Panasonic Investment in India: India is set to receive a major boost in its advanced chemistry cell (ACC) battery storage space, with Japanese electronics giant Panasonic planning to make substantial investments in the country.
A high-level delegation from the company recently held talks with senior functionaries of the government. And apprised them of their plans.
The Government’s Production Linked Incentive (PLI) Scheme
The Indian government had in March last year selected four companies for the Rs 18,100 crore production-linked incentive (PLI) scheme. Panasonic is eyeing supplies not only to the yet expected plant of Tesla in India. But also to other players in the Indian automobile market. Companies such as Tata Motors, Mahindra & Mahindra, Mercedes-Benz, Hyundai, and the Volkswagen group are aggressively expanding their electric fleet in India. Thus would be seen as major consumers for Panasonic’s batteries.
The Benefits of the Scheme: Panasonic Investment in India
The government had also briefed the Panasonic team about the bullish business potential in India for automotive batteries. 10 companies had originally submitted their bids under the ACC battery program, for which Request for Proposal (RFP). It was released by the Ministry of Heavy Industries in October 2021. Of these, four were selected for incentives in March 2022, which, apart from Hyundai Global Motors, involved Reliance, New Energy Solar, Ola Electric Mobility, and Rajesh Exports.
Panasonic is coming close to finally setting up a battery manufacturing plant in India under the government’s advanced chemistry cell (ACC) battery storage scheme. The company is now “coming close to making substantial investments” in India. The government’s PLI scheme is set to provide a major boost to India’s ACC battery storage space. The country is set to become a major player in the electric vehicle market.