Reliance Infrastructure explores electric vehicle manufacturing, hiring

Reliance Infrastructure considering setting up electric vehicle plant with capacity of 250,000 units

Potential electric car and battery factories

Reliance Infrastructure is conducting a “cost feasibility” study to determine the feasibility of setting up an electric vehicle production facility. Initial plans suggest an annual production capacity of 250,000 units, which can be expanded to 750,000 units in a few years. In addition to electric vehicles, the company is also evaluating the feasibility of setting up a battery plant. The proposed plant will have a starting capacity of 10 gigawatt-hours (GWh) and can be expanded to 75 GWh in a decade, thus addressing a critical gap in India’s electric vehicle supply chain.

The plans come as the Indian government announced ambitious goals to increase penetration of electric vehicles in the country. Currently, electric vehicles account for less than 2% of the 4.2 million cars sold in India each year. However, the government aims to increase this figure to 30% by 2030 and has offered more than $5 billion in incentives to companies involved in local electric vehicle and battery production.

Industry landscape and competition

Anil Ambani’s Reliance Group’s entry into electric vehicles could put it in direct competition with Mukesh Ambani’s Reliance Industries. Mukesh’s company has received government support for local battery production and is working towards a first phase of 10 gigawatt-hour capacity. The potential competition between the Ambani brothers, who split up the family business in 2005, could soon extend to the growing electric vehicle market.

Gopalakrishnan’s role and market potential

As the electric vehicle market in India gradually expands, Reliance Infrastructure is seeking partners, including with Chinese companies, to strengthen its position in the field. The company expects to complete its plans in the coming months, but funding remains an open question. Reliance Infrastructure has faced significant financial challenges in recent years, including high debt and cash flow constraints.

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