According to the chief executive officer of the American startup Fisker Inc (FSR.N), the business could start producing its automobiles locally in a few years and will start selling its Ocean electric sport-utility vehicle (SUV) in India in July.
Henrik Fisker predicted in an interview in New Delhi that sales of electric vehicles will pick up speed by 2025–2026 and added that the company hopes to gain a competitive edge by being the first to market.
“India will eventually switch entirely to electricity. We want to be one of the first people to get here, even though it might not move as quickly as the United States, China, or Europe “said Fisker.
Only 1% of India’s 3 million yearly automobile sales are electric cars at the moment; this glacial change is partially due to a lack of charging stations and high battery prices.
The government is providing businesses with billions of dollars in incentives to produce their EVs and related parts domestically since it intends to raise this share to 30% by 2030.
Tesla Inc. (TSLA.O), a rival to Fisker, postponed its intentions to sell cars in India after failing to reduce the import tariff on its vehicles. Similar to Fisker, it sought to import cars to gauge demand before committing to domestic production.
Although Fisker acknowledged that importing cars into India is “extremely expensive,” the company intends to utilize the Ocean to establish its brand, and its high price will probably limit sales, he said.
The Ocean retails for about $37,500 in the US, but shipping it to India would incur additional expenditures for logistics and a 100% import duty. In a market where the majority of automobiles sold are priced under $15,000, that would make it out of the price range of the majority of purchasers.
“In the end, you practically have to start constructing a vehicle here or at least undertake some assembly,” Fisker added, “if you want to have somewhat of a greater volume in India.”
“It would be fantastic if we could purchase that automobile locally in India for less than $20,000. Once we reach a certain volume and market share, I believe, “He continued by saying that the timescale might be shortened if they find the proper local partner.
According to Fisker, at least 30,000 to 40,000 automobiles would need to be produced annually in order to establish a manufacturing in India.
He did not explicitly address the amount of investment the business felt was required, but he did state that it would probably cost $800 million to build a plant in India with a production capacity of 50,000 cars annually.
Magna International (MG.TO), which will produce the Ocean in its Austrian facility and send it to India, has a contract manufacturing deal with Fisker. Additionally, it has a contract with Foxconn to construct the PEAR.
According to him, the company is visiting car component suppliers to acquire parts for its global production and is looking for real estate space to construct a showroom in New Delhi.
We are already developing some relationships, he remarked.
