India looks to its own green energy transformation. Changing many sectors at once will require investment, new broad uses of technology, and clever policies over decades. The current events in India are pointing to small steps of progress.
General Motors (India) will sell a vehicle manufacturing plant in Talegaon to Hyundai as part of its global transformation and sizing down. By 2025 Hyundai plans to enlarge the plant from its current capacity of 130000 vehicles per year as part of a global plan to add 180000 vehicles per year of manufacturing capacity. This growth for Hyundai is paired with major manufacturing in Sriperumbudur. The old traditional global manufacturing presence of General Motors (GM) will shrink a little more with the sale.
General Motors (India) operated a plant in Talegaon, Maharashtra state. In 2017, after operating in India since the 1990’s, GM ceased selling vehicles in India. The announced intention was to sell the plant. In 2020 GM ceased operations in the Pune plant. A 2019 agreement to sell the plant to Great Wall Motors (China) for producing vehicles fell apart in 2022 due to regulatory opposition to selling a plant to a Chinese manufacturer. Other legal battles have raged on even today.
India has ascended the global sales and revenue rankings to become a Top 5 market for passenger vehicles as incomes and transportation profiles have changed. Another global traditional manufacturer, Ford Motor, quit major manufacturing operations in India (Sanand and Chennai), in 2021, as it is refocusing the enterprise for a green energy transformation. Ford lost an acknowledged USD$2B during its operations in India. A service parts and backoffice operations have seen reductions while a small pickup engines for export operation continues for Ford. Japanese Suzuki and Korean Hyundai have dominant market shares even as local manufacturing and competitors seek broader penetration of Indian marketspaces. German manufacturers have looked to India as another growth market as margins become hard to protect in highly competitive China.
The green energy transformation of the Indian market for vehicles will see the results of Hyundai pushing to retain and expand its market share with USD$2.45B of projects. The projects see plans to introduce at least 6 new EV/NEV product lines under the Hyundai and Kia brands.
These new product and production lines in India point to a longer term green energy transformation of transportation in India. The Federal government has announced a Rp 580B (USD$7B) plan for public-private partnerships (Federal government Rp 200B) to deploy up to 10000 electric buses in 169 cities over the next 10 years. A longer term goal has been mooted for up to 50000 buses (USD$12B) across the country. The green energy transformation will require new electrical grid upgrades, availability of electricity at higher capacities for charging networks, and carbon-reducing electrical generation plants. In pursuit of all these changes, touching many sectors, Federal, state, and local governments will be challenged to reduce regulatory burdens, accelerate timelines, and cooperate with private ventures.
Likely policy level adjustments will affect incentives for EV/NEV manufacturers, land use for green energy plants, geographic and political preferences, regulatory acceleration for grid footprints, and financial/tax policy adjustments. These changes will not be quick or easy in a complex Federal-State-Local-private stirring of conflicting objectives and policies in a Dynamic India.
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