Indian billionaire investor Rakesh Jhunjhunwala is betting on carmaker Tata Motors as one of the winners of India’s growing electric vehicle market.
“I think the best and best electric car player in India will be Tata Motors,” Jhunjhunwala told CNBC’s “Street Signs Asia” on Tuesday.
“I am a big shareholder in Tata Motors. I am reproducing the history of EV through Tata Motors,” the investor said.
He explained that the valuation will not ultimately decide who will win the electric vehicle race. In contrast, large companies with manufacturing and investment capabilities, distribution channels, production experience and the ability to design good cars will eventually come out ahead, according to Jhunjhunwala.
“I think it will be the Mercedes, the Volkswagens and the Tata Motors, who will be the real winners of the electric race,” he said, adding that another factor needed to succeed in India is to be able to customize cars to to the conditions of Indian roads, for example, the ability to drive these cars on flooded roads.
India is also a cost-conscious market where the use of electric vehicles will likely depend on the type of incentives the government gives, the investor explained. Infrastructure, such as charging stations, has yet to be built for widespread adoption. But, Jhunjhunwala said, India is “prepared like any developing country, but I think the pace of readiness will increase like anything else.”
Both Tata Motors and competitor Mahindra & Mahindra are already selling electric vehicles. US electric vehicle giant Tesla is reportedly preparing to open an electric car manufacturing unit in southern India.
Tata Motors signage will be displayed at the company’s headquarters in Mumbai, India on January 27, 2018.
Dhiraj Singh | Bloomberg | Getty Images
Diversified financial services firm Motilal Oswal told CNBC this month that the excitement of India’s electric vehicle market comes from ancillary spaces such as battery manufacturing.
Among carmakers, the company said it prefers Maruti Suzuki, India’s largest vehicle manufacturer, because of its strong distribution network, although Maruti herself is not yet as optimistic about it. electric vehicles.
India is trying to reduce its dependence on oil and improve its air quality. This is likely to drive electric vehicles.
Reuters reported last year that India has possible plans to offer $ 4.6 billion in incentives to companies installing advanced battery manufacturing facilities as part of their efforts to promote vehicle use electric. The country previously approved a scheme to subsidize the sale of electric and hybrid vehicles.
In this month’s annual budget for the fiscal year beginning April 1, India announced a voluntary policy of scrapping vehicles to phase out old vehicles that contribute to the poor quality of the vehicle. country air.