Anil Ambani vs Mukesh Ambani? Report claims RInfra eyeing EV market, setting stage for sibling showdown

Anil Ambani’s Reliance Infrastructure is reportedly gearing up to challenge his brother Mukesh Ambani by entering the electric vehicle (EV) market. The company, according to a Reuters report, has hired former BYD executive Sanjay Gopalakrishnan as a consultant to advise on its plans to manufacture electric cars and batteries. 

The move sets the stage for a potential head-to-head competition between the Ambani brothers in one of India’s fastest-growing sectors.

Reliance Infrastructure is conducting a cost feasibility study for building an EV plant with an initial capacity of 250,000 vehicles a year, which could later scale up to 750,000. The company is also exploring the feasibility of setting up a battery manufacturing plant, starting with 10 GWh capacity and expanding to 75 GWh over the next decade, sources told Reuters.

While the company has not commented on the report, and Business Today cannot independently verify the development, shares of Reliance Infrastructure rose by nearly 2% after Reuters reported the news.

The project, if greenlit, 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 secured government incentives for 10 GWh of battery cell production.

India’s EV market is still in its infancy, with electric vehicles making up less than 2% of the 4.2 million cars sold last year. However, the government aims to grow this to 30% by 2030, offering over $5 billion in incentives for local manufacturing of EVs and batteries. This market potential, combined with growing interest from major auto players like Tata Motors, Maruti Suzuki, and Hyundai, presents a promising opportunity for Reliance Infrastructure.

Reliance Infrastructure has also formed two new subsidiaries, including Reliance EV Private Ltd, with the objective of manufacturing and dealing in vehicles and components. The company is actively seeking partners, including Chinese firms, to finalise its EV plans in the coming months.

The foray into electric vehicles comes at a time when Reliance Infrastructure has been grappling with financial challenges, including high debt and cash flow issues. It remains unclear how the company plans to fund the ambitious EV project. However, with a former BYD executive on board and the potential to tap into government incentives, Anil Ambani could be positioning his company for a major comeback in the rapidly growing EV space.