US startup Fisker Inc will start selling its Ocean electric sport utility vehicle (SUV) in India next July and could start manufacturing its cars locally within a few years, the company’s chief executive told Reuters.
Sales of electric cars in India will accelerate by 2025-26, Henrik Fisker said in an interview in New Delhi, adding that the company wants to secure a first-mover advantage.
“Ultimately, India will go fully electric. It may not go as fast as the United States, China or Europe, but we want to be one of the first to come here,” Fisker said.
Electric cars currently account for just 1% of India’s roughly 3 million annual car sales, with insufficient charging infrastructure and high battery costs partly to blame for the slow turnaround.
The government, which wants to increase this share to 30% by 2030, is offering companies billions of dollars in incentives to build their electric vehicles and associated parts locally.
While Fisker admitted it is “very expensive” to import vehicles into India, the company wants to use the Ocean to build its brand, with its premium pricing likely to limit numbers, he said.
The Ocean retails for around $37,500 in the United States, but importing it into India would add logistics costs and a 100% import tax. That would put it out of reach for most buyers in a market where most cars sold are priced below $15,000.
“Ultimately, if you want to have a little bit more volume in India, you have to start building a vehicle here or at least do a little assembly,” Fisker said.
He said that the company’s following EV, the smaller five-seater PEAR, is being considered for production in India, but not before 2026.
“If we can get that vehicle just under $20,000 locally in India, that would be ideal. Then I think we’ll get to some volume and market share,” he said, adding that if they find the right local partner, the timeline could be shorter.
Setting up a plant in India would require a volume of at least 30,000 to 40,000 cars a year, Fisker said.
He did not comment directly on the size of the investment the company deemed necessary but said setting up a plant with an annual production capacity of 50,000 cars would likely cost $800 million in India.
Fisker has a contract manufacturing agreement with Magna International (MG.TO), which will produce the Ocean at its Austrian unit and ship it to India. It also has an agreement with Foxconn to build the PEAR.
He said the company is looking for real estate space to open a showroom in New Delhi and is meeting with auto component suppliers to source parts for its global production.
“We’re already starting to build some relationships,” he said.