According to Fisker Inc’s chief executive officer, US startup Fisker Inc will start selling the Ocean electric sport-utility vehicle in India next summer and could even begin manufacturing cars locally in coming years.
Henrik Fisker stated that India’s electric car sales will accelerate by 2025-26. He also said that the company is looking to be a first-mover. Eventually, India will go fully electric. Fisker stated that while it may not move as quickly as the U.S. or China, India will be fully electric.
India currently has a mere 1% share of its 3 million annual car sales. This is partly due to insufficient charging infrastructure and the high cost of batteries.
The government wants to increase this percentage to 30% by 2030. Therefore, it is offering billions in incentives to companies to make their own EVs and other parts locally.
Tesla Inc, a Fisker competitor, put off its India entry plans after it failed to secure a lower import duty for its cars. Fisker was the first to import vehicles in order to test the market, before moving to local manufacturing.
Fisker acknowledged that it is expensive to import vehicles into India. However, the company prefer to use Ocean to help build its brand with its premium pricing.
The Ocean is available for purchase at $37,500 in the United States. However, imports to India would incur additional logistics costs and a 100 percent import tax. This would make it unaffordable for most buyers in India, where most cars are under $15,000.
Fisker stated, “Ultimately, if your goal is to have a greater volume of vehicles in India, then you will almost have to begin building them here or do some assembly.”
He said that the company’s next EV, the five-seater, smaller PEAR, is being considered for production in India, but not before 2026.
If we can find that vehicle locally in India for less than $20,000, that would be great. He said that they will reach a certain volume and market share if they can find the right partner in India.
Fisker stated that India’s plant would need a minimum of 30,000 to 40,000 cars annually.
Although he did not comment directly on the amount of investment required by the company, he said that India would need to spend $800 million annually to build a plant capable of producing 50,000 cars per year.
Magna International and Fisker have a contract manufacturing arrangement. Magna International will manufacture the Ocean in its Austrian facility and ship it to India. Foxconn is also a partner in the construction of the PEAR.
He said that the company is looking for real estate to open a showroom in New Delhi and is also meeting with auto component suppliers to source parts to support its global production.
He said, “Already, we are beginning to build some relationships.”