Smart Global has inked a pact with leading global electric vehicle manufacturer and Hong Kong-listed company BYD Co Ltd to produce electric buses at its facility near Delhi.
"In an environment where development is being directed towards sustainable co-existence, I believe that this will be a highly successful project for the Smart group," Smart Group Founder and Chairman B K Modi told reporters here.
The partnership with BYD will help bring world class technology to the country, he added.
"We already have a plant in ModiCiti in Uttar Pradesh and there could be more plants in the future," he said, adding that the overall investments in the long-run could go up to USD 1 billion without sharing a timeline.
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In the initial phase, the company would roll out electric buses and taxis from the ModiCiti facility and later will also look at rolling out electric passenger cars.
"We are focusing on metro and smart cities in the initial phase to cater to public transport. Later, we can also look at passenger vehicles too," Modi said.
When asked about localisation of content on the electric buses, he said: "To start-off with, it is around 50 per cent. By next year we aim to take it to 75 per cent".
Modi said the government needs to take bold steps and incentivise citizens and industry players to adopt electric vehicles.
"One of the ways we could encourage the industry is by making it a zero tax industry," he said.
BYD Head Automobiles Vertical Liu Xueliang said: "India is a very big market for us, and with the business environment being favorable we feel its the right time for us to capture the e-vehicle market of the country. We are proud to collaborate with Smart Group in this endeavour in India.