A logo of Panasonic Corp is pictured at the CEATEC JAPAN 2017 (Combined Exhibition of Advanced Technologies) at the Makuhari Messe in Chiba, Japan, October 2, 2017.
A logo of Panasonic Corp is pictured at the CEATEC JAPAN 2017 (Combined Exhibition of Advanced Technologies) at the Makuhari Messe in Chiba, Japan, October 2, 2017. Reuters / Toru Hanai

KEY POINTS

  • Panasonic executives told senior government functionaries that they were considering India to establish a new plant
  • The company is planning to set up the plant under the government's production-linked incentive scheme
  • Companies like Tata Motors and Mahindra & Mahindra, which are looking to expand their electric fleet in India, could be consumers of Panasonic's batteries

Panasonic is considering India for setting up its next battery plant as automobile giants gear up to expand their fleet of electric vehicles in the country.

The news comes just days after Elon Musk's Tesla also expressed interest in opening a factory in the country.

Panasonic executives held talks with senior government functionaries about opening a battery manufacturing operation under India's production-linked incentive (PLI) scheme for advanced chemistry cell (ACC) battery storage.

Kazuo Tadanobu, global president and CEO of Panasonic Energy, met with former Niti Aayog CEO and G20 Sherpa Amitabh Kant and Heavy Industries Secretary Kamran Rizvi earlier this month and expressed the Japanese conglomerate's interest.

Manish Sharma, Panasonic Life Solutions chairman, India, and other Japanese team members were also present during the meeting.

The senior functionaries of the Indian government explained to Panasonic's high-level delegation the schemes available for their expansion plans and also told them how the country offers them an emerging market.

Panasonic, which is one of the biggest suppliers of batteries to Tesla, can turn major players like Tata Motors, Mahindra & Mahindra, Mercedes-Benz, Hyundai and the Volkswagen group — all of which are actively growing their electric fleet in India — into potential consumers of their batteries if the company sets up a plant in the country.

"As the news comes of Panasonic planning a battery manufacturing plant in India, there will be endless possibilities. I assume that Panasonic will be spending a significant amount of money to establish a strong foothold in the Indian battery market," Neeraj Kumar Singal, Indian entrepreneur and the founder and CEO of Semco Group, told International Business Times.

Singal believes this could push other battery manufacturers in the country to amp up their production to keep up with the global titan.

"This move could push Indian battery manufacturers to enhance productivity and improve quality to meet the global standards set by Panasonic. It will not only help the Indian battery market grow but also elevate India's presence in the global battery market," he said.

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Under the Indian government's PLI scheme for ACC battery production, 10 companies sent their proposals and four were eventually selected in 2022.

Reliance New Energy Solar, Ola Electric Mobility, Rajesh Exports and Hyundai Global Motors were the selected ones. However, Hyundai Global Motors later pulled out of the scheme.

Panasonic could take their place, but reports say there is no official confirmation on this.

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