JSW-MG Motor to import high-end EVs, aims for 90% localisation in mainstream cars

India’s new electric vehicle manufacturing policy offers duty concessions from 100 percent to 15 percent for fully built electric cars in exchange for a minimum investment commitment of Rs 4,150 crore.

The JSW-MG Motor India joint venture is likely to apply for the new electric vehicle manufacturing policy. Sources have suggested that the joint venture is considering importing high-end premium electric cars into India.

The JV plans to launch a mainstream or mass-market vehicle before the festive season in 2024 and a high-end electric convertible called the Cyberster in early 2025. Given the low volumes and a niche market for a car priced above Rs 50 lakh, the Cyberster is likely to be imported into India. However, MG Motor India did not respond to CNBC-TV18’s queries, and the JSW Group did not comment.

India’s new electric vehicle manufacturing policy offers duty concessions from 100 percent to 15 percent for fully built electric cars in exchange for a minimum investment commitment of Rs 4,150 crore. The applicant must submit a bank guarantee of an equivalent amount, which will be forfeited if the company does not achieve 25 percent domestic value addition and commence manufacturing within three years. Every applicant must achieve a 50 percent domestic value addition within five years of entering India.

Sources have also suggested that the JSW Group and MG Motor India JV will likely set up two verticals, one for mainstream cars and the other for premium cars. The JV aims to localise and achieve 90 percent of total sales volumes from mainstream cars priced under Rs 20-21 lakh. Premium or high-end cars are expected to contribute 10 percent of total sales volumes.

The joint venture company is expected to apply for the PLI Automotive and Battery PLI schemes as well.

China’s SAIC, which owns MG Motor’s global subsidiaries, has plants in Thailand, Indonesia, China, and India. SAIC is also considering setting up a plant in Europe. If the joint venture decides to import fully built electric cars, it could consider importing from any of the jurisdictions where it has plants.