One of India’s largest ports-to-power conglomerates, Adani Group, has announced its plans of entering the electric vehicle business in India. The group led by the country’s second-richest individual, Gautam Adani, recently filed a trademark for the ‘Adani’ name for EVs. According to sources and reports, the S.B. Adani Family Trust proposed the idea of entering the EV space. Reports also indicate that the company will focus on the electric commercial vehicle segment, which includes coaches, buses, and trucks.
Recent Undertakings and Future Plans
Recently, the Adani Group achieved a market cap of INR 3 lakh crore and set up a subsidiary called ANIL. Via this new subsidiary, the company will undertake green hydrogen projects, generate low carbon electricity, and manufacture renewable energy sources. These sources include wind turbines, solar modules, and batteries, along with an aim to produce the cheapest hydrogen. The Adani Group plans to become the world’s largest renewable energy company by setting up charging stations across India.
The company will reportedly use its upcoming electric commercial vehicles to fulfil in-house requirements at airports and ports. In November 2021, Adani Group announced its plans of investing USD 70 billion in new energy spaces for ten years. To fulfil its plans of undertaking green projects, the company plans to establish a new R&D centre. Located at the special economic zone (SEZ) in Mundra, Gujarat, the centre will provide access to electric mobility. With these plans, the Adani Group will compete with the Tata Group and Reliance, which also announced low-carbon project plans.
Current EV ecosystem in India
The affordability of EV-based mobility in India is one of the main reasons why companies aim to target the segment. Currently, the cost of operating electric CVs is 80 paise per Km which is significantly less compared to diesel-powered CVs. These CVs operate at INR 4 per Km, with the segment dominated by Tata Motors and Ashok Leyland, respectively. Experts believe that the addition of the Adani Group will help expand the industry and act as a net positive. Overall, the subsidies offered by the Indian Government also aid in reducing the overall cost of operating e-CVs.
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