New Delhi: The JSW Group is developing its electric bus platform, vehicle control unit and battery pack design in-house as it seeks to own key technologies and submit more competitive bids for government contracts that make the crux of the business in India, according to an executive and company disclosures.
The technologies are being developed through the group’s Pune research and development centre and JSW Energy and it will underpin buses to be built at the group’s upcoming 90-acre manufacturing facility in Chhatrapati Sambhaji Nagar, earlier known as Aurangabad, in Maharashtra, according to a company spokesperson. While there is no committed date for the start of its operations, industry experts see it taking off within a year.
The strategy with an in-house push marks a departure from that of JSW’s passenger vehicle business, which has so far relied on partnerships for products and technology. Here, it relies on a joint venture through JSW MG Motor India and a purported partnership with Chery for sourcing products for its initial offensive in the market through .
Market competition
The bid to own key technologies of the bus business comes at a time when the electric bus sector is seeing intense competition for tenders, with new age rivals including Eka Mobility and PMI Electro Mobility winning a lion share of contracts over legacy players such as Tata Motors, Ashok Leyland and Volvo Eicher.
“We are leveraging the group’s scale and industrial capabilities to develop world class electric commercial vehicles engineered specifically for Indian operating conditions,” a spokesperson for JSW Greentech, the group’s electric bus subsidiary, said in response to Mint‘s emailed queries. “Our platform, including our own vehicle control unit, is engineered in-house at our Pune R&D centre, complemented by select global partnerships & localization in areas that strengthen the product, while ensuring we retain control of the core architecture.”
In addition to the vehicle technology and platform, the conglomerate’s energy business has also been working on an in-house design for lithium ion battery packs that will be used in electric buses. Lithium ion cells are bundled in a battery pack that powers the vehicle.
“Leveraging advanced lithium-ion (Li-Ion) and lithium iron phosphate (LiFePO4) chemistries, we have developed battery pack configurations for electric buses and commercial mobility platforms that deliver enhanced energy density, faster charging capability and improved operational efficiency,” JSW Energy said in its latest annual report.
“Except for lithium-ion cells, our battery packs are engineered, developed and manufactured domestically, supporting the government of India’s Aatmanirbhar Bharat vision and contributing to the development of the local electric mobility ecosystem,” the annual report added.
Tender advantage
Experts said developing technology in-house is crucial as electric bus makers make money on the basis of how competitive prices are for bus operators to buy and run these vehicles. Typically, electric buses are procured by bus operators, who then run these buses in contracts with central and state government agencies along with private players.
“In electric buses, a significant proportion of lifecycle cost and performance is determined by the battery, power electronics, software, energy management system, and vehicle controls,” said Harshvardhan Sharma, group head – automotive tech & innovation at NRI Consulting & Solutions India.
“As tender prices become more aggressive and profitability comes under pressure, companies with proprietary platforms and software stacks are likely to have a structural advantage in cost, efficiency, and speed of innovation,” Sharma added. “For a player like JSW, developing an in-house electric bus platform and VCU suggests a long-term intent to build differentiated capabilities rather than remain dependent on external technology providers.”
With its electric bus strategy in place, the conglomerate is already venturing into the market with aggressive bids in government tenders. Mint reported on 12 June that JSW participated in the Centre’s latest for 6,230 units.
Bidding data for government’s latest tender reviewed by Mint showed that JSW’s electric bus arm participated across all cities and even managed to undercut legacy players such as Tata Motors, Olectra Greentech, JBM and Ashok Leyland in some. Though it could not win any contracts in this round, the company made its intent clear.
The electric bus subsidiary is currently led by chief executive Sumit Mittal, who was the former chief operating officer at Greencell Mobility, an electric bus operator.
JSW Greentech is a subsidiary of JSW Green Mobility, which is the promoter Sajjan Jindal-backed entity for building the conglomerate’s automobile business. JSW Motors is another subsidiary that is responsible for the conglomerate’s passenger vehicle business.
The automobile sector marks Sajjan Jindal’s newest bet after JSW started its journey in steel and then expanded into infrastructure, energy and ports, among other businesses, over the past four decades.
The group has infused ₹3,000 crore into its automobile business and tripled its borrowing limit to ₹15,000 crore, Mint .