Indian companies must take a leadership role in auto sector: JSW Group's Sajjan Jindal

Jindal-led JSW Group aims to disrupt the new energy passenger vehicle segment in India with plans to price electric

The JSW Group has lined up $70 billion of capital investments in sectors steel, cement, energy and paint besides an ambitious foray into automobiles. In an interview with Moneycontrol, Sajjan Jindal, Chairman and Managing Director, JSW Group spoke about the group’s business roadmap, his passion for sports and how the Jindal brothers compete in business while maintain family ties. Edited Excerpts:

Mr. Jindal, welcome to Moneycontrol. There is a lot of talk about private sector capex in India. Your group has announced plans for $70 billion of capex. Could you break this down across your various businesses?

Thank you for having me. When we talk about capex, the industries we are in—steel, cement, renewable energy, and thermal energy—are all very capital-intensive. Paint and auto are less capital-intensive by comparison, but we are heavily invested in industries that require significant financial commitments.

The biggest allocation of our capex is in JSW Steel, which consumes around ₹25,000 crore annually. Going forward, however, renewable energy and thermal energy will require even more capital investment.

Let’s focus on steel for a moment. You’ve announced plans to expand from 29 million tons to 50 million tons by the end of the decade. Is there sufficient demand to justify this growth? How do you plan to fund this expansion?

We recently commissioned an additional 6 million tons of capacity, bringing us to 35 million tons. By 2030, our target is to reach 50 million tons. Over the last two-and-a-half years, Indian steel demand has grown at an impressive rate of over 10% annually. Even with new capacities being added across the industry, demand could still outpace supply, leading to imports.

As for funding, the group’s strong financial structure supports these investments, ensuring that we are prepared to meet the growing demand.

You’ve been vocal about Chinese steel imports entering India through FTA routes. Could you elaborate on the issue and your discussions with the government?

China has significant overcapacity in steel production, and the amount they export matches India’s entire production. Although Chinese steel faces tariffs in countries like the U.S. and Europe, it enters India indirectly through nations like Japan, Korea, and Indonesia, with which we have FTAs. These countries import Chinese steel for their domestic needs and then export their own steel to India duty-free.

We’ve represented this issue to the government, and they understand the problem. They are working on finding a solution, but no decision has been made yet.

How has the U.S.’s tariff strategy impacted your steel business?

JSW Steel does not export steel from India to the U.S. anymore due to the 25% tariff imposed during President Trump’s first tenure. However, we have a manufacturing plant in the U.S. where we produce and sell steel locally. While the U.S. is a high-cost economy, the tariffs have enabled their steel industry to modernize and revive.

Let’s shift to your foray into automobiles. Your group has been linked to several partnerships, including Volkswagen and MG Motors. Could you share the latest developments?

Discussions with Volkswagen about acquiring their Chennai plant did not progress, as they decided to reopen the facility themselves. With MG Motors, we have made significant progress. This venture aligns with my passion for automobiles—a dream I’ve had since childhood.

Through MG Motors, we are focusing on new energy vehicles, though a few models may have internal combustion engines (ICE). Separately, we are also working on a JSW Auto project to develop state-of-the-art EVs. This project, under a new company, will take about two years to materialize.

Read More: China exploiting FTA route to dump steel in India: Sajjan Jindal

Your joint venture partner in MG Motors, SAIC, is a Chinese company. Given India-China tensions, how sustainable is this partnership?

While there are geopolitical issues, we haven’t faced restrictions from SAIC regarding technology or operations. However, the Chinese government is reportedly imposing limitations on sharing technology with countries like India and the U.S.

Our plan is to increase the Indian ownership of MG Motors, with Indian investors collectively holding 65% of the company and SAIC reducing its stake to 35%. This will ensure that MG Motors operates as an Indian company, leveraging Chinese expertise in the short term while building local capabilities.

Would you consider partnering with another technology provider in the future?

The possibility remains open. As we learn and gain expertise in the automobile business, we aim to take greater control and explore partnerships that align with our vision.

What excites you most about the group’s diversification into automobiles?

It’s a passion project for me. With the transition to EVs and new technologies in the auto sector, I felt it was the right time to pursue this dream. Building cars has always fascinated me, and I’m thrilled to finally bring this vision to life through our ventures.

You’ve mentioned changing the landscape of the Indian auto industry. Can you elaborate on your plans for this transformation?

Absolutely. My goal is to be very aggressive in the auto industry. I believe that Indian companies must take a leadership role in this sector. Currently, the majority of production is controlled by companies like Maruti, Hyundai, and Kia, which together account for around 65-70% of the market. My ambition is to change this by producing high-quality, affordable cars for Indian consumers at large capacities. The idea is to offer value without compromising on quality. If we can do that, we’ll not only challenge the dominance of foreign brands but also ensure that Indian companies lead this industry, just like the Chinese have overtaken European companies in their domestic auto industry. While I’m not driven by nationalism alone, I strongly believe in India's potential to lead.

Will your future vehicles primarily be electric? What kind of technologies are you planning to adopt?

