JBM auto to enter global e-bus mkt with first launch in Germany this month

JBM Auto, a $3 billion global Indian conglomerate, is preparing to enter the international electric bus (e-bus) market with its first launch of a city bus, Eco-life, in Germany this month, said vice-chairman and managing director Nishant Arya.

The launch comes at a time when India and the European Union (EU) are negotiating a free trade agreement (FTA), anticipated to conclude by the end of this year.

 

JBM plans to launch several global products in regions, including North America, South America, Southeast Asia, the Asia Pacific, West Asia, and African countries this year.

 

With entering Germany, the Indian automaker plans to capture a substantial share of the European market, which currently sees an e-bus penetration of 30,000 units annually.

 

“We’ll be launching our first of many global products in Germany next month. Our city bus, Eco-life, is equipped with cyber security features and meets Western standards, incorporating European specifications such as lane assistance and pedestrian alignment safety features, among others. We will be the only Indian company venturing into the e-bus segment in this way,” Arya told Business Standard.

 

When asked about the market share JBM aims to capture through these global product launches, Arya said this will mark its first of three to five global product launches scheduled for this year.

 

He added, “We will define our export market soon, depending on demand and offtake.”

 

He emphasised that the initial goal is not to gain market share but to establish the product in the region. “Once the product is established, it becomes an automated process and people will naturally start coming to us,” he added.

 

“It will still be at least a year before we can establish a firm presence in the market with our new product. Launching a product now and expecting the India-EU FTA to have an immediate effect is impractical. We can assess the impact once we start exporting and our buses are operational,” Arya said.

 

Nevertheless, recent developments indicate a growing interest from Indian companies.

 

“Automakers like JBM are already launching their products, which reflects a positive outlook towards the FTA. We are optimistic about the India-EU FTA and have already established our office and formed global teams in the region. This demonstrates strong potential for conducting business there. It is reasonable to expect that benefits from the FTA will eventually support us,” he added.

 

In the case of bus launches, 90 per cent of the offtake comes from government contracts.

 

Once a company wins a tender, there is a minimum waiting period of 6-8 months from receiving the letter of intent (LoI) to launch or deploy the product.

 

“We can’t promise that we will supply the product in 6 or 10 months, but it is safe to say that those buses will be operational in that region within a year,” Arya said.

 

The product has been developed based on extensive research that included feedback from potential customers in the European market.

 

“We will showcase the product at an exhibition, and after its launch, we expect enquiries to increase, allowing us to start supplying from India based on demand,” he added.

 

Arya added that moving abroad involves adhering to certification and safety norms and meeting higher quality standards than those in India.

 

He said, “For any company looking to make a product that not only stands out but also meets fundamental requirements, we conducted interviews with potential customers and held test drives of our bus at various locations in Europe. This helped assess performance, as it was specifically designed for those conditions.”