New Delhi, June 24 -- India's goal of creating an electric vehicle (EV) battery manufacturing ecosystem is facing a potential headwind: cheap batteries from China. Domestic manufacturers such as Amara Raja Energy Mobility Ltd and Exide Industries Ltd are worried that their own batteries, which are expected to roll out of factories between this fiscal and FY27, won't be able to match the prices of the Chinese.

India-made batteries are expected to be 20-30% costlier than their Chinese counterparts due to heavy reliance on imports of raw materials, according to an industry executive working on cell supply chain at an electric two-wheeler company who spoke on condition of anonymity. Plus, analysts believe that a huge overcapacity of EV batte...