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JSW Group plans to put $5 billion into electric vehicle projects in eastern India

On January 22, JSW Group announced a hefty investment of 400 billion rupees ($4.81 billion) for electric vehicle (EV) manufacturing projects in the coastal state of Odisha, India. This move positions JSW Group to compete with various players, both local and international, in the rapidly growing EV market in India.

In the previous year, electric vehicle sales constituted approximately 2% of total car sales in India, where Tata Motors (TAMO.NS) emerged as a key player in the market. However, with a government target aiming for a 30% share by 2023, the landscape is set for a significant shift.

JSW Group has outlined a substantial investment of 250 billion rupees in the initial phases of its plan, directing funds towards an electric vehicle (EV) battery manufacturing plant and an EV components plant, as revealed in a statement on Monday. In a subsequent third phase, the conglomerate aims to inject an additional 150 billion rupees to establish an EV components manufacturing complex. Notably, JSW Group, in collaboration with China’s SAIC Motor (600104.SS), initiated a joint venture in India back in November, with a specific emphasis on promoting green mobility and fostering the development of the electric vehicle ecosystem.

India is yet to finalize a decision on potential reductions in import taxes for electric vehicles (EVs) under a proposed policy that encourages carmakers to engage in local manufacturing. Such a move could potentially facilitate Tesla’s entry into the market, as disclosed by a senior government official to Reuters. Notably, Tata, Mahindra & Mahindra (MAHM.NS), and South Korea’s Hyundai Motor (005380.KS) have advocated for maintaining the existing policy, urging New Delhi to refrain from decreasing taxes on hybrids, as reported by sources earlier this month.

JSW Group is making significant strides in the electric vehicle (EV) sector with substantial investments in manufacturing projects and collaborations, positioning itself to be a key player in India's growing EV market. Meanwhile, the Indian government's deliberations on import tax cuts for EVs may impact industry dynamics, with various automakers expressing differing views on the proposed policy changes.


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