The U.S. startup Fisker Inc will begin selling its Ocean electric sport-utility vehicle (SUV) in India in July 2019 and could begin manufacturing its cars locally within a few years, according to the company’s CEO.
Henrik Fisker stated in an interview in New Delhi that electric car sales in India will accelerate by 2025-26, and that the company intends to secure a first-mover advantage.
“Eventually, India will be all electric. It may not go as quickly as in the United States, China, or Europe, but we want to be among the first to enter “Fisker added.
Insufficient charging infrastructure and hefty battery costs are also to blame for the glacial shift, which accounts for less than 1 percent of India’s roughly 3 million annual automobile sales.
The government, which aims to increase this proportion to 30 percent by 2030, is offering billions of dollars in incentives to companies that manufacture EVs and other components locally.
Fisker electric SUVs
Tesla Inc, a competitor of Fisker, put its India entrance plans on hold after failing to negotiate a reduced import duty for its vehicles. Similar to Fisker, the company desired to import vehicles before committing to local manufacture.
While Fisker acknowledged that importing automobiles into India is “very expensive,” he stated that the business intends to utilise the Ocean to establish its brand, with its high pricing likely limiting production.
The Ocean retails for approximately $37,500 in the United States, but importing it to India would incur additional logistics expenses and a 100 percent import duty. This would put it out of reach for the majority of consumers in a market where the majority of vehicles are sold for less than $15,000. Fisker electric SUVs in India with an eye toward local manufacturing.
“Ultimately, if you want to have a greater volume in India, you almost have to begin manufacturing or assembling vehicles here,” Fisker added.
He stated that manufacture of the company’s next electric vehicle, the five-seater PEAR, is being considered in India, but not before 2026.
“If we can purchase this automobile in India for slightly below $20,000, that would be excellent. Then, I believe we will reach a particular volume and market share “If they find the right local partner, the timescale might be shortened, he said.
Fisker stated that a minimum of 30,000 to 40,000 vehicles per year
Fisker stated that a minimum of 30,000 to 40,000 vehicles per year would be required to establish a manufacturing in India.
He would not comment on the scale of the investment the firm deemed necessary, but he stated that establishing a plant with an annual manufacturing capacity of 50,000 automobiles in India would likely cost $800 million.
Fisker has a production contract with Magna International, which will produce the Ocean in its Austrian facility and ship it to India. It also has a contract with Foxconn to manufacture the PEAR.
