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. JSW Cement Managing Director Parth Jindal, speaking to CNBC-TV18, said that the total investments made in the JV is Rs 5,000 crore.
Sajjan Jindal, expressing determination to disrupt the sector, outlined plans to ramp up MG's production capacity from 1 lakh to 3 lakh units per year, underscoring the company's commitment to meeting the burgeoning demand for sustainable transportation solutions.
The JV also unveiled its latest innovation, the Cyberster, marking a significant stride in the realm of pure electric premium cars.
The JV aim 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.
MG Motor offers two electric car models in India: the Comet EV, a compact car, and the ZS EV, 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.
Parth Jindal: Total investments made in the JV is Rs 5,000 crore
(With inputs from Reuters)
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