Tata Motors Turns to China’s Octillion for EV Batteries, Expanding Beyond Group Sources

Tata Motors is changing its approach to sourcing batteries for its electric vehicles (EVs). Instead of only buying from its group company Tata AutoComp Systems, Tata Motors will now also purchase battery packs from China’s Octillion Power Systems. This change will start with Tata’s new Curvv coupe SUV, which will use lithium-ion battery packs from Octillion. This is the first time Tata Motors is using an external battery supplier since it launched its flagship Nexon EV in 2020.

The decision to bring in a new supplier comes as Tata Motors faces challenges in the EV market. By using Octillion’s battery packs, Tata hopes to improve performance issues like the drop in battery charge that was noticed in some previous models. This move also helps Tata Motors diversify its supply chain and technology as it expands into new EV models.

Octillion set up a 2GWh battery pack capacity in Pune, India, last year. For the 45kWh version of the Curvv EV, Tata Motors has chosen Octillion’s battery packs, while the 15.2Ah cylindrical cells will come from another Chinese company, EVE. However, the larger 55kWh version of the Curvv EV will continue to use battery packs from Tata AutoComp, featuring 105Ah prismatic cells supplied by Gotion.

Previously, all battery packs for Tata Motors’ passenger EVs were made by Tata AutoComp Systems, with cells sourced from China’s Gotion. The choice between using cylindrical and prismatic cells depends on the specific needs of the battery pack design, such as energy density and thermal management.

A Tata Motors spokesperson explained that by working with multiple suppliers, the company can reduce supply chain risks and improve competitiveness. The EV market has grown rapidly, with sales rising from around 6,000 in FY21 to approximately 100,000 in FY24.

Tata Motors currently offers four passenger EVs—the Nexon, Tiago, Punch, and now the Curvv. The Tigor EV is also available in the fleet segment as the Xpres-T. Although Tata Motors has been using Octillion’s battery packs in its Starbus EV for over two years, this is the first time these packs will be used in a passenger EV.

Tata Motors began delivering the Curvv EV last week, with a waiting period of six to eight weeks. The car is built on Tata’s new EV architecture, called acti.ev (Advanced Connected Tech-Intelligent Electric Vehicle), and can offer a range of up to 585 km on a single charge with its 55kWh variant. The EV market is currently facing challenges, including a slowdown in sales and the removal of government subsidies on electric vehicles sold to commercial fleets. Tata Motors is pricing its EVs competitively to attract buyers.

In the first quarter of fiscal year 2025 (April-June), Tata Motors saw a 14% drop in EV sales, selling just 16,579 units.