JSW Motors Secures ₹8,000 Crore Funding From SBI For Its NEV Business

JSW Motors has secured funding of Rs 8,000 crore from the State Bank of India (SBI) for its new energy vehicle business.

The credit line facility has a tenor of more than 10 years, Bloomberg reported. The funding will go towards financing the company’s greenfield manufacturing facility in Maharashtra’s Chhatrapati Sambhajinagar and its new energy vehicle facility.

The lender may sell down part of the exposure to other lenders in the event of demand in the secondary loan market, according to the report.

The Chhatrapati Sambhajinagar plant, which is being set up in partnership with global equipment manufacturers, is expected to have a capacity of 3.5 lakh vehicles.

The latest funding is a boost to the country’s growing electric vehicle and new energy ecosystem.

It has been more than 10 years since the central government started promoting the adoption of electric vehicles through schemes like FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) and PM-EDRIVE (PM Electric Drive Revolution in Innovative Vehicle Enhancement).

The entry of JSW Motors into the automobile market will mark the country’s first homegrown automobile brand in decades.

The Jindal Group already has a partnership with British brand MG Motor, which is now owned by China’s state-backed SAIC Motor. The company also has a separate partnership with China’s Chery Automobile for new energy vehicles.

The company wants to establish a strong presence in the new energy vehicle market amid a regulatory push.

Currently, the electric passenger vehicle market is dominated by Tata Motors, followed by Mahindra & Mahindra. Maruti Suzuki is the latest entrant in the EV market with its recently launched eVitara SUV.

However, JSW Motors has already tasted success in the EV ecosystem with the MG Windsor, which is manufactured by its joint venture JSW MG Motor India. The Windsor is currently touted as the best-selling electric car in the country.