Indian billionaire investor Rakesh Jhunjhunwala is betting on automaker Tata Motors as one of many winners of India’s rising electrical car market.

“I believe the most important and the perfect participant in electrical automobiles in India goes to be Tata Motors,” Jhunjhunwala advised CNBC’s “Street Signs Asia,” on Tuesday.

“I’m a big shareholder of Tata Motors. I’m taking part in the EV story by way of Tata Motors,” the investor stated.

He defined that valuation is not going to finally determine who will win the race for electrical automobiles. As an alternative, giant firms which have manufacturing and funding capabilities, distribution channels, manufacturing expertise and the flexibility to design good automobiles are finally going to come back out forward, in accordance with Jhunjhunwala.

“I believe it’ll be the Mercedes, the Volkswagens, and the Tata Motors, who’re going to be the actual winners within the electrical race,” he stated, including that one other issue required to reach India is to have the ability to customise the automobiles for Indian street situations — for instance, the flexibility to drive these automobiles on flooded roads.

India can be a cost-conscious market the place electrical car utilization is more likely to rely upon the form of incentives the federal government provides, the investor defined. Infrastructure, similar to charging stations, nonetheless must be constructed out for widespread adoption. However, Jhunjhunwala stated, India is “prepared as any creating nation, however, I believe the tempo of readiness goes to go up like something.”

Each Tata Motors and competitor Mahindra & Mahindra already promote electric vehicles. U.S. electrical car big Tesla is reportedly preparing to open an electric car manufacturing unit in South India.

Diversified monetary providers agency Motilal Oswal this month advised CNBC a number of the joy in India’s electrical car market is coming from ancillary spaces such as battery manufacturing.

Among the many automakers, the agency stated it prefers Maruti Suzuki — India’s largest carmaker — due to its sturdy distribution community despite the fact that Maruti itself just isn’t fairly as upbeat on electrical automobiles but.

India is trying to each cut back its dependency on oil and enhance its air high quality. That’s more likely to spur a push into electrical automobiles.

Reuters reported final 12 months that India has potential plans to offer $4.6 billion in incentives to firms establishing superior battery manufacturing amenities as a part of its efforts to advertise using electrical automobiles. The nation previously approved a scheme to subsidize the sale of electrical and hybrid automobiles.

On this month’s annual finances for the fiscal 12 months that begins on April 1, India announced a voluntary vehicle scrapping policy to part out previous automobiles that contribute to the nation’s poor air high quality.