The joint venture between Indian conglomerates JSW Group and MG Motor expects to sell one million electric vehicles in India by 2030 and capture a third of the market, a JSW executive said.
The two companies said the JV plans to enter the premium passenger vehicle segment with the launch of a new model, a sports car named ‘Cybuster EV’.
Rajeev Chaba, Managing Director, MG Motor India, said at a media event for the launch that the two companies will invest a total of Rs. 50 billion (USD 602 million) will be invested in JVs.
Meanwhile, JSW Group Chairman Sajjan Jindal said he hopes the JV will transform India’s EV sector in a similar way to how Maruti Suzuki disrupted the automobile market 40 years ago with “highly efficient and lightweight cars”.
Things changed in India last week when New Delhi cut import taxes on some EVs from automakers that have pledged to invest at least $500 million (about 4.016 trillion rupees) and begin manufacturing locally within three years.
The policy change is a big win for Tesla, while analysts said the impact on the company’s sales in India could be largely limited to manufacturers of more expensive vehicles.
Electric vehicles accounted for about 2% of total automobile sales in India in 2023, and the government is targeting 30% by 2030.
MG Motor, owned by China’s SAIC Motor, has two electric models in India – the compact Comet EV and the SUV ZS EV.
The partnership with JSW will help MG Motor increase its annual production capacity from 100,000 units to 300,000 units, the companies said in a statement, without giving a target date.
SAIC Motor and JSW announced the establishment of a JV in December last year, and the Indian group holds a 35% stake.
India’s competition regulator had approved JSW’s proposal to acquire a 38% stake in MG Motor India in January.
JSW’s companies include JSW Steel, India’s largest steel manufacturer across various segments.
© Thomson Reuters 2024
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