Yes, the future of our vehicles will predominantly be electric. Our focus will be on new energy vehicles, primarily EVs, but also plug-in hybrids and range extenders. We aim to produce vehicles that are not just sustainable but also meet the needs of the Indian market. It's about building cars that are high-quality and affordable while also being environmentally friendly. As for the technology, we plan to source it from China, as they are leaders in new energy vehicle technology. Over time, we will establish our own R&D and design centers to indigenize and localize the technology, eventually making it more aligned with Indian needs.

Could you share more details about your new company and the potential partnerships or joint ventures you're considering?

We’ve created a new entity that will be independent of MG India, which will continue to grow separately with our partner SAIC. Our new company will compete in the market but not with MG India. The new energy vehicle technology we need largely comes from China, as Chinese companies have invested heavily in it. Over time, our plan is to indigenize and localize this technology, but for now, we will work with multiple partners from China. This could also include other collaborations, but we’re committed to building an independent business.

Are there any projections for market share or sales for your new business?

It’s too early to comment on specific projections, as the auto industry is very tough and full of well-established players. MG has done a good job in carving out its niche in India, and their products have been well received. If MG could capture 5-7% of the market share in the next three years, I would consider that a satisfying achievement. But it's important to remember that we’re just getting started, and success will depend on the products we bring to the market and how they resonate with consumers.

What are your thoughts on Tesla’s potential entry into the Indian market?

The Indian government did offer Tesla a red carpet, tweaking policies to attract them, even allowing them to import fully-built cars. However, Tesla has shown limited interest. I think Elon Musk is quite busy with his ventures in space and other areas, and India is still considered a distant market. For Tesla, India may not offer the volume needed to make money, especially given that it's a highly competitive and price-sensitive market. In my opinion, Tesla might struggle to succeed here. But of course, Elon may have a different perspective.

You've also shown interest in renewables and green hydrogen. How do you see JSW Energy’s future in these areas?

I strongly believe that renewables will see growth in India once they become economically competitive. In the past, when thermal power was at Rs. 4, renewable energy was far more expensive, but with prices now coming down to Rs. 2.5-3, it’s time to invest. I believe that once renewables are both economically viable and green, they will become a critical part of India’s energy future. We are investing heavily in solar and wind, especially in dry regions like Rajasthan, Gujarat, and Maharashtra. As for green hydrogen, it's still early. The cost is high at around $4, but we’re setting up a small 25-megawatt experimental plant to see how it performs. Once hydrogen becomes cost-effective (below $2), we’ll invest more aggressively.

What about using green hydrogen in steel production? Will JSW be incorporating hydrogen into its new steel capacity?

Yes, we plan to set up a 10-million-ton steel plant as a subsidiary of JSW, where we’ll be bringing in other investors. The plant will produce green steel, primarily for the Western world, since the demand for green steel in India is still uncertain. Initially, the plant will operate on natural gas, but our goal is to reduce CO2 emissions. A conventional steel plant in JSW emits about two tons of CO2 per ton of crude steel, but with our green steel plant, we aim to bring this down to 0.6 tons per ton of crude steel. Eventually, as we inject hydrogen, we hope to reduce emissions even further, though the cost of hydrogen may make it a more expensive process. But this plant will mostly cater to the export market, particularly for the Western world.

You’ve also entered the paint industry. Why this diversification, and how is it progressing?

The paint business was our first foray into the B2C space. As a group, we’ve been largely in B2B sectors like steel and energy, and we wanted to explore how the consumer market works. The paint business is relatively low-capex, so it seemed like a good opportunity. So far, the response has been encouraging, and we’ve quickly reached a top line of around Rs. 2,500 crore. Our goal is to reach Rs. 5,000 crore in the next two to three years. Consumer businesses are definitely more challenging than B2B, but we’re committed to this and are seeing good progress.

Let's talk about your passion for sports. How do you see your investment in Indian sports shaping the future?

Sports is a big passion for me, and it’s not just about business but also about giving back to the community. We’ve been investing in Olympic sports, and I believe as India develops, we must not be just a cricketing nation. Football, hockey, and other sports must also get their due. We’ve set up several high-performance centers across India in states like Himachal, Manipur, Odisha, and others, where athletes are being trained. We’re also bringing in foreign coaches to ensure world-class training. Though we were disappointed by the performance in the last Olympics, it’s encouraging to see that many of our athletes came close to winning medals, finishing fourth in their events. This shows that with continued support and investment, we can do well in future Olympics. The key is that corporates are increasingly stepping up to invest in sports, which will help develop our athletes further.

With your brother Naveen running JSPL and other family members involved in large businesses, how does the relationship work within your family?

My father was very astute in recognizing that we, as aggressive Haryanvis, should be independent in our businesses. We don’t sit on each other’s boards or interfere in each other’s companies. We compete in the marketplace but remain brothers at the dining table. This approach has worked well for us, and I think it’s a testament to our father’s wisdom in ensuring we stay independent yet supportive of each other. Our relationship is one of healthy competition, and it has allowed each of us to grow our businesses while maintaining strong familial bonds.