production Capacity
On August 19, Octillion Power Systems officially inaugurated its third battery manufacturing plant in Halol, Gujarat, India. The facility boasts an annual production capacity of 3 GWh, capable of manufacturing over 48,000 battery systems per year. Covering more than 13,000 square meters, the plant was converted from an empty structure into a fully operational production line in less than eight months. It will supply battery systems for electric passenger vehicles, buses, and commercial trucks.
Octillion stated that the Halol plant integrates standardized production processes, thermal modeling technology, and battery management systems while deepening collaboration with the local supply chain. This approach transcends traditional assembly models, effectively reducing delivery lead times. With the new facility, Octillion’s three plants in India are expected to achieve a combined annual output of 9 GWh, producing over 150,000 battery systems and becoming a cornerstone of the local electric vehicle supply chain.
Strong Demand in India’s Electric Vehicle Market
According to JMK Research, electric vehicle sales in India reached 1.54 million units in the first half of 2026, a 43% year-on-year increase, with market penetration exceeding 11%. Sales of electric passenger cars surged by 83%, electric buses grew by 42%, and electric trucks saw a remarkable 300% increase, signaling the rapid rise of commercial electric vehicle demand.
In June 2026, the Indian government allocated over 4,200 electric buses, advancing policies such as PM E-Bus Sewa and PM E-DRIVE to further stimulate market demand. Despite this growth, research by the International Institute for Sustainable Development (IISD) indicates that the localization rate of high-value components, such as cells, motors, and controllers, remains below 20% for most electric vehicle manufacturers in India. Additionally, the country continues to rely heavily on imports for critical minerals like lithium, cobalt, and nickel, which are essential for battery production.
Localization of Supply Chain Remains a Key Challenge
Nikhil Parchure, Senior Vice President at Octillion, emphasized that building a resilient electric vehicle supply chain in India requires more than just expanding production capacity. It also demands deeper local sourcing, quality control, and the development of engineering talent aligned with global standards. The commissioning of the Halol plant is seen as a significant step toward realizing this vision. However, India’s battery industry still faces challenges related to the supply chain of critical minerals.
The Indian government’s National Critical Minerals Mission is investing in domestic exploration and processing capabilities, but reducing dependence on imports in the short term remains difficult. Industry analysts note that battery manufacturers must overcome issues such as unstable raw material supplies and the localization of technology to enhance the long-term competitiveness of India’s electric vehicle sector. Whether Octillion’s expansion will encourage more companies to invest in deep localization will be a focal point for the market.
