Well, Mukesh Ambani’s Reliance Industries Ltd (RIL) seems to be also eyeing the electric vehicle (EV) space in India after it recently was in talks to buy a majority stake in MG Motor India, and will Reliance’s entry take four-wheeler EVs to the common man?
It may be mentioned that Reliance had played disruptor in the Indian mobile phone market during mid-2003 by handing over a cellphone to everyone on payment of a meagre Rs 501.
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| MG Motor India's Gloster, which is priced from Rs 38 lakh (Rs 38,00,000) onwards, is yet to become a popular car in India -- Photo: Talking Trendo. |
Also, by rolling out Jio, Reliance has taken the Internet to almost every doorstep in India.
MG had recently launched India’s cheapest EV — the Comet — for less than Rs 8 lakh (Rs 800,000). This car, it hopes, will sell well but will India accept a micro car again after snubbing the Tata Nano?
The electric motor of the MG Comet belts out a maximum power of 42 PS and a peak torque of 110 Nm.
MG unveils India plans
In the recent past, MG Motor India had unveiled its five-year plan, which includes setting up a second manufacturing facility in Gujarat.
The carmaker had also revealed that it would dilute its stake in the Indian unit soon.
Reliance, Hero & others evince interest in MG
Recent reports suggested that Reliance and the Hero Group may be vying with each other for a major stake in MG Motor India.
Two other conglomerates in the fray for an equity stake buy in MG include the JSW Group as well as Premji Invest.
Reports state that MG is looking to finalise the deal by the end of this year. This dilution, and eventually a takeover, is set to happen in a phased manner.
MG production ramp up, new cars
MG was recently in the news when it said that it will ramp up its production capacity to 3 lakh units.
The once-British carmaker, currently owned by China’s SAIC Motor, has lined up 4-5 new models for India’s market, and a majority of these are set to be electric vehicles.
Roadblock to MG Motor India’s funding
MG had been making all out efforts to raise funds from parent SAIC Motor for the last couple of years.
However, Chinese firms (including SAIC) have been facing roadblocks in getting the Indian government’s approvals on various matters in the wake of the border clashes that have been going on.
MG’s plan on cell production, hydrogen tech
MG plans to scale up its EV portfolio in India by over 70 per cent in the next few years.
The company wants to further get into cell production and hydrogen fuel technology in a big way. This it plans to do via partnerships or third parties.
E-Vroooom’s views
MG getting into green tech in a big way gels well with RIL’s strategy of clean fuel production.
And, if RIL forays into cell production, it will also be seamless with the company’s EV strategy (if it manages to grab a majority bite of MG Motor India stake).
Also, a hostile India-China relationship makes sense for MG Motor India to completely Indianise its operations (along with offloading stake).
So, RIL getting into EV production may help it take electric four-wheelers to the common man, and thus, give a major fillip to India’s EV sales, even before the numerous deadlines set in.
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