Auto Expo 2020: JBM To Invest Rs 500 Crore In Electric Bus Business
The company aims to invest Rs 500 crore in two years to strengthen its electric bus business.
JBM Auto Ltd. plans to make fresh investments into its electric bus unit as it expects demand for battery-powered public transport to rise on the back of India’s push for cleaner skies.
The company aims to invest Rs 500 crore in two years to strengthen the business and on charging and battery technology, Nishant Arya, executive director at JBM Group, told BloombergQuint in an interview. The firm aims to boost its capacity to produce 2,000 vehicles a year, he said.
“India has 1.7 million buses and about 70,000-80,000 are added in the market, of which intercity need is 50 percent. Hoping in the next five to six years majority of the intercity buses would be converting to electric, we are gunning for the lion’s share in the space,” he said, adding that the company has already spent Rs 300 crore on the business.
India, home to some of the cities with the world’s dirtiest air, is pushing electric vehicles to curb emissions. Last year, the government approved buying 5,500 electric buses for 64 cities under the second phase of the FAME— Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles—scheme.
JBM Group expects electric buses to contribute half of its business. It vies with BYD-Olectra, Tata Motors Ltd. and Ashok Leyland Ltd. to supply battery-powered transport.
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