JBM Auto rises 23% in 3 days on plan to deliver 2,000 e-buses in FY24
The car company's shares traded higher for the third day in a row, rising 23 percent during the period, after the company's management said it aims to supply 2,000 e-buses in the financial year 2023-24 (FY24).
BSE has asked JBM Auto for clarification regarding this development which appeared in CNBC-TV18. The answer is awaited.
At 10:44 am; the stock was trading 3 percent higher at Rs 1,670 on the BSE. In comparison, the S&P BSE Sensex fell 0.67 percent to 71,787.
JBM Auto is engaged in the automotive sector that produces and sells sheet metal components, tools, dies and molds and bushings, including the sale of spare parts, accessories and maintenance contracts for buses.
The company is also an Original Equipment Manufacturer (OEM) as it deals in the production of passenger buses.
The Indian electric bus market has witnessed rapid growth over the past two years, driven by demand aggregation, standardization efforts, product developments and improved charging infrastructure.
The government's push to electrify fleets and efforts by leading OEM players such as JBM Group to develop integrated electric vehicle (EV) ecosystems have been key drivers of this growth.
To meet the rising domestic demand for electric buses, local companies are partnering with established foreign players.
Cities are adopting different models to reduce electrification costs, including offering upfront subsidies to reduce bus costs.
Because aggregating demand brings economies of scale, the electric bus market is expected to see high penetration over the next five to seven years, JBM Auto said in its annual report for fiscal year 2023.
The National e-Bus Program (NEBP), which aims to deploy 50,000 electric buses across India, and the FAME-III policy framework expected in FY24 will encourage green public transport and the development and expansion of an EV ecosystem across the country. company said.
JBM Auto and its subsidiaries have secured orders for nearly 5,000 electric buses for supply to various State Transport Undertakings (STUs) in the states of Gujarat, Haryana, Delhi, Telangana, Orissa and several Fortune 500 companies in association with leading companies from the country.
For these orders, various applications will be supplied such as city buses, staff buses, asphalt buses, etc. in both 9 meter and 12 meter categories, the company said.
First print: January 2, 2024 | 10:58 am IST