Conglomerate JSW Group and SAIC-owned MG Motor formed a joint venture to manufacture new electric vehicles (NEVs) in India, with plans to launch a new product, including NEVs, every three to six months beginning September with two new products to be launched this calendar year.
The JV, called JSW MG Motor India Pvt Ltd, aims to become a market leader in the NEV category with an extensive product portfolio.
The company will operate in Halol, Gujarat with a focus on producing NEVs. This will help ramp up MG's production capacity from 1 lakh to 3 lakh units per year.
JSW Cement Managing Director Parth Jindal, speaking to CNBC-TV18, said that the total investments made in the JV is Rs 5,000 crore. He also said that the chairman would be from JSW Group, and the board would be from SAIC.
"Govt’s EV policy looks attractive for the premium EV segment, once we get some clarity we will decide on the next course of action," said Parth Jindal.
Talking further about the plans for the wider group formed jointly, Parth Jindal said, "MG India procure very little steel from the JSW group. Going forward the total steel for MG will come from JSW Steel."
Parth Jindal added: "Price point would be a very big disruptor in the market. We will have products in the mainstream, premium. The combination will allow us to launch a new product every three to six months. As economy grows people will upgrade. MG has a slew of products globally in premium portfolio and we plan to bring those into India."
The JV also unveiled its first premium innovation, the Cyberster, marking a significant stride in the realm of pure electric premium cars.
Moreover, sources familiar with the developments also told CNBC-TV18 that Cyberster may be priced at Rs 50 lakh.
The JV aims to sell 1 million electric vehicles in India by 2030, as disclosed by a JSW Group executive. The joint venture intends to enter the premium passenger vehicle segment, as outlined in a joint statement by the companies.
Also read: JSW Steel, Tata Steel, JSPL to invest billions to meet buoyant local demand
MG Motor has two electric models in India: the small Comet EV and the ZS EV, which is an SUV.
This announcement coincides with a shift in India's electric vehicle landscape. Recently, India reduced import taxes on specific electric vehicles for carmakers investing at least $500 million and starting domestic manufacturing within three years.
This policy change is beneficial for Tesla, facilitating its entry into the Indian market. Despite potential increased competition, analysts suggest that the impact on domestic vehicle sales may be limited to manufacturers of higher-priced vehicles. Electric vehicle sales comprised approximately 2 percent of total car sales in India in 2023, with the government aiming for a 30 percent share by 2030.
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