India's Reliance Infra weighs EV push, taps ex-BYD exec, sources say

Reliance Infrastructure

06/09/2024 10:56

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      Hires consultants for cost feasibility study, sources say
    

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      Eyes plant will initial capacity of 250,000 EVs, source
says
    

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      Hires ex-BYD India head Gopalakrishnan as adviser, sources
says
    

  
    By Aditi Shah
       NEW DELHI, Sept 6 (Reuters) - India's Reliance
Infrastructure  RLIN.NS  is considering plans to manufacture
electric cars and batteries, and has hired the former India head
at China's BYD Co  002594.SZ  to advise on its plans, two
sources briefed on the matter told Reuters.
    The company, part of Anil Ambani's Reliance Group, has hired
external consultants to conduct a "cost feasibility" study for
setting up an EV plant with an initial capacity of about 250,000
vehicles a year, to be scaled up to 750,000 over some years, the
first source said.
    It is also looking at the feasibility of building a battery
plant starting with 10 gigawatt hours (GWh) of capacity and
scaling up over a decade, the person added.
    Reliance Infrastructure did not respond to a request for
comment on its plans, which are being reported for the first
time.
    Former BYD executive Sanjay Gopalakrishnan, who has joined
as a consultant to advise on the EV project, did not respond to
a request for comment.
    Anil Ambani is the younger brother of Mukesh Ambani, Asia's
richest man and head of Reliance Industries  RELI.NS , which has
interests ranging from oil and gas to telecoms and retail. The
brothers split the family business in 2005.
    Mukesh's company is already working to locally manufacture
batteries and this week won a bid to receive government
incentives for 10 GWh of battery cell production. 
    If Anil's group decides to press ahead with its plans, the
brothers will go head-on in a market where EVs have a niche
presence but are growing fast.
    Electric models made up less than 2% of the 4.2 million cars
sold in India last year, but the government wants to grow this
to 30% by 2030. It has budgeted over $5 billion in incentives
for companies locally manufacturing EVs and their components,
including batteries.
    Battery making is yet to take-off in India but some local
manufacturers like Exide  EXID.NS  and Amara Raja  AMAR.NS  have
tied-up with Chinese players for technology to manufacture
lithium-ion battery cells in the country.
    Reliance Infrastructure is also looking for partners,
including Chinese companies, and is aiming to finalise its plans
within a few months, the first source said.
    India's Tata Motors  TAMO.NS  is the country's largest EV
player with a nearly 70% share of the market, with rivals like
SAIC's  600104.SS  MG Motor and BYD gaining pace. Overall auto
market leaders Maruti Suzuki  MRTI.NS  and Hyundai Motor
 005380.KS  plan to launch EVs in 2025.
    Gopalakrishnan retired from BYD this year after spending
more than two years there, setting up BYD's India business,
launching three EVs, and establishing a dealership network. 
    Government records reviewed by Reuters show Reliance
Infrastructure in June formed two new wholly-owned subsidiaries
related to autos. 
    One is named Reliance EV Private Ltd, whose "main objective"
is to "manufacture, deal, in vehicles of every description and
components for transport and conveyance using any nature of
fuel".

 (Reporting by Aditi Shah
Editing by Mark Potter)
 ((aditi.shah@tr.com; +91-11-4954 8023, +91-11-3015 8023;
Reuters Messaging: twitter: @aditishahsays))