JSW Group is gearing up for a major move in India’s electric vehicle (EV) sector, as it is set to invest a substantial $5 billion (400 billion rupees) in manufacturing projects in the state of Odisha. With electric cars constituting just 2% of India’s car sales last year, JSW aims to capture a substantial share in the growing market, as the government targets a 30% share of EV sales by 2025.
In the initial phases, JSW will allocate 250 billion rupees for the establishment of an EV battery manufacturing plant and an EV components plant. This move reflects the conglomerate’s commitment to green mobility and the development of the electric vehicle ecosystem. Additionally, JSW Group, in collaboration with China’s SAIC Motor, formed a joint venture in November, further emphasizing their dedication to sustainable transportation.
The conglomerate’s ambitious plan includes a third phase investment of 150 billion rupees to establish an EV components manufacturing complex. The success of this venture could play a role in determining India’s policy on import taxes for EVs, with potential implications for global players like Tesla seeking entry into the market.
As the EV landscape evolves, industry giants such as Tata Motors, Mahindra & Mahindra, and Hyundai Motor are advocating for the preservation of current tax policies, opposing any reductions in taxes on hybrids. JSW Group’s strategic investments position them to be a major player in India’s evolving electric vehicle market.