A groundbreaking partnership between the JSW Group and MG Motor India is set to revolutionize the automotive industry, promising the launch of a new ‘new energy’ vehicle every three to four months starting September, announced a senior executive.
With a monumental investment of $750 million (approximately ₹5,000 crore), the joint venture aims to produce an impressive 300,000 units annually, emphasizing increased localization of parts and the integration of cutting-edge technology for forthcoming products.
Positioned as a formidable contender in the Indian automotive landscape, the newly formed entity, JSW MG Motor India Pvt. Ltd., will witness JSW Group securing a notable 35% stake, with Indian investors collectively holding a majority 51% stake.
JSW Chairman, Sajjan Jindal, expressed fervent enthusiasm, revealing plans to introduce a series of pioneering vehicles that will redefine India’s automotive sector while also catering to discerning international markets, marking a significant stride towards his ambitious vision.
Setting the stage for a dynamic transformation, the collaboration will witness MG vehicles being retailed under the esteemed MG brand, bolstering MG Motor’s strategic positioning in the Indian market under the astute leadership of Chairman Emeritus, Rajeev Chaba.
Notably, the government’s recent policy announcement regarding reduced import duties for premium electric vehicles has stirred industry interest, prompting a cautious yet optimistic approach from key stakeholders, including Parth Jindal, Managing Director of JSW Cement.
Anticipating a significant uptick in the adoption of electric vehicles (EVs), the joint venture plans to introduce plug-in hybrid models with a 150 km range, bridging the gap until comprehensive EV charging infrastructure is fully established across India.
Eyeing a transformative shift akin to the EV boom witnessed in China, the JSW-MG Motor India JV aims to capture a substantial market share, targeting 33% EV penetration by 2030 and an impressive milestone of 1 million EV sales within the decade.
Despite a temporary dip in global EV sales in early 2024, industry leaders like Rajeev Chaba remain steadfast in their conviction, asserting that underlying demand for EVs remains robust and poised for sustained growth, reflecting a promising outlook for the future.