Pepper Motion has officially announced its strategic move to establish a significant manufacturing facility in India, confirming previous reports. The German company is set to undertake a fully integrated vertical production in Andhra Pradesh, converting diesel buses and trucks to electric and manufacturing new electric vehicles and batteries.
News of Pepper Motion's investment initially surfaced on social media, with reports indicating that Andhra Pradesh had greenlit an investment of 46.4 billion rupees (approximately 525 million euros) for an industrial complex in Punganur. The proposed facility is expected to generate around 8,000 jobs, focusing on the conversion and assembly of electric buses, trucks, and corresponding battery packs.
Today's confirmation from Pepper Motion provides additional details on the ambitious project, including plans for battery production of up to 20 GWh. The company envisions vehicles produced in India utilizing battery electric drives and Pepper's recently launched fuel cell-based drive system. The investment, totaling around 600 million US dollars across all expansion stages, aligns with previously reported figures.
Pepper Motion aims to commission the plant no earlier than 2025, with a production target of over 50,000 electric buses and trucks annually from 2027. The company also plans to market components for electric drives of commercial vehicles internationally, emphasizing its commitment to the burgeoning electric vehicle market.
Andhra Pradesh, known for its robust port and industrial infrastructure, was chosen as the site for Pepper Motion's venture. Andreas Hager, Managing Director and CEO of Pepper Motion GmbH, expressed gratitude for the support of Hon'ble Chief Minister YS Jagan Mohan Reddy and highlighted the state's progressive economic policies as contributing factors.
This decision follows approval from the Andhra Pradesh State Investment Promotion Board (SIPB), with the official presentation of the investment permit scheduled for the end of November 2023.
Pepper Motion's foray into the Indian market reflects a broader strategic shift, transitioning from its focus on German public transport to become a technology supplier for global manufacturers, retrofitters, and unique vehicle builders. The move aligns with India's push toward zero-emission commercial vehicle transportation, positioning Pepper Motion as a leading technology supplier in the region. The company notes significant interest from Indian state transport corporations, private fleet operators, and various segments of the commercial vehicle industry for electrifying their fleets.