JSW MG Motor India to invest Rs 5,000 crore, to set up 2nd plant in Gujarat

Last year in November, China's largest automaker SAIC Motor had inked a joint venture (JV) agreement with the JSW Group to accelerate the transformation and growth of MG Motor in India. (file image)

JSW MG Motor India will invest Rs 5,000 crore to enhance production capacity and launch one new car every 3-6 months starting September, top company officials said on Wednesday.

The newly formed company, a joint venture between China's SAIC and Indian conglomerate JSW Group will also seek to create a "Maruti moment" in the new energy vehicle segment, JSW Group Chairman Sajjan Jindal said, while announcing the finalisation of the partnership.

Last year in November, China's largest automaker SAIC Motor had inked a joint venture (JV) agreement with the JSW Group to accelerate the transformation and growth of MG Motor in India.

Under the new structure, JSW will hold 35 per cent stake in the JV, Indian Financial Institutions (IFI) 8 per cent, dealers of MG Motor 3 per cent and 5 per cent earmarked for employees of the company. The rest 49 per cent will be with SAIC, thus making the JV majority owned by Indians. The JV aims to sell one million units of passenger electric vehicles in India by 2030 when the total market is expected to be 10 million units annually.

"We have announced today that we are going to have our second plant in Gujarat near our existing unit at Halol itself," MG Motor India Chairman Emeritus Rajeev Chaba said.