September 7, 2024 – Anil Ambani’s Reliance Infrastructure is reportedly preparing to challenge his brother Mukesh Ambani by entering the electric vehicle (EV) market. According to a Reuters report, the company has hired former BYD executive Sanjay Gopalakrishnan as a consultant to help guide its plans to manufacture electric cars and batteries.
This strategic move could lead to a direct competition between the Ambani brothers in one of India’s most rapidly expanding sectors. Reliance Infrastructure is currently conducting a cost feasibility study for building an EV plant with an initial production capacity of 250,000 vehicles per year, which could be scaled up to 750,000 vehicles. Additionally, the company is exploring the potential of establishing a battery manufacturing plant, starting with a capacity of 10 GWh and aiming to expand to 75 GWh over the next decade, according to sources cited by Reuters.
While the company has not officially commented on the report and Business Today has not independently verified the details, shares of Reliance Infrastructure rose nearly 2% following the news. If the project proceeds, it could position Anil Ambani’s firm in direct competition with Mukesh Ambani’s Reliance Industries, which is already working on local battery manufacturing and has received government incentives for 10 GWh of battery cell production.
India’s EV market is still in its early stages, with electric vehicles comprising less than 2% of the 4.2 million cars sold last year. However, the Indian government aims to increase this figure to 30% by 2030, offering over $5 billion in incentives for local manufacturing of EVs and batteries. This growing market, combined with increased interest from major automotive players like Tata Motors, Maruti Suzuki, and Hyundai, presents a significant opportunity for Reliance Infrastructure.
To further bolster its EV ambitions, Reliance Infrastructure has established two new subsidiaries, including Reliance EV Private Ltd, with the goal of manufacturing vehicles and components. The company is actively seeking partnerships, including potential collaborations with Chinese firms, to finalize its EV plans in the coming months.
The move into the EV market comes as Reliance Infrastructure grapples with financial challenges, such as high debt and cash flow issues. It remains unclear how the company will fund the ambitious EV project. However, with industry expertise from a former BYD executive and the possibility of tapping into government incentives, Anil Ambani may be positioning his company for a significant comeback in the burgeoning EV sector.
