New Delhi: India plans to pitch companies like Tesla Inc.Two government sources told Reuters that Samsung and LG Energy encourage them to invest in battery manufacturing locally, as it seeks to establish a domestic supply chain for clean transportation.
India will host five road shows in countries including the United States, Germany, France, South Korea and Japan from next month. battery manufacturer To set up local production, one of the officials said.
Tesla, LG Energy and Samsung are among those invited to participate, although a representative list has yet to be confirmed. Other companies targeted include Northvolt, Panasonic and Toshiba, the official said.
The move is part of a broader $2.4 billion stimulus program to boost battery manufacturing, for which the government has started inviting investment proposals from companies.
While domestic players like Reliance Industries, Adani Group and Tata Group The official said that the interest has been shown, so far very little enthusiasm from the global people.
He said some global companies are hesitant to come without a local partner as it requires large investments and India still ranks poorly in contract enforcement.
Others are choosing to invest in larger markets such as the United States and Europe where the demand for batteries is high.
“Bringing global companies into India would be a sign of seriousness and they would also bring in good technology, quality and safety standards,” the person said.
India’s plans for the United Nations Climate Change Conference come as preparations for a meeting of nations in Glasgow next week. India sees clean auto technology as central to its strategy to cut pollution and reduce oil dependence in major cities while meeting its emissions targets.
Electric vehicles (EVs) currently make up a fraction of total sales in India, mainly due to their high cost as batteries are imported. But growth is gathering pace as the government provides incentives to automakers as well as EV buyers.
The South Asian country intends for electric cars to make up 30% of total private car sales and for electric motorcycles and scooters to make up 40% of total sales by 2030.
This is expected to increase demand for batteries that currently contribute about 35% to 40% of the total vehicle cost, but this can be reduced with local production.
Under the terms of the $2.4 billion programme, India is looking to install a total of 50 gigawatt hours (GWh) of battery storage capacity over five years, which is expected to attract direct investment of about $6 billion.
To qualify for the incentive, companies must install a minimum of 5 Gwh of storage capacity and meet certain local content conditions. This would require a minimum investment of over $850 million, the official said.
India will host five road shows in countries including the United States, Germany, France, South Korea and Japan from next month. battery manufacturer To set up local production, one of the officials said.
Tesla, LG Energy and Samsung are among those invited to participate, although a representative list has yet to be confirmed. Other companies targeted include Northvolt, Panasonic and Toshiba, the official said.
The move is part of a broader $2.4 billion stimulus program to boost battery manufacturing, for which the government has started inviting investment proposals from companies.
While domestic players like Reliance Industries, Adani Group and Tata Group The official said that the interest has been shown, so far very little enthusiasm from the global people.
He said some global companies are hesitant to come without a local partner as it requires large investments and India still ranks poorly in contract enforcement.
Others are choosing to invest in larger markets such as the United States and Europe where the demand for batteries is high.
“Bringing global companies into India would be a sign of seriousness and they would also bring in good technology, quality and safety standards,” the person said.
India’s plans for the United Nations Climate Change Conference come as preparations for a meeting of nations in Glasgow next week. India sees clean auto technology as central to its strategy to cut pollution and reduce oil dependence in major cities while meeting its emissions targets.
Electric vehicles (EVs) currently make up a fraction of total sales in India, mainly due to their high cost as batteries are imported. But growth is gathering pace as the government provides incentives to automakers as well as EV buyers.
The South Asian country intends for electric cars to make up 30% of total private car sales and for electric motorcycles and scooters to make up 40% of total sales by 2030.
This is expected to increase demand for batteries that currently contribute about 35% to 40% of the total vehicle cost, but this can be reduced with local production.
Under the terms of the $2.4 billion programme, India is looking to install a total of 50 gigawatt hours (GWh) of battery storage capacity over five years, which is expected to attract direct investment of about $6 billion.
To qualify for the incentive, companies must install a minimum of 5 Gwh of storage capacity and meet certain local content conditions. This would require a minimum investment of over $850 million, the official said.
.