Jupiter Wagons Ltd (JWL), which recently unveiled two light commercial electric vehicles through its arm Jupiter Electric Mobility (JEM), is hopeful of going in for the commercial launch of the product by the third quarter of calendar year 2023. JEM has entered into a strategic alliance with North America-based GreenPower Motor Company specialising in commercial electric vehicles in the passenger transportation and freight transport markets.

According to Vivek Lohia, Managing Director, Jupiter Wagons, while the smaller vehicle of 2.2 tonnes would be manufactured at its facility in Indore, the larger vehicle of 7 tonnes capacity would be initially assembled in its unit. However, the company plans to undertake end-to-end production in India and establish service facilities in key markets, in order to expand into the after-sales requirements for a seamless customer experience.  

The CEVs will cater mainly to the needs for the last-mile delivery, tapping the major metros Mumbai, Delhi-NCR, Pune, and Bangalore initially. “We hope to be able to start delivering the 2.2 tonnes vehicle by August this year and the 7 tonnes vehicle should be available by the end of this year. We currently have a capacity of producing 5,000 vehicles at our facility but we are looking to expand our capacity so as to be able to produce close to 50,000 vehicles moving forward,” Lohia told businessline.

CAGR of 68 per cent

Electric vehicles accounted for a little over 1 per cent of total vehicle sales and is expected to account for 39 per cent of total automotive sales by calendar year 2027 growing at a CAGR of around 68 per cent over the next five years, the company said in its latest investor presentation.

The majority growth in EVs is expected to come from the travel segment, especially electric three-wheelers and electric two-wheelers due to fixed duty cycle and companies (e-commerce, groceries, shops) committing to going completely electric in their last-mile deliveries.

Highlighting the opportunity in developing the segment, he said, India has a huge potential for the EV business both from the cost benefits and sustainability point of view. This will lead to EVs eventually taking over the ICE market. The government’s vision of creating a green future and favourable policy support will only boost this segment further.

According to the Centre for Energy Finance (CEEW-CEF) study, the EV market is estimated to reach ₹50,000 crore in India by 2025. “Initially we will be working with fleet aggregators as they have the infrastructure to set up charging stations. So initially we will be looking at the B2B segment but as the market develops and charging stations are set up we could look at the B2C segment,” he said.

The company plans to have a complete bouquet of electric vehicles from LCV, MCV, HCV, and bus in the future.

Strong order book

Jupiter Wagons, which provides comprehensive mobility solutions encompassing rail, road and marine transportation, has an order book of close to ₹6,000 crore at present, Lohia said.

There is a strong demand for wagons from Indian Railways and this would further help to strengthen its order book. “There is requirement for close to 1,00,000 wagons from Indian Railways so we see a huge opportunity in the segment,” he said.

The company registered 407 per cent growth in net profit at ₹46 crore for the quarter ended December 31, 2022, as against ₹9 crore in the same period last year on the back of higher sales.

Revenue increased by 116 per cent at ₹644 crore during the quarter under review while EBITDA margin was up at 12.8 per cent (8.1 per cent).

According to Lohia, growth momentum remains strong in established businesses as it has been steadily ramping up monthly wagon production and witnessing improving traction in its business line of truck bodies. It is also focused on scaling up newer business lines of high-speed braking and container manufacturing.

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