Reliance Infrastructure Announces EV and Battery Manufacturing Plans, Appoints Ex-BYD Executive

Anil Ambani’s Reliance Infrastructure is gearing up to enter the electric vehicle (EV) and battery manufacturing sectors, having recently hired former BYD executive Sanjay Gopalakrishnan to lead its strategic planning, according to Reuters.

The company is preparing to launch a significant new venture that includes setting up an EV manufacturing plant with an initial capacity of 250,000 vehicles per year, which will be scaled up to 750,000 units in the coming years. Additionally, Reliance Infrastructure is exploring the feasibility of establishing a battery plant with a starting capacity of 10 gigawatt-hours (GWh), which could expand to 75 GWh over the next decade.

Reliance Infrastructure is in the process of finalizing its plans and is actively seeking partners, including potential collaborations with Chinese firms. The company is also engaging external consultants to assess the cost feasibility of these ambitious projects.

Currently, Tata Motors dominates India’s EV market with a nearly 70 percent share, while competitors like SAIC, MG Motor, and BYD are increasing their presence. Maruti Suzuki and Hyundai Motor are set to launch their EVs by 2025. Despite electric vehicles accounting for less than 2 percent of the 4.2 million cars sold in India last year, the government aims to increase this figure to 30 percent by 2030, allocating over $5 billion in incentives for local EV and battery manufacturing.

Mukesh Ambani’s Reliance Industries is already advancing in the battery sector, having secured government incentives for 10 GWh of battery cell production. If Anil Ambani’s group moves forward with its plans, the Ambani brothers will compete directly in a rapidly growing EV market.

Local manufacturers such as Exide and Amara Raja have begun partnerships with Chinese firms to access technology for lithium-ion battery cells, which could further influence the development of domestic battery production.

Reuters also reported that in June, Reliance Infrastructure established two new wholly-owned subsidiaries related to automotive manufacturing. One of these, Reliance EV Private Ltd, is focused on producing and dealing in various types of vehicles and components.

However, Reliance Infrastructure faces challenges with high debt levels and cash flow issues, leaving the funding for its EV and battery projects uncertain.

ET