JSW Group's Rs. 25 billion (US$ 261.5 million) investment in its Chhatrapati Sambhajinagar manufacturing facility is expected to support up to Rs. 120 billion in top-line revenue at full capacity, which is expected to take five to seven years to achieve.

The plant has an initial installed capacity of 15,000 heavy commercial electric vehicles, with production designed to be fungible between trucks and buses. Based on an average selling price (ASP) of approximately Rs. 8 million for a heavy commercial EV, production at full capacity would correspond to approximately Rs. 120 billion in primary vehicle revenue.

"We have invested Rs. 25 billion in this facility, which has the capacity to make 15,000 units, which is completely fungible and flexible between the buses and the trucks," said Parth Jindal of JSW Group. "With average selling prices roughly around Rs. 8 million, this factory potentially will be able to do a top line of close to Rs. 120 billion."

After-sales revenue to add Rs. 20-30 billion annually

In addition to vehicle sales, after-sales services are expected to generate an additional 20% to 30% in revenue, equivalent to Rs. 20 billion to Rs. 30 billion annually.

Capacity utilisation timeline: Five to seven years

Reaching peak output in the commercial vehicle (CV) industry requires a multi-year production ramp-up. In automotive manufacturing, OEMs typically take four to seven years to reach high capacity utilisation due to supply chain development, fleet validation cycles and production learning curves. JSW CEO Sumit Mittal outlined an FY30-FY32 timeline for reaching 70% to 75% capacity utilisation.

"That will take anything between 5 to 7 years to reach," Sumeet said regarding full-capacity revenues. "I have never seen any OEM company reach a 75% capacity utilisation in the first year... In the next 5 years, we are expecting to hit 70-75% capacity utilisation."

Brownfield expansion planned to scale capacity to 25,000 units

A facility expansion is planned. Once production reaches 50% to 70% capacity utilisation, JSW will initiate a brownfield expansion within the existing facility footprint to increase capacity to 25,000 units before additional land is required.