The recent G20 Leaders’ Summit emphasized that the United States and India are working together to address the climate catastrophe via long-term investments, including decarbonization of public transportation. 

The Indian government approved plans for a nearly 580 billion rupee ($7 billion) scheme to deploy 10,000 electric buses in 169 cities over a decade, along with charging and associated infrastructure facilities. 

The government’s push for electric public vehicles comes as it works to cut emissions and reduce fuel imports, with companies offering incentives to build vehicles and parts in the country. 

The Indian government has plans to deploy 50,000 electric buses nationwide, at an estimated cost of $12 billion. It will not only help improve air quality but also create job opportunities in the manufacturing and maintenance of electric buses and their components. 

As a result, the future development in the use of electric buses in public transportation may assist those electric bus manufacturers in securing orders. 

Here are the three Electric Bus stocks with Capex up to Rs 1,200 crore

Olectra Greentech Ltd 

Olectra Greemtech shares were trading at Rs 1,221.95 a share on Wednesday, up 2.48 percent from the previous close price. The company has a market capitalization of Rs 10,022 crore. 

As per the report, Olectra Greentech, one of India’s leading electric bus manufacturers, plans to double its yearly output to 2,500-3,000 buses from 1,250 at present. 

Recently, the company board has approved Rs 800 crore of fund-raising, out of which Rs 400 crore will be invested by the company promoters. The rest are open to banks and financial institutions for funding, To establish charging infrastructure across India and also to set up over 1,500 electric bus charging stations in multiple cities.

In addition, The company has partnered with various urban transport agencies to provide end-to-end electric mobility solutions encompassing vehicles, charging infrastructure and maintenance. 

As of the September quarter of 2023, the company has an in-hand order book of Rs 8,209 crore. 

In the previous quarter, The company won India’s biggest e-bus order from Maharashtra State Road Transport Corporation (MSRTC) to supply 5,150 buses at a price of over Rs 10,000 crores to the state government body. 

JBM Auto Ltd. 

On Wednesday, the shares of JBM Auto were trading at Rs 1,258.85 per share, down 0.58 percent from the previous closing price. The company has a market value of Rs 14,900 crore. 

The company has planned to make investments (via equity infusion) of Rs. 800 crore in the Gross Cost Contract (GCC) special purpose vehicles (SPVs) from fiscal 2024 to fiscal 2026 for the tenders it has won under CESL-1 and CESL-2. 

JBM Auto and its subsidiaries recently bagged supply orders for approximately 5,000 electric buses from various STUs of Gujarat, Haryana, Delhi, Telangana, and Orissa among others and multiple Fortune 500 companies coupled with leading corporates of the country. 

The company has one of the largest integrated EV Bus manufacturing facilities in Asia (Outside China) which is Spread over 80 acres and has a highly automated state-of-the-art capacity of manufacturing 10,000 buses dedicated to Electric mobility. 

JBM Auto recently launched India’s first completely designed and manufactured 100 percent electric luxury coach, the JBM GALAXY at the Auto Expo 2023. 

Ashok Leyland Ltd.

On Wednesday, the shares of Ashok Leyland were trading at Rs 176.25 per share, up 0.71 percent from the previous closing price. The company has a market value of Rs 51,749 crore. 

Switch Mobility Automotive Limited (SWITCH) is a step-down subsidiary of the Company, manufacturing and dealing in Electric Vehicles. The Company is in the business of the sale & purchase of vehicles, spares, engines, materials, assets, technology, and many more. 

Ashok Leyland is the world’s fourth largest bus maker Ashok Leyland is planning to make batteries for electric vehicles. 

Ashok Leyland is making significant strides in the electric vehicle (EV) sector, with plans to launch five new EVs, including electric light commercial vehicles (LCVs) and buses. The company’s EV subsidiary, Switch Mobility, has already captured approximately 20 percent of the market share in India’s electric bus market. 

Recently, the Ashok Leyland board approved an investment of Rs 1,200 crore in its EV arm Switch Mobility for capital expenditure, R&D, and meeting operational requirements in the UK as well as in India. 

Written by Omkar Chitnis 


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