Reliance Infrastructure considering to set up EV plant with 2,50,000 capacity
India’s Reliance Infrastructure, part of Anil Ambani’s Reliance Group, is evaluating entry into the electric vehicle and battery manufacturing sectors, according to sources briefed on the matter. The company has reportedly brought in Sanjay Gopalakrishnan, a former India executive at China’s EV giant BYD Co, as a consultant to provide guidance on the potential venture.
Potential EV and Battery Plants
Reliance Infrastructure is conducting a “cost feasibility” study to determine the viability of establishing an EV production facility. The initial plan suggests an annual capacity of 2,50,000 vehicles, with scalability to 7,50,000 over several years. In addition to EVs, the company is assessing the feasibility of setting up a battery plant. The proposed facility would start with a capacity of 10 gigawatt hours GWh and could expand to 75 GWh over a decade, addressing a critical gap in India’s EV supply chain.
These plans come at a time when the Indian government has announced ambitious targets to increase EV penetration in the country. Currently, electric models constitute less than 2% of the 4.2 million cars sold annually in India. However, the government aims to raise this figure to 30% by 2030, and has allocated over $5 billion in incentives for companies involved in local EV and battery production.
Industry Landscape and Competition
Should Reliance Infrastructure proceed with its EV venture, it will face competition from major players such as Tata Motors, the market leader in India’s EV sector with a 70% share. Other competitors include MG Motor, BYD and upcoming EV models from auto industry leaders Maruti Suzuki and Hyundai, who plan to launch electric vehicles in 2025.
The entry of Anil Ambani’s Reliance Group into the EV sector could set up direct competition with Mukesh Ambani’s Reliance Industries. Mukesh’s company has already secured government incentives for local battery cell production and is working towards a 10 GWh capacity in its first phase. The potential rivalry between the Ambani brothers, who split the family business in 2005, may soon extend into the growing EV market.
Gopalakrishnan’s Role and Market Potential
Sanjay Gopalakrishnan, who joined as a consultant to guide the EV project, previously led BYD’s electric passenger vehicle operations in India. During his tenure, he oversaw the launch of three EV models and helped establish a dealership network for BYD in the country. His experience is expected to play a pivotal role in shaping Reliance Infrastructure’s EV strategy, should the company move forward with its plans.
As India’s EV market gradually expands, Reliance Infrastructure is seeking partnerships, including with Chinese companies, to solidify its position in this space. The company is expected to finalise its plans in the coming months, though funding remains an open question. Reliance Infrastructure has faced significant financial challenges in recent years, including high debt and cash flow constraints.
