Reliance Infrastructure Explores Electric Vehicle Manufacturing Plans

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Navi Mumbai: India’s Reliance Infrastructure is assessing the feasibility of manufacturing electric vehicles (EVs) and batteries, according to sources familiar with the matter. The company has engaged former India head of BYD Co., Sanjay Gopalakrishnan, as a consultant to advise on these plans.

Key details from the initiative include:

  • EV Production Capacity: Reliance Infrastructure is conducting a cost feasibility study for establishing an EV plant with an initial production capacity of approximately 250,000 vehicles per year, with plans to scale up to 750,000 vehicles over time.
  • Battery Manufacturing: The company is also evaluating the feasibility of building a battery production facility, starting with a capacity of 10 gigawatt hours (GWh) and expanding over the next decade.
  • Market Context: Electric vehicles accounted for less than 2% of the 4.2 million cars sold in India last year. The Indian government aims to increase this figure to 30% by 2030, committing over $5 billion in incentives for local EV manufacturing and components.
  • Industry Competition: Tata Motors currently leads the Indian EV market with a nearly 70% share. Other competitors, including SAIC’s MG Motor and BYD, are also gaining traction. Major auto manufacturers like Maruti Suzuki and Hyundai Motor are planning to introduce EVs by 2025.

Reliance Infrastructure has not provided comments regarding its plans, which are reported for the first time. Gopalakrishnan, who retired from BYD earlier this year after establishing the company’s operations in India, has not responded to requests for comment.

The company is reportedly seeking partnerships, including potential collaborations with Chinese firms, and aims to finalize its plans in the coming months. Additionally, Reliance Infrastructure recently formed two wholly-owned subsidiaries related to automotive ventures, including Reliance EV Private Ltd, which focuses on manufacturing and dealing in various types of vehicles and components.

This exploration into the EV sector marks a significant step for Reliance Infrastructure, as it positions itself within a rapidly evolving market that is increasingly supported by government initiatives and growing consumer interest.

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