JSW Group, one of India’s leading conglomerates, announced its plans to invest 400 billion rupees ($4.81 billion) in electric vehicle (EV) manufacturing projects in Odisha, a coastal state in India. The company aims to take on both domestic and international players in India’s rapidly growing EV market. In 2022, electric vehicle sales accounted for approximately 2% of India’s overall car sales, with Tata Motors dominating the market. However, the Indian government has set a target of achieving a 30% market share for EVs by 2023.

In the first two phases of its plan, JSW Group will invest 250 billion rupees in an EV battery manufacturing plant and an EV components plant. Additionally, the conglomerate plans to invest 150 billion rupees to set up an EV components manufacturing complex in the third phase. The decision aligns with JSW Group’s joint venture with China’s SAIC Motor, formed in November, which focuses on green mobility and the development of the electric vehicle ecosystem in India.

However, the Indian government still needs to decide on reducing import taxes for EVs under a proposed policy that encourages car manufacturers to commit to local manufacturing. This decision could potentially ease Tesla’s entry into the Indian market, as confirmed by a top government official. Tata Motors, Mahindra & Mahindra, and Hyundai Motor have urged the government to maintain the current policy, discouraging any reduction in taxes on hybrid vehicles.

In conclusion, JSW Group’s sizable investment in EV manufacturing projects in Odisha demonstrates the conglomerate’s commitment to the rapidly growing EV market in India. Moreover, this move aligns with the government’s goal of achieving a 30% market share for EVs by 2023. By partnering with SAIC Motor and focusing on green mobility and the development of the electric vehicle ecosystem, JSW Group aims to position itself as a key player in the Indian EV industry’s future.