NEW DELHI: Billionaire Sajjan Jindal-led JSW Group, which on Saturday signed a Rs 40,000 crore MoU with the Odisha government to set up an integrated electric vehicles (EV) and EV battery manufacturing project in the state, is looking to manufacture 1 lakh electric commercial vehicles and 3 lakh electric passenger vehicle a year from the plant.
The Group is expected to start the project by the end of this year after getting all the necessary clearances. Following this, the project is expected to be completed in the next two-three years. Analysts tracking the auto sector said this is one of the biggest investments announced ever in the Indian automobile sector by a new entrant. JSW recently entered the automobile sector by announcing a joint venture to own 35% of a newly created JV with China’s SAIC Motor (which owns MG Motor India).
A senior automobile analyst said it will be a challenging task for the Group to establish itself in the highly crowded automobile space. “While the current electric PV market is small and growing at a fast pace, it will become highly competitive in the next few years when market leaders such as Tata Motors, Maruti, Hyundai and Mahindra would have multiple offerings. There will be competition from upcoming players such as Tesla and Vinfast. A new player or a player who has a small market share such as MG Motor will have to create a niche for itself,” the analyst said requesting anonymity.
In the commercial vehicle space, the Jindals will have to compete against the likes of Ashok Leyland, Tata Motors and Volvo Eicher. JSW Group Chairman Sajjan Jindal has so far said they would be producing high-quality batteries and EVs that are affordable and technologically advanced.