Reliance Infrastructure, owned by Anil Ambani, is allegedly preparing to take on his brother Mukesh Ambani by joining the EV (electric vehicle) market. A Reuters article claims that the business has brought in former BYD CEO Sanjay Gopalakrishnan as a consultant to help with its efforts to produce electric vehicles and batteries. This action prepares the Ambani brothers for a possible head-to-head rivalry in one of India’s fastest-growing industries.
A cost-feasibility study for the construction of an EV factory with an initial capacity of 250,000 vehicles annually—which may eventually grow up to 750,000—is being carried out by Reliance Infrastructure. According to individuals who spoke to Reuters, the corporation is also looking into the viability of opening a battery production facility. Its initial capacity would be 10 GWh, and over the next ten years, it would grow to 75 GWh.
Shares of Reliance Infrastructure increased by about 2% after Reuters broke the story, despite the fact that the business has not responded to the claim and Business Today is unable to independently confirm the development. If approved, the proposal will put Anil Ambani’s company in direct rivalry with Reliance Industries, owned by Mukesh Ambani, who is already developing local battery production and has obtained government subsidies for the manufacture of 10 GWh of battery cells.
Less than 2% of the 4.2 million automobiles sold in India last year were electric vehicles, indicating the relative youth of the country’s EV sector. The government does, however, want to increase this to 30% by 2030 and is providing incentives worth over $5 billion to encourage local production of EVs and batteries. This market potential offers Reliance Infrastructure a bright future, especially in light of the increased interest from big automakers like Tata Motors, Maruti Suzuki, and Hyundai.
Reliance Infrastructure has established two further companies, one of which is Reliance EV Private Ltd, with the aim of producing and marketing automobiles and their components. In order to complete its EV goals in the upcoming months, the business is aggressively looking for partners, particularly Chinese companies.
Reliance Infrastructure is making its move into electric cars at a time when it is facing financial difficulties, such as excessive debt and cash flow problems. How the business intends to finance the massive EV initiative is yet unknown. But with a former BYD executive on board and the chance to take advantage of government subsidies, Anil Ambani may be setting up his business for a significant resurgence in the quickly expanding EV market.
