Anil Ambani to foray into EV market--competition for brother's firm?

Reliance Infrastructure, led by Anil Ambani, is making a push into the electric vehicle (EV) sector. The company is preparing to manufacture electric cars and batteries and is currently seeking strategic partnerships, including with Chinese firms, according to a Reuters report.

To spearhead this ambitious project, Reliance Infrastructure has enlisted Sanjay Gopalakrishnan, a former executive at BYD India, as a consultant. Mr Gopalakrishnan, who retired from BYD earlier this year, played a pivotal role in establishing the Chinese EV manufacturer's presence in India, including launching several electric vehicles and setting up a dealership network.

Plans to make 2.5 EVs a year

The company has commissioned external consultants to conduct a "cost feasibility" study for setting up an EV manufacturing plant with an initial annual production capacity of 2,50,000 vehicles. The study will also explore the possibility of scaling production to 7,50,000 units over the coming years.

In addition to vehicle manufacturing, Reliance Infrastructure is considering the establishment of a battery plant with an initial capacity of 10 GWh (gigawatt hours), potentially expanding to 75 GWh over the next decade. The company has reportedly created two new wholly-owned subsidiaries related to the automotive sector, including Reliance EV Private Ltd, which will focus on manufacturing and dealing in vehicles and their components.

Despite these developments, Reliance Infrastructure's financial stability remains a concern. The company has faced high debt and cash flow issues in recent years, raising questions about how it will fund its entry into the EV market.

Competition from Mukesh's company

This announcement comes on the heels of Reliance Industries, led by Mukesh Ambani—Anil Ambani's elder brother and Asia's richest man—securing production-linked incentives (PLIs) for a 10 GWh battery cell production unit. Mukesh's company is also working to locally manufacture batteries and has won government incentives this week to support this effort.

The Indian EV market is currently in its nascent stages, with electric models accounting for less than 2% of the 42 lakh cars sold in the country last year. However, the Indian government aims to increase this share to 30% by 2030 and has allocated over $5 billion in incentives for companies involved in the local manufacturing of EVs and their components, including batteries.

Expanding market opportunities

The Indian EV market, currently bustling with activity from major players like Tata Motors, Maruti Suzuki, MG Motor, BYD, and Hyundai Motor, is projected to be worth $114 billion by 2029. Reliance Infrastructure’s potential entry into this space, alongside local giants such as Exide and Amara Raja—who have also partnered with Chinese firms for battery technology—marks a considerable expansion in the sector.