Our Rough Report on Gotion High-Tech's India opportunity, feat. VW & TACO.
VW if they work on their electrification plans, Mahindra deal for cells & Tata current deal can lead to a potentially good opportunity for local cell manufacturing.
Firstly, what's the relation between VW and Gotion? Well VW is largest shareholder of Gotion
In 2022 VW announced its Unified Cell approach, gotion being the tech partner & supplier.
Gotion is helping VW with its germany plant and it's also a designated supplier for its overseas markets.
According to a AutoCar report, VW-Skoda EV plan for India can lead to half a million unit for both domestic and export markets. Mahindra announced a deal for 50GWh cell supply over lifetime. We took these figures on a roughly 10 year time period
Gotion and TACO relation - Both have a JV in India for pack manufacturing & R&D
India Context for TACO and Gotion
Nexon, Tiago, Tigor EVs use cells from Gotion. MG Comet too has pack by TACO-Gotion. In current demand, we took yearly use of 2GWh
Tata also opened a BESS plant recently of 6GWh capacity. Let's assume conservative as of today demand of 1GWh.
Then we have recently announced VinFast plant. VF is also a customer of Gotion. VF, if successful locally, we assumed couple GWh for them too.
So
So how can this work?
VW-Skoda-Mahindra need unified LFP cells. TACO, VF use other Gotion ones.
Joint production? Separate production sites and mechanism for both different ones?
What we didn't account for above?
But
Summary -
The Conservative estimate of 12GWh cell demand looks confidence inspiring to take the plunge to have a local cell plant to boost the adoption of Elektromobilität in India.
As we say we need to have more players and more models to address different needs of consumers in India.
Having local cell plant will only help to build the consumer confidence in the brands.
What do you think of this? We definitely need local Cell production. LFP market is ripe for someone to capture if they can.
Would these companies do this? Mahindra will be taking cells from BYD and Gotion-VW unified. Both not having production here means all of them will be imports.
VW if they materalise on their plans, too will be import dependent for cells.
In future, import duties on cells is sure to increase, which could create potential issues for companies totally reliant on imports.
Any suggestions? Do let us know.
Click here to download PDF report.
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Team Tesla Club India