The facility from State Bank of India, the country’s top lender, carries a tenor of more than 10 years, according to people familiar with the matter. It will partly fund JSW Motors Ltd.’s “greenfield manufacturing facility” in the western Indian state of Maharashtra, the company’s spokesperson said in response to a query from Bloomberg News.
SBI may sell down part of the exposure to other lenders in the event of demand in the secondary loan market, the people familiar said, asking not to be identified as the details are private. A bank spokesperson did not respond to messages seeking comment.
Trade journal Autocar Professional was the first to report on the facility.
The funding is a boost for local vehicle manufacturing, and signals confidence from domestic lenders in India’s emerging EV ecosystem. The large-ticket financing is also expected to drive momentum in the credit market, where lending growth is projected to outpace deposit expansion in the fiscal year that began April 1.
CareEdge Ratings estimates credit growth will reach 13% to 14.5% in the current fiscal period, compared with deposit growth of 11% to 12% as banks prioritize steady balance-sheet expansion.
JSW Motors’ new vehicle will mark the country’s first homegrown brand in decades. Jindal’s group, which has interests spanning steel, cement and power generation, also has a joint venture with China’s SAIC Motor Corp. — JSW MG Motor India Pvt. — and a separate partnership with Chery Automobile Co. for new-energy vehicles.JSW Motors is focused on building a strong presence in the new energy passenger vehicle segment, the spokesperson said, adding that details about product lineup and launch timelines will be announced at the appropriate time.
India’s electric and hybrid vehicles sector is expanding rapidly as automakers ramp up production to capitalize on government incentives and surging consumer demand for clean mobility.