In India’s automobile sector, competition regarding electric and new energy vehicles is continuously increasing. Meanwhile, JSW Motors has taken a big step and secured funding of about Rs 8,000 crore from the country’s largest bank SBI. This funding is considered very important for the future expansion plans of the company.
According to ET report, this loan facility has been given for a period of more than 10 years. The company will use this fund for the construction of its greenfield manufacturing facility to be built in Maharashtra. This plant will focus on the production of new energy passenger vehicles. It is believed that this project can bring a big change in India’s EV sector. According to reports, if the demand in the secondary loan market remains strong, SBI may also transfer some part of this loan to other banks and financial institutions. This is also expected to increase activities in the credit market of the country.
Banks’ balance sheets are getting stronger
This deal shows the confidence of the Indian banking system, which is now visible in the rapidly growing electric vehicle sector. The EV market in India is expanding rapidly due to government incentives, increasing environmental awareness and changing consumer preferences. According to CareEdge Ratings, credit growth in the country may reach 13% to 14.5% in the current financial year. Whereas the deposit growth rate is estimated to be 11% to 12%. Banks are continuously emphasizing on strengthening their balance sheets and increasing investment in new sectors.
JSW Group already has a strong presence in steel, cement and power sectors. Additionally, the group also has a partnership with China’s SAIC Motor in JSW MG Motor India. At the same time, a separate collaboration has been done with Chery Automobile for new energy vehicles. The company says that its main goal is to create a strong identity in the segment of new energy passenger vehicles in India. In the coming time, the company will share information about its new vehicles and launch timeline.
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