MUMBAI: Anil Ambani’s Reliance Infrastructure is exploring plans to enter the electric vehicle (EV) and battery manufacturing sector and has enlisted the expertise of Sanjay Gopalakrishnan, the former India head of China’s BYD Co, as an advisor, according to two sources familiar with the matter.
The company, part of Anil Ambani’s Reliance Group, has engaged external consultants to conduct a “cost feasibility” study for establishing an EV manufacturing plant.
The initial phase would target a production capacity of 250,000 vehicles annually, with plans to scale up to 750,000 units over time, one of the sources revealed.
Battery plant
In addition to vehicle production, Reliance Infrastructure is assessing the feasibility of building a battery plant, starting with an initial capacity of 10 gigawatt hours (GWh), with plans to expand the facility over the next decade, the source added.
Reliance Infrastructure has yet to comment on these plans, which are being reported for the first time.
Sanjay Gopalakrishnan, who is advising on the EV project, also declined to comment. Gopalakrishnan previously spent more than two years with BYD, where he established the company’s India operations, launched three EV models, and built a dealership network.
Anil Ambani, younger brother of Mukesh Ambani—Asia’s richest man and head of Reliance Industries—split from the family business in 2005.
RIL to make battery
Mukesh’s Reliance Industries has diversified into sectors such as oil, telecoms, and retail and is currently focused on local battery production.
This week, the company won a bid for government incentives to produce 10 GWh of battery cells.
If Anil Ambani’s group proceeds with its EV and battery manufacturing plans, it will position the brothers in direct competition in a fast-growing but still niche EV market in India.
While electric vehicles accounted for less than 2 per cent of the 4.2 million cars sold in India last year, the government aims to increase this to 30 per cent by 2030, offering more than $5 billion in incentives for companies producing EVs and components, including batteries.
Seeking partners
Battery manufacturing is still in its infancy in India, though domestic companies like Exide and Amara Raja have partnered with Chinese firms for lithium-ion battery technology.
Reliance Infrastructure is also seeking partners, potentially including Chinese firms, with plans to finalize its strategy within a few months, according to the first source.
Currently, Tata Motors dominates the Indian EV market with a nearly 70 per cent share, followed by competitors like SAIC’s MG Motor and BYD.
Maruti Suzuki
Major automakers such as Maruti Suzuki and Hyundai Motor are planning to launch their own EV models by 2025.
Government filings reviewed by Reuters show that in June, Reliance Infrastructure formed two new subsidiaries related to the automotive sector. One of these, Reliance EV Private Ltd, has the stated objective of manufacturing and dealing in vehicles and components for transport using various fuel types.
