New Delhi: India plans to throw companies such as Tesla Inc., Samsung and LG Energy to encourage them to invest in a local manufacturing battery, because it appears to establish a domestic supply chain for clean transportation, said two government sources told Reuters.
India will host five roadshows starting next month in countries including the United States, Germany, France, South Korea and Japan to convince battery makers to make local production, one of these officials.
Tesla, LG Energy and Samsung are among those who will be invited to attend, even though the delegation list has not been confirmed.
Other companies targeted include Northvolt, Panasonic and Toshiba, said the official.
This step is part of a wider $ 2.4 billion incentive program to increase the manufacture of batteries that have begun by the government inviting investment proposals from the company.
While domestic players such as Reliance Industries, the Adani Group and Tata Group have shown interest, there is little enthusiasm from the global so far, the official said.
Some global companies are hesitant to come without local partners because they need large investments and India still ranked badly on contract enforcement, he added.
Others choose to invest in larger markets such as the United States and Europe where battery demand is higher.
“Getting a global company to India will indicate seriousness and they will also bring good technology, quality and safety,” said the person.
India’s plan came as a nation preparing to meet in Glasgow next week for the UN climate change conference.
India saw clean automatic technology as its strategy center to cut pollution in major cities and reduce oil dependence, while also fulfilling its emission targets.
Electric vehicles (EVS) are currently a small portion of total sales in India mainly because the price is high because the battery is imported.
But growth increased because the government offered incentives to car makers and EV buyers.
South Asian countries intend electric cars to make 30% of total private car sales in 2030 and for electrical motorbikes and scooters to make 40% of total sales.
It is expected to encourage battery demand which currently contributes around 35% to 40% of the total vehicle costs, but can be reduced by local production.
Under the provision of the $ 2.4 billion program, India wants to set a total of 50 gigawatt hours (GWH) the battery storage capacity for five years which is expected to attract direct investment of around $ 6 billion.
To qualify for incentives, the company must set a minimum of 5 GW storage capacity and meet certain local content conditions.
This will require a minimum investment of more than $ 850 million, the official said.