JSW Group and MG Motor Joint Venture Aims for 1 Million Electric Vehicles Sold by 2030

JSW Group and MG Motor Joint Venture Aims for 1 Million Electric Vehicles Sold by 2030/Reuters

VoM News Desk | March 23, 2024 | 11:17 PM IST | Tech | Follow on Google News

JSW Group and MG Motor Joint Venture Aims for 1 Million Electric Vehicles Sold by 2030/Reuters

JSW Group and MG Motor Joint Venture Aims for 1 Million Electric Vehicles Sold by 2030

A joint venture between Indian conglomerate JSW Group and MG Motor sets ambitious goals, eyeing the sale of 1 million electric vehicles (EVs) in India by 2030, capturing a significant portion of the market, revealed a JSW executive.

The partnership unveiled plans to enter the premium passenger vehicle segment with the launch of their latest model, the “Cyberster EV,” a sports car, during a media event.

Rajeev Chaba, MG Motor India’s managing director, disclosed that the JV would infuse a total of Rs. 50 billion ($602 million) into the venture.

JSW Group chairman, Sajjan Jindal, expressed optimism about the JV’s potential to revolutionize India’s EV sector, drawing parallels to Maruti Suzuki’s impact on the automotive market decades ago with its efficient, lightweight cars.

Last week, India announced a significant policy shift, slashing import taxes on certain EVs for manufacturers committing to invest at least $500 million and commence local manufacturing within three years, favoring players like Tesla.

While analysts anticipate Tesla’s dominance, the policy change is expected to have a limited impact on sales for Indian manufacturers, particularly those focusing on pricier vehicles.

EVs accounted for 2 percent of total car sales in India in 2023, with the government aiming for a 30 percent share by 2030.

MG Motor, a subsidiary of China’s SAIC Motor, currently offers two electric models in India: the Comet EV and the ZS EV SUV.

The collaboration with JSW aims to boost MG Motor’s annual production capacity from 100,000 to 300,000 units, facilitating expansion plans.

The formation of the JV was announced in December last year, with JSW Group holding a 35 percent stake. India’s competition regulator approved JSW’s acquisition of a 38 percent stake in MG Motor India in January.

JSW Group encompasses various sectors, including India’s leading steelmaker, JSW Steel, among others.

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