JSW targets Rs 12,000 crore revenue from its Chhatrapati Sambhajinagar EV plant, with flexible capacity for electric trucks and buses.
Key points
- JSW Plant Targets Rs 12,000 Crore Top-Line
- After-Sales Business Could Add More Revenue
- Production Capacity to Increase to 25,000 Units
- Focus on Electric Trucks and Buses
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JSW Group is targeting a potential top-line revenue of around Rs 12,000 crore from its new electric commercial vehicle manufacturing facility in Chhatrapati Sambhajinagar, Maharashtra. The company has invested around Rs 2,500 crore in the facility, which has an initial annual capacity of 15,000 heavy commercial electric vehicles.
The plant has been designed with flexible production capacity that can be used for both trucks and buses, depending on market demand.
JSW Plant Targets Rs 12,000 Crore Top-Line
Table of Contents
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1. JSW Plant Targets Rs 12,000 Crore Top-Line |
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2. After-Sales Business Could Add More Revenue |
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3. Production Capacity to Increase to 25,000 Units |
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4. Focus on Electric Trucks and Buses |
According to JSW Group, the plant has an installed capacity of 15,000 heavy commercial EVs. With an estimated average selling price of around Rs 80 lakh per vehicle, full production could generate close to Rs 12,000 crore in primary vehicle revenue.
The company has designed the facility to remain flexible between commercial vehicle categories. This means production can be adjusted between electric trucks and electric buses depending on customer demand.
However, JSW expects that reaching full capacity will take time. The company has indicated a five-to-seven-year period for the facility to reach high capacity utilisation.
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After-Sales Business Could Add More Revenue
Apart from the revenue generated through vehicle sales, JSW expects its after-sales business to provide an additional revenue stream.
According to the company, after-sales services could contribute around 20% to 30% of vehicle revenue. This could translate into an additional Rs 2,000 crore to Rs 3,000 crore annually once the business reaches scale.
The after-sales business can include maintenance, service and other support requirements for commercial EV customers.
Production Capacity to Increase to 25,000 Units
JSW is already planning an expansion of the Chhatrapati Sambhajinagar facility. Once production reaches around 50% to 70% of the existing capacity, the company plans to undertake brownfield expansion within the current facility footprint.
This expansion could increase annual production capacity from 15,000 units to around 25,000 units before additional land is required.
The flexible manufacturing setup will allow JSW to adjust the mix of electric commercial vehicles according to market requirements.
Focus on Electric Trucks and Buses
JSW Greentech has launched the Ampstar brand for electric commercial vehicles. Its planned portfolio includes heavy-duty electric trucks and buses for different commercial applications.
The company has already showcased a 55-tonne electric tractor-trailer and a 12-metre electric bus. Its manufacturing plans include 5,000 electric trucks and 10,000 electric buses annually at the initial 15,000-unit capacity.
With the planned production expansion and growing electric commercial vehicle portfolio, the Chhatrapati Sambhajinagar plant is expected to become an important part of JSW's automotive business.
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Frequently Asked Questions
Q1. What is the revenue target of JSW's new EV plant?
Ans. JSW estimates that the plant could generate around Rs 12,000 crore in primary vehicle revenue at full capacity.
Q2. What is the initial production capacity of the JSW EV plant?
Ans. The plant has an initial annual capacity of 15,000 heavy commercial electric vehicles.
Q3. Can the plant manufacture both electric trucks and buses?
Ans. Yes. The plant has been designed with flexible capacity that can be used for both electric trucks and electric buses.
Q4. What is JSW's planned expanded capacity?
Ans. JSW plans to increase capacity to around 25,000 vehicles through brownfield expansion after reaching 50% to 70% utilisation of the initial facility.