Indian EV MNC To Test Market UAE Manufacturing For Electric Powered Buses And Commercial Vehicles

Switch Mobility changing from fuel to EV based vehicles with production in Ras Al Khaimah

If anywhere has sunshine and can generate electricity from solar power, it is the United Arab Emirates – one reason why India’s Mumbai based Hinduja Group will start testing demand in the UAE for electric-powered buses and light commercial vehicles. These are likely to be based on its existing liquid fuel-based models.

Dheeraj Hinduja, the Executive Chairman of Hinduja has stated that various government incentives that are available for a transition to electric power will help. Hinduja, who have factories in both India and the UK, already have an order book for 5,000 electric buses and around 2,500 light vehicles.

Hinduja said that “The UAE would be a great market to get into for the EV range – whether that means shipping our vehicles from India or the UK needs to be tested. All of that will depend on the price points, the demand, and so on. If all goes well, we will have an assembling facility in the UAE.”

If so, that is likely to see Hinduja site an assembly line at its existing Ras Al Khaimah operations, in the neighboring Emirate, an example of how Dubai acts as a focal business and investment point and can introduce investments into other Emirates with a lower manufacturing cost base. The Ras Al Khaimah plant also makes ‘Ashok Leyland’ branded buses and other vehicles.

Hinduja’s conversion to EV production occurred when merging the electric vehicle operations of Ashok Leyland with that of UK-based Optare, which the Group had acquired. That business has been rebranded as Switch Mobility.

The Ras Al Khaimah facility is already operating at full capacity, bolstered by the latest win for 1,400 fuel-powered buses. “Ashok Leyland is the brand of first choice for local and Gulf-wide school and staff transport needs” said Hinduja. “If we do build an EV (assembly) facility in the UAE, it will still be in Ras Al Khaimah. That makes better sense for us because we have an extensive vendor base supplying our existing operations.”

“With the Ras Al Khaimah facility, we are very much part of the ‘Make in UAE’ initiative. We are open to all the support the government can give us in expanding the UAE’s green agenda. This is what we hope to achieve by creating that demand for electric-powered buses. The UAE is definitely a place where we can keep expanding.”

It also means that India is outsourcing manufacturing to resell back to India. “India continues to grow at 6-7% and that cannot be overlooked” said Hinduja. “We will keep parking investments in core sectors.”

The experience of Hinduja makes a great case study into how Asian businesses can utilize the UAE as a testing ground for new technologies. The UAE government provides investment incentives in such schemes, and these, when coupled with domestic incentives (in this case from the government of India) for manufacturers to switch to EV or clean fuel alternatives can see interesting collaborations and partnerships emerge, in this case within the Ras Al Khaimah emirate where labor is less expensive, and port facilities provide additional Middle Eastern and South Asian market access. Recent trade agreements are also paving the way for astute investors to commence operations.

For assistance with regional intelligence and business planning in the UAE please email dubai@dezshira.com

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