Fisker to Sell Electric SUV in India Starting July Next Year, Plans to Manufacture Locally

Fisker's next EV — the smaller, five-seater PEAR — is being considered for production in India but not before 2026.

Fisker to Sell Electric SUV in India Starting July Next Year, Plans to Manufacture Locally

Photo Credit: Reuters

Fisker admitted it is "very expensive" to import vehicles into India

Highlights
  • Sales of EVs in India will gather pace by 2025-26, said Fisker CEO
  • Electric cars currently make up just 1 percent of India's car sales
  • Fisker has an agreement with Foxconn to build the PEAR
Advertisement

US startup Fisker will begin selling its Ocean electric sport-utility vehicle (SUV) in India next July and could begin manufacturing its cars locally within a few years, the company's Chief Executive Officer told Reuters.

Sales of electric cars in India will gather pace by 2025-26, Henrik Fisker said in an interview in New Delhi, adding that the company wants to secure a first-mover advantage.

"Ultimately, India will go full electric. It may not go as fast as the US, China or Europe, but we want to be one of the first ones to come in here," Fisker said.

Electric cars currently make up just 1 percent of India's roughly 3 million annual car sales, with insufficient charging infrastructure and high battery costs partly to blame for the slow shift.

The government, which wants to increase this share to 30 percent by 2030, is offering companies billions of dollars in incentives to build their EVs and associated parts locally.

Fisker rival Tesla put its India entry plans on hold after failing to secure a lower import tariff for its cars. Like Fisker, it first wanted to import vehicles to test the market before committing to local manufacturing.

While Fisker admitted it is "very expensive" to import vehicles into India, the company wants to use the Ocean to build its brand, with its premium pricing likely to limit numbers, he said.

The Ocean retails at around $37,500 (nearly Rs. 30,41,600) in the United States but importing it to India would add logistics costs and a 100 percent import tax. That would put it out of reach of most buyers in a market where the bulk of cars sold are priced under $15,000 (nearly Rs. 12,16,600).

"Ultimately, if you want to have somewhat of a larger volume in India, you almost have to start building a vehicle here or at least do some assembly," Fisker said.

The company's next EV — the smaller, five-seater PEAR — is being considered for production in India but not before 2026, he said.

"If we can get that vehicle just below $20,000 (nearly Rs. 16,22,700) locally in India, that would be ideal. Then I think we'll get to a certain volume and market share," he said, adding that if they find the right local partner the timeline could be shorter.

To set up a plant in India would require volume of at least 30,000 to 40,000 cars a year, Fisker said.

He did not directly comment on the size of investment the company considered necessary, but said that to set up a plant with an annual production capacity of 50,000 cars would likely cost $800 million (nearly Rs. 6,500 crore) in India.

Fisker has a contract manufacturing agreement with Magna International which will produce the Ocean at its Austrian unit and ship it to India. It also has an agreement with Foxconn to build the PEAR.

The company is scouting for real estate space to open a New Delhi showroom and is meeting auto component suppliers to source parts for its global production, he said.

"Already we are starting to build some relationships," he said.


Why is Oppo making strange choices with its flagship Reno series? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Fisker, Tesla, EV, Electric SUV
Flipkart Big Billion Days Sale 2022 Witnesses Over 1.5 Million Users per Second on Day 1
Government Launches Mobile App Sign Learn for Indian Sign Languages
Share on Facebook Gadgets360 Twitter Share Tweet Snapchat Share Reddit Comment google-newsGoogle News
 
 

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »