March 10th, 2025
Electric bus and truck production plan follows company’s major shift of Rs 40,000 crore project from Odisha after recent elections
JSW Group is investing Rs 1,487 crore to build a new electric vehicle factory in Maharashtra. The facility will make 10,000 electric buses and 5,000 electric trucks each year when it opens in 2027.
This smaller project comes alongside a much larger development. The steel and energy giant recently moved its massive Rs 40,000 crore EV and battery project to Maharashtra from Odisha after political changes in the eastern state.
Why Maharashtra Won the Investment Battle
JSW’s decision to relocate its flagship Rs 40,000 crore project followed a major political shift. In June 2024, the BJP defeated Naveen Patnaik’s Biju Janata Dal government after 24 years in power.
Meanwhile, Maharashtra actively courted JSW through its “Magnetic Maharashtra 2.0” campaign. The state approved an Rs 81,167 crore investment package in July 2024. Moreover, they directed Rs 75,632 crore of this money to the Vidarbha and Marathwada regions where JSW plans to build.
“Maharashtra simply offers better roads, ports, and rail connections,” said an industry expert familiar with the deal. “Additionally, the state already has a strong automotive supply chain that Odisha lacks.”
Global Partners Join JSW’s Electric Journey
JSW has formed key partnerships to strengthen its position in the EV market. First, the company expanded its collaboration with MG Motor India, a unit of China’s SAIC Motors. Together, they will develop new electric vehicles and launch a battery rental program to make EVs more affordable.
Furthermore, JSW is talking with Volkswagen Group about creating a joint venture. This partnership would combine German engineering expertise with Indian manufacturing capabilities.
Beyond vehicles, JSW is also negotiating with Chinese battery technology providers. These agreements would help the company develop its battery production facilities faster and more efficiently.
Building a Complete EV Ecosystem in Maharashtra
The Rs 40,000 crore mega-project includes much more than vehicle assembly. In fact, JSW plans to build a 50 GWh battery plant and lithium refining facilities. These investments aim to reduce India’s dependence on imported components that currently make up about 70% of battery production costs.
“We’re creating a complete supply chain for electric mobility in India,” explained a JSW representative. “From raw materials to finished vehicles, our Maharashtra investment will help make India a global EV leader.”
This approach aligns perfectly with the government’s Production-Linked Incentive scheme. The program supports local battery manufacturing as part of the broader Atmanirbhar Bharat (Self-Reliant India) initiative.
Jobs and Growth for Developing Regions
JSW’s projects will create approximately 19,000 jobs across Maharashtra. Many of these positions will be in Nagpur and Aurangabad, areas that have traditionally seen less industrial development than Mumbai and Pune.
The benefits extend beyond direct employment. The projects will also boost growth in related industries from parts manufacturing to transportation services. Additionally, the lithium refinery and copper smelter will create new opportunities in materials processing.
As JSW moves forward with these ambitious plans, its success depends on efficient execution and market acceptance. For Maharashtra, these investments firmly establish the state as India’s EV manufacturing leader and create a model for other states to follow.
