Mahindra, Hyundai Global Motors Bid For Incentives Under India’s $2.4 Billion Battery Scheme

0
215
Mahindra, Hyundai Bid For Incentives Under India's $2.4 Billion Battery Scheme

Country’s $2.4 Billion Battery Scheme Attract Direct Investment

Reliance Industries, Hyundai Global Motor Company of South Korea, and manufacturer Mahindra & Mahindra are among the companies that have made proposals for the country’s $2.4 billion battery project, according to two sources.In order to construct a domestic supply chain for clean transportation and build storage for renewable energy, India finalised an incentive package last year to encourage companies to engage in local battery manufacture.

Vission Of The Scheme

According to the sources, Softbank Group-backed Ola Electric, engineering conglomerate Larsen & Toubro, and battery manufacturers Amara Raja and Exide have also filed bids. Requests for comment were not immediately returned by any of the companies mentioned by the sources. India plans to build a total of 50 gigawatt hours (Gwh) of battery storage capacity over the next five years, with an estimated $6 billion in direct investment. Companies must install at least 5 Gwh of storage capacity and meet specific local content requirements to qualify for the incentives, which would require a minimum expenditure of more than $850 million. According to the reports, around ten companies have filed proposals totaling close to 100 Gwh. India was also enticing international corporations to invest, including Tesla Inc., Samsung, LG Energy, Northvolt, and Panasonic.

Goverments Future Plans

India’s goal for lowering pollution in major cities and reducing oil dependence includes clean auto technologies. However, electric vehicles (EVs) account for a small percentage of total sales in the country, owing to their high cost and the fact that batteries are imported. By 2030, the South Asian country wants electric cars to account for 30% of private automobile sales, with electric motorcycles and scooters accounting for 40% of such sales, fueling demand for batteries, which presently account for around 35% to 40% of overall vehicle costs.

Read More:  Upcoming 7 Seater Cars In India | New SUVs, MPV In 2022

Join Us: Facebook Whatsapp | Instagram

LEAVE A REPLY

Please enter your comment!
Please enter your name here