Sajjan-Jindal led JSW Group aims to disrupt the new energy passenger vehicle segment in India with expectations to price the electric vehicle at least at the same price as a fuel-powered vehicle, Parth Jindal, the 33-year-old scion of the $23-billion revenue JSW Group, said on March 20 after announcing the joint venture with SAIC-owned MG Motor to manufacture new electric vehicles (NEVs) in India.
"With MG, my dream is that we will create a Maruti Moment," Sajjan Jindal said while announcing joint venture. The JV company, JSW MG Motor India, aims to sell one million units of passenger electric vehicles in India by 2030.
"I think it's going to be a very big disruptor in the category," Jindal said.
The group is betting on the surging middle class income and cater to the consumers with attractive prices achieved through localized supply chain and leverage from the group's subsidiaries such as JSW Steel. "As we move forward the entire quantity of steel for JV company will be coming from JSW Steel," Parth Jindal said during a press conference.
Asked about the pricing, Parth said, "It will be interesting when we disclose it. It is not in the premium bracket. It is mainstream. We want to sell a million cars, we cannot be premium."
JSW Group and other Indian shareholders have invested Rs 5,000 crore in the JV to enhance capacity expansion and introduction of new car models. Production capacity of MG Motor's Halol facility will be increased to three lakh vehicles annually from the current capacity of one lakh vehicles.
The chairman of the new company will be from JSW Group and board of the company will be jointly managed by JSW and SAIC.
Lower costs strategy
The group aims to lower the production costs for EVs by enhancing local sourcing via a strong supply chain while also leverage from its subsidiaries.
Recently, the group received a nod from the Odisha government to set up an EV components manufacturing complex consisting of copper smelter and lithium smelter, with an investment of Rs 40,000 crore. The conglomerate now aims to bring down the cost of production for its new EV venture by sourcing components from the Odisha plant.
"Obviously products from the investment we make in Odisha will mostly cater to this JV. So in terms of batteries we make, is for JSW MG Motor," Parth said. "We hope to bring down the cost of the product, localizing in depth, so that we can really bring you NEV vehicles at the right price point, if not low, at least at the same price as ICE."
The group aims to localize the cell battery manufacturing in the next 18-24 months, and expects to capture 33 percent of market share in the EV segment by 2030.
Also read: JSW Group looks to participate in lithium mines auction: Sajjan Jindal
Premium cars to Indian market
The group also aims to bring MG Motor's premium car models along with the NEVs.
"I think, as you can see, India is realizing there is there is more disposable income. As our economy grows, people will keep upgrading their choices. And MG has a slew of products available globally. So we will have products in the mainstream, we will have products in the premium. And a combination of the two will allow us to launch a new product every three to six months into the Indian market," Jindal said.
Meanwhile, the conglomerate expects to launch its first plug-in hybrid electric vehicle (PHEV) by 2025.
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