Gordon Murray Design backing Aussie EV project

The owner of the Arrium steelworks at Whyalla in South Australia is forging ahead with plans to build an electric vehicle in Australia, according to

Sanjeev Gupta's GFG Alliance will soon announce that an EV developed by Gordon Murray Design (GMD) will go into production at a manufacturing plant in Australia, said the AFR.

GFG Alliance originally planned to build the production model in the former Holden factory at Elizabeth in South Australia, but Holden and its parent company General Motors swiftly moved to end speculation about the plant being handed over to Gupta's company.

Gupta has told the AFR that the company will manufacture between 10,000 and 20,000 vehicles at the local plant and subsequently expand production to a factory in India.

The British billionaire argues that EV production lends itself to such small-scale manufacturing, but also appears to be banking on the Australian federal government supporting the initiative with concessions for EV buyers.

"Other governments are subsidising. You look at it around the world,'' the story quoted Gupta as saying.

GMD has been consulting on the project to GFG Alliance for the past 18 months.

Named after company founder and former technical director for McLaren Racing, Gordon Murray, GMD has developed numerous innovative vehicles, among them one – an electric city car – that appears to have been ruled out for the Australian market.

Gupta was quoted in the story saying that his "dream would be to launch a people's car," but he acknowledged that "Australia may not be ready for a smart car. We are likely to have a range [of electric vehicles]."

Pictured: GMD's Shell Concept Car