JSW Group is planning to commence manufacture of Electric Vehicles (EV) cars. Reportedly, the EV business will likely taken up by a private group entity, unlike the group’s previous bid which was under JSW Energy.
According to media sources, JSW Group has approached states that are business-friendly about the possibility of building a factory and the likely incentives. The group is yet to shortlist a technology partner, and the plans are still in the early stages.
Earlier in 2019, the JSW Group had announced its foray into the EV manufacturing business. However, barely 18 months after the announcement, the company abandoned this plan owing to high uncertainties associated with the business as well as need to maintain capital for growth opportunities in the power sector.
The company had earmarked Rs 6,500 crore for this venture and was in advanced talks with General Motors to acquire the latter’s manufacturing facility in Talegaon, near Pune.
According to industry experts, the company’s decision to pull the plug on its plan was triggered when the department of heavy industries and NITI Aayog released the second phase of Faster Adoption and Manufacturing of Electric (and Hybrid) vehicles (FAME II) policy that ended subsidy for private buyers of electric four-wheelers.
In 2017, JSW Energy invested up to $623 million to build electric cars, batteries and charging infrastructure, part of the power company’s diversification plans.