GFG Alliance, owned by Indian origin man Sanjeev Gupta is involved in various ventures from steel-making to banking. Now the company will be funding and building a Formula-1 inspired electric vehicle for the Indian and Australian market. Gordon Murray, director of Mclaren Racing and Brabham Technical will be the head of the project. This step will give a worldwide push into the auto supply chain.
The model will be a small and light weight city car which is economical. Sales of Electric vehicles doubled in 2017, although the figures are only 0.1 percent of the total new vehicles, according to the report by Bloomberg New Energy Finance. The entry of new cheaper models and installation of the charging infrastructure from mid-to-late 2020 will result in sharp increase in demand of electric vehicles.
GFG is also the main bidder for the Amtek Auto Ltd, which is an India Auto parts maker. It will help the company to get a platform to further expand in India.
The demise of car industry of Australia has given an opportunity to acquire the parts of assembly lines and body shops. These acquisitions of plants and equipments by GFG would speed up the entry into production and also reduce the investments by about $500 million.
The i-stream design by Gordon Murray applies motor sport technology to reduce the weight of the vehicle and cut the cost of an assembly plant by 8 percent by simplifying the production process. This design language has already been used by Yamaha Motor Co.including a two seater sports vehicle, an SUV and MOTIV compact city car showcased at 2013 Tokyo Motor Show.
The reduction of weight will result in a longer range, so that the motorist need to recharge less frequently.
GFG has been involved in acquisitions since 2013 spread across Europe, US and Australia for the businesses of Steel Mills, Aluminium Smelters Energy producers and Automobile Component manufacturers.