Anil Ambani-led Reliance Infrastructure is reportedly preparing to venture into the electric vehicle (EV) sector with plans to manufacture electric cars and batteries. The move signals the company's interest in tapping into the rapidly growing EV market.
Reliance Infrastructure is actively seeking partnerships, including with Chinese companies, to bring its EV plans to life. According to a Reuters report, the company is expected to finalize its strategies within the next few months.
To spearhead the project, Reliance Infrastructure has enlisted former BYD India executive Sanjay Gopalakrishnan as a consultant. Gopalakrishnan, who retired from BYD this year, played a pivotal role in establishing the Chinese electric vehicle major’s passenger vehicle business in India, launching multiple EV models, and setting up a dealership network.
Exploring Cost Feasibility for EV Production
The company has moreover locked in outside experts to conduct a fetched achievability ponder for setting up an electric vehicle fabricating plant. The proposed plant could have an initial production capacity of 2.5 lakh vehicles per year, with potential to scale up to 7.5 lakh units in the future.
In expansion to vehicle generation, Dependence Framework is investigating the possibility of setting up a 10 GWh (gigawatt hours) battery plant, with plans to extend capacity to 75 GWh over the another decade. This aligns with the company’s broader ambitions in the EV space.
To support its foray into the automotive industry, Reliance Infrastructure has reportedly floated two new wholly-owned subsidiaries. One of them, Reliance EV Private Ltd, aims to manufacture and deal in various types of vehicles and components, utilizing different fuel types.
Financial Challenges Ahead
Despite these ambitious plans, questions remain about how Reliance Infrastructure will finance its entry into the EV market. The company has faced significant debt and cash flow challenges in recent years, raising concerns about its ability to fund such a large-scale venture.
If successful, Anil Ambani's venture would place him in direct competition with his brother Mukesh Ambani, whose Reliance Industries recently secured production-linked incentives (PLI) to establish a 10 GWh battery cell production facility. Reliance Infrastructure will also compete against established players like Tata Motors, Maruti Suzuki, and global giants such as MG Motor and BYD in the Indian EV market.
The Indian electric vehicle division is seeing quick appropriation and is anticipated to gotten to be a $114 billion showcase by 2029. Reliance Infrastructure’s entry could further intensify competition in this growing industry.
With inputs from agencies
Image Source: Multiple agencies
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