May invest around $100 mn in setting up a 200-acre park
A clutch of Chinese automobile companies might soon make Gujarat's Sanand an electric vehicle (EV) manufacturing hub. Weeks after Chinese President Xi Jinping's visit to India, which began from Gujarat, seven firms from that country have formed a consortium (and registered it) to set up a 200-acre EV park in the motown near Ahmedabad, at an estimated investment of $100 million.
During Xi's visit, China had committed itself to investing $20 billion in the country over five years.
Jagat Shah, chief executive officer of Ahmedabad-based international trade consulting firm Global Network, who is working closely with the Chinese companies, confirmed: "Seven firms have come together and formed a consortium, China Electric Vehicle Consortium Pvt Ltd. It has been registered under the Companies Act. This consortium will buy land for setting up the EV park."
Riding an e-vehicle
- EV park: Seven Chinese companies have formed China Electric Vehicle Consortium Pvt Ltd to set up an electric vehicle park at Sanand
- $100 million: Proposed investment in setting up the park
- 200 acres: Likely area over which the park would come up
Chinese investment in India
- $400 million: Chinese firms’ investment in India over the past 10 years
- 200: Number of Chinese companies at various stages of their entry into India, according to industry estimates
A senior government official confirmed the land requirement for this project would be around 200 acres.
"The EV makers can go for private land buying in the area."
Among the seven in the Chinese consortium are Green Field Motor Co, VOCH Group, YueHua Control Group, Zhuji Yongcheng Auto Co, Wenzhou Jinpi Machinery Manufacturing Co and JBON Control Industry. These companies plan to make electric two-wheelers, three-wheelers, as well as four-wheelers and vehicles to be used for cleaning roads, besides city sanitary cars, ambulance cars and police cars.
Shah explained the consortium was planning to buy land, build infrastructure - a common facility centre and an exhibition area, where customers could test these electric vehicles. "The companies would be shareholders. They will be allotted land according to their requirement within the park; they will also make individual investments to build the plant. Exact details of investment are yet to be chalked out, as is the overall production capacity," he said. The consortium is also looking to set up an office in Ahmedabad; it should be able to start one in a week or 10 days.
Five people from China have arrived in the city to set the ball rolling for the park.
