Why did Olectra Greentech and JBM Auto Jump 6% this week?

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Olectra Greentech and JBM Auto Jump 6% this week

In a big jolt to the electric commercial vehicle segment, the Indian Government launched a new scheme - The PM-eBus Sewa - that plans to deploy 10,000 e-buses in 169 cities via Public Private Partnership (PPP). 

The plan will upgrade 181 cities' public transport infrastructure with an estimated cost of Rs. 57,613 crores, creating employment for 45,000+ people.  

Share prices of Olectra Greentech and JBM Auto - two companies pioneering the electric bus service business have jumped over the past months over multiple development schemes around electric mobility announced by the central government. 

Under the FAME 2 Scheme which intends to support 7,090 e-buses, 5lakhs e-3 Wheelers, 55,000 e-4 Wheeler Passenger Cars, and 10 lakhs e-2 wheelers to promote the adoption and manufacturing of electric and hybrid vehicles, clean and green transportation options, reduce air pollution in the country. The Ministry of heavy vehicles reduced the 40% maximum incentive cap to 15%. This change doesn't apply to three-wheelers or buses. Also, they reduced the money you can get back—from Rs 15,000 for every kWh of battery power to just Rs 10,000 per kWh. These new rules started on June 1, 2023.

The Production Linked Incentive (PLI) Scheme, allocated ₹25,938 crores, aims to fuel domestic manufacturing of electric vehicles and their components. 

Olectra Greentech: Company Overview and Financial Highlights

Olectra GreentechApril-June 2023April-June 2022YoY Growth
Revenue from e-bus182.32255.8128.73%
Number of buses sold ( units)16978116.67%

(In Crores)

Olectra Greentech is India's largest electric bus manufacturer. It has manufacturing facilities in Hyderabad and has deployed all variants of electric buses in India. It is also expanding its product line to electric trucks and electric tippers.

During the first quarter that concluded in June 2023, the electric vehicle (EV) manufacturing company generated a revenue of Rs 182.32 crores from its electric bus sales. This figure showcases a notable year-on-year growth of 28.73%, relative to the Rs 255.81 crores in revenue that the company had earned in the same period of the previous year, June 2022.

Olectra Greentech sold 169 units, more than doubling the sales figure of 78 units recorded in June 2022. This robust performance demonstrates a significant year-on-year growth rate of 116.67%.

Olectra Greentech offers a diverse range of buses, each designed to suit different needs. The Olectra V2, with a length of 7 meters, has a range of 150 km. The Olectra iX, which is 9 meters long, offers a travel range between 180 km and 220 km. The Olectra X2, stretching 12 meters in length, boasts a range of 200 km to 300 km. Lastly, the Olectra CX2, also measuring 12 meters, is designed to cover a distance of 300 km

JBM Auto Limited:  Company Overview and Financial Highlights

JBM Auto LimitedApril-June 2023April-June 2022YoY Growth
Net sales946.22865.039.39%

(In Crores)

JBM Auto Ltd has streamlined its operations across the value chain, expanded into new sectors, manufactures its own buses, and provides sustainable solutions through its electric vehicle ecosystem business segment.

JBM Auto is ready to deliver 5,000 electric buses to its customers. The company has the capacity to manufacture 20,000 electric buses and will invest more if needed. The buses will benefit over 3 lakh people.

In the first quarter of 2023, the electric vehicle manufacturer reported net sales of Rs 946.22 crores, marking a 9.39% year-on-year growth compared to the Rs 865.03 crores generated in the same period of the previous year, June 2022.

Share price performance:

Companies1 Month1 Year5 Years
Olectra Greentech Ltd8.83%91.49%355.92%
JBM Auto Ltd0.18%238.69%879.81%

From the day the news was released until August 18th, shares of Olectra Green Ltd and JBM Auto Ltd rallied by 2.27% and 3.23%, respectively, with market capitalizations of Rs 9,791.82 crores and Rs 16,419.80 crores.