California’s largest electric carmaker will buy $1.7 billion in batteries and other batteries technology from a Chinese manufacturer, as it ramps up production of the first battery-powered vehicle in its portfolio.
San Jose-based EV maker Sanrio is expected to acquire Tesla Inc., the world’s largest maker of battery-driven electric vehicles, for $2.1 billion.
The purchase will help Sanrio boost its manufacturing capacity and expand its battery-vehicle offerings, Sanrio CEO Scott Gurney said at a press conference on Monday.
The Sanrio acquisition follows a $2-billion deal by South Korea’s Hyundai Motor Co. to buy Tesla in January, which helped Sanrio gain market share in the U.S. market.
Tesla has seen some of its sales shrink in the last few quarters, as consumers increasingly turn to electric vehicles and companies such as Nissan NV, GM and Toyota Corp. sell more vehicles.
Sanrio expects the deal to help it produce at least 10,000 electric cars annually by 2021.
The acquisition of Tesla comes amid rising concern about the viability of electric vehicles.
A report from a group of industry analysts last month said electric vehicles could account for nearly half of all vehicle sales by 2030, down from 55 percent in 2020.
Sanrio said it will use the acquisition to boost its battery manufacturing capacity, which is currently located in China.
The acquisition of the company’s U.K.-based battery production unit will help it meet demand in the second half of 2021, it said.
Sanroys battery-based vehicles, which are also referred to as electric cars, will be built at a facility in Britain that will be in line with its global manufacturing schedule, Gurnee said.
Sanroys stock rose $4.89, or 3.5 percent, to $9.84 in afternoon trading.
Sanji Automotive said in a statement on Monday that the company plans to increase its sales of battery cars by 25 percent this year and 50 percent next year, and is focused on creating an electric car portfolio that can reach the global market in 2020 or 2021.
Sanzaru, which makes the Sanrio EV, also plans to produce the battery-equipped vehicles at a new factory in India and will launch its own electric vehicle in 2021, the company said.
The Sanzaru vehicle will be the first mass-produced electric vehicle by a Japanese company in India.
Sanzo has been growing at a steady pace since its inception in 2005, and its new model, the Sanzaris X, is expected in the coming months.
The company will have a total of 10,100 Sanzars built, the statement said.
It said it expects the company to spend around $300 million in 2021 on manufacturing.
Sanzo has also recently acquired a U.M.A. division that makes electric vehicles from Renault SA, a French automaker.
The company’s market value has increased by nearly 50 percent to $6.5 billion in the first quarter of 2021 from a year earlier.
Sanzara has sold more than 5.5 million vehicles, and has about $1 billion in annual revenue.
Sanza said it plans to expand its electric vehicle portfolio to 100 vehicles in 2021 and 120 in 2022.
The firm said it is focusing on electric vehicles as the company looks to expand into emerging markets.