JSW Intends to Introduce In-house Electric Vehicle Brand and Enter the EV Market

The massive Indian steel company JSW Group intends to launch an electric vehicle (EV) business under its own name. Chairman Sajjan Jindal indicated in an interview that JSW wants to become a major force in India's expanding EV market.

This action comes after JSW previously announced a $1.5 billion joint venture (JV) to manufacture and market MG EVs in India with SAIC Motor, the Chinese carmaker that owns the MG brand.

JSW to produce EVs in Maharashtra

JSW intends to set up an EV manufacturing plant in Aurangabad, Maharashtra, especially for its own brand. The company's investment of Rs 27,200 crore ($3.2 billion) was confirmed by the Aurangabad Industrial City (AURIC), which is anticipated to generate over 5,200 employment and produce both passenger and commercial EVs.

EV Market in India

Although battery-powered two-wheelers have become very popular in India, full-size EV adoption is still sluggish. According to S&P Global Mobility, EVs only make up 2% of passenger car sales at the moment, or about 100,000 units a year, as per the report.

In contrast, widespread EV adoption has been fueled by hefty subsidies and incentives in China. According to a research by Al Jazeera, China has the biggest EV business in the world, making up roughly 58% of global manufacturing. The Tesla company, managed by Elon Musk, is still the market leader for EVs in the US.

Demand is being increased, nevertheless, by growing interest from wealthy Indian consumers. For example, even though sales of MG Motor India's Windsor crossover EV, which costs Rs 13.5 lakh, were limited to 50,000 units due to capacity issues at its Gujarat plant, the vehicle was completely booked for the months that followed its September introduction.

Industry heavyweights Tata Motors and Mahindra & Mahindra, as well as upstarts like Ola Electric, are among the other automakers who have already joined the EV market in India. Hero Electric, the market leader for two-wheelers, and Ashok Leyland, which specializes in electric buses under the Switch Mobility brand, are other competitors.

In the meantime, Maruti Suzuki is investigating or growing their selection of EVs. Depending on the model and available options, EV pricing in India start at Rs 6.9 lakh.

Indian government push toward EVs

Government subsidy programs like the "faster adoption and manufacturing of electric vehicles" (Fame) scheme, which provided incentives to both producers and consumers, have helped India's EV push. A temporary Electric Mobility Promotion Scheme (EMPS) followed the second phase, which ended earlier this year and terminated in September as well. By the end of the year, the third phase of Fame should be cleared.