Tata Motors, India's biggest electric car maker, is betting that locally manufactured EV batteries will help it maintain its edge in an industry where competition is intensifying with new launches, its group CFO said in an interview.

Tata Motors Ltd. said the cost of making electric cars has been declining due to cheaper batteries, narrowing the gap with fossil-fueled vehicles which have been traditionally cheaper to manufacture.

Tata Motors aims to maintain its lead in the Indian EV market through local battery manufacturing amid rising competition. The company will invest $1.5 billion in a gigafactory to reduce reliance on external suppliers and improve its supply chain for EV components.

The global transition to electric vehicles (EVs) has ushered in a wave of innovation, competition, and collaboration in the automobile industry. In India, the Battery Electric Vehicle (BEV) market is witnessing sutained growth with Tata Motors leading the charge.