JBM Auto Inks Deal for 2,000 E-Buses with Macquarie's MUON

JBM Auto Strengthens EV Position with Major Bus Deal

JBM Auto Ltd. saw its shares climb by as much as 4% after its subsidiary, JBM Electric Vehicles Pvt. Ltd., announced a significant agreement with MUON India, a company under the Macquarie Group. This partnership marks a major step in expanding India's electric public transport infrastructure, involving the deployment of over 2,000 electric buses across the country over the next two years.

Details of the Agreement

The agreement outlines JBM's commitment to supply a diverse range of electric buses, including 9-meter and 12-meter variants, to MUON India. The deployment is scheduled to occur progressively over the next couple of years. The partnership has already commenced, with JBM receiving an initial order for 43 buses in April 2024. Demonstrating its operational efficiency, JBM began deliveries within a month and successfully completed the entire initial order by June 10, 2024. This rapid turnaround highlights the company's manufacturing capabilities, which are supported by high levels of automation and digitalized processes.

Strategic Partnership with Macquarie's Vertelo

MUON India is part of a broader initiative by the Macquarie Group, which has launched 'Vertelo', an electric vehicle financing platform in India. Vertelo aims to provide a comprehensive ecosystem for EV adoption by offering financing, fleet management, and charging infrastructure solutions. This collaboration provides JBM with a robust financial and operational partner, facilitating the large-scale deployment of its electric buses in cities across Maharashtra, Assam, and Gujarat.

Expanding the EV Ecosystem with JBM EV Ventures

In a parallel strategic move, JBM Auto has also established a new wholly-owned subsidiary, JBM EV Ventures Private Limited. Incorporated in February 2025, this new entity will focus on providing electric vehicle battery services through a subscription model. The services will include leasing and renting EV batteries, a business model designed to lower the upfront cost of EV ownership and address concerns about battery degradation and replacement.

JBM EV Ventures will also engage in the research, development, manufacturing, and sale of advanced battery technologies. This initiative signals JBM Auto's ambition to build a holistic EV ecosystem, covering everything from vehicle manufacturing to energy and battery solutions.

Financial Outlook and Market Performance

The recent developments have been well-received by the market, reflecting confidence in JBM Auto's growth trajectory. The company's Vice Chairman and Managing Director, Nishant Arya, stated that JBM Auto is targeting revenue of ₹3,000 crore from its EV business in the financial year 2025. This is a substantial increase from the ₹1,750 crore recorded in FY24. The company also aims to deliver approximately 2,500 electric buses in the current fiscal year.

Financially, JBM Auto has shown steady growth. The company reported an 8.2% year-on-year increase in consolidated net profit to ₹52.64 crore for the third quarter of FY25, with net sales rising 3.7% to ₹1,396.15 crore.

Key Deal and Financial Metrics

Market Impact and Investor Confidence

The announcement of the MUON deal had an immediate positive impact on JBM Auto's stock, which settled 3.62% higher at ₹2,098 on the day of the news. The stock has demonstrated strong performance over the last year, rising approximately 130% and gaining 30% year-to-date. This reflects strong investor confidence in the company's strategy and its leadership position in the Indian electric mobility sector. The company has clarified that there are currently no plans to list the EV business separately or bring in a strategic investor.

Conclusion: Driving India's Green Transition

JBM Auto's agreement with MUON India and the launch of JBM EV Ventures underscore its comprehensive strategy for the electric vehicle market. By securing large-scale deployment orders and simultaneously building out its service ecosystem for batteries, the company is positioning itself as a key player in India's transition to sustainable transportation. These moves not only bolster JBM's financial prospects but also contribute significantly to the national goal of reducing carbon emissions and electrifying public transit.