Recently, Adani Group received trademark for ‘Adani’ name for the automobile sector, prompting speculations about its entry into that space
Indian multinational conglomerate Adani Group is seemingly eyeing the automobile sector. A trademark has been registered for the name ‘Adani’, proposed to be used for vehicles, by S.B. Adani Family Trust. This news follows hot on the heels of Adani Green Energy Ltd hitting a market cap of Rs. 3 Lakh Crore.
The group recently set up a new wholly-owned subsidiary – Adani New Industries Ltd (ANIL) – to undertake the development and operation of green energy projects, including synthesis of low carbon fuels/chemicals and generation of low carbon electricity. ANIL will also manufacture solar modules, batteries, electrolysers, and key components for other green energy projects (wind turbines, green hydrogen generators, etc.).
Adani Transmission Ltd (ATL), India’s largest private sector power transmission, is planning to increase its renewable energy procurement share from the current 3 per cent to 30 per cent by FY2023, reaching 70 per cent by FY2030. Previously, Adani group’s founder and chairman – Gautam Adani – had stated that they are working towards making renewable energy as viable as fossil fuels.
Due to this focus on green energy, we believe the Adani group’s automobile journey will likely consist of electric vehicles. A lot of EV startups have popped up all over India in recent years, and the country is expected to enter an EV revolution very soon. With the local production of EV batteries, electric vehicles are expected to become mainstream in the coming years.
That said, there is no confirmation, that the conglomerate is planning to launch any automobiles anytime soon. It should also be noted that this isn’t the first time Adani group has filed a trademark for its name in the auto sector; back in 2015 and 2020, similar trademarks were registered by the family trust.
The biggest challenge faced by the automotive industry, not just in India, but globally, is the semiconductor chip shortage. Electric vehicles require a significantly larger number of said chips compared to traditional fossil-fuel-powered cars, and thus the mainstream production of EVs would require a massive increase in semiconductor chip production as well.
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