About $623 Million to Be Spent On Electric Cars by JSW Energy
The spending in electric technology is immensely rising owing to significant demand around the globe. After achieving the expertise in the electric technology development, a majority of the automakers are heavily investing in the mass production of batteries, charging infrastructure, and electric cars.
And on this ground, companies such as Creo, Teewe, Hike Messenger, and JSW Energy will spend up to Rs 40 Billion, which is approximately $623 Million to develop the technology.
India has projected a 15-year time-span for bringing in electric vehicles and promoting solar power capacity as an initiative to triple the renewable energy generation by 2022 and reduce the green house emissions level.
JSW has various subsidiaries operated under the company. One of it is JSW Steel, which intends to develop electric storage batteries for automobiles, residential use renewable power, and telecom towers.
The company on the basis of strong performance record in terms of efficiency and robust finances is exploring for technology partners and manufacturing locations for electric vehicles. The electric cars will be sold under the JSW brand.
Company’s spokesperson did not comment on its strategies to fetch the returns for the shareholders associated through ventures that don’t have a proven experience in the sector or business model. However, the company claims that based on the incentive offering by thegovernment and declining cost of the EVs, we are betting big on this move.
It is projected that in just coming three years, the cost an electric car will be similar to that of a conventional car in India. But as per the analyst, it is cynical that JSW can achieve its projection of launching a car with a deadline of 2020.
But analysts are cynical that JSW can meet the 2020 deadline for launching the car.
Abdul Majeed, automotive lead of PwC India said, “It seems to be a stiff deadline.”
He also added that current players are striving to balance the cost of the electric car battery as the cost factor is yet three times the cost of convention car battery and the infrastructure for charging is nowhere in the picture. The full-fledged ecosystem for EVs will minimally take more 7–10 years duration for a smooth transition.
However, JSW isn’t the only player in the listing, whereas it is far behind in the race. Players such as Tata Motors and Mahindra & Mahindra already have their EVs running on Indian streets. It seems that the fresher in the automobile sector needs to buck up its speed of development, at least to get listed on the chart.