A joint venture between Indian conglomerate JSW Group and MG Motor expects to have sold 1 million electric vehicles in India by 2030 and corner a third of the market, a JSW executive said.

The two companies said that the JV plans to move into the premium passenger vehicle segment as they launched their new model, a sports car named the “Cyberster EV”.

Rajeev Chaba, MG Motor India’s managing director, said during a media event for the launch that the two firms would inject a total of Rs. 50 billion ($602 million) into the JV.

Meanwhile, Sajjan Jindal, JSW Group chairman, said he hoped the JV will transform India’s EV sector in a similar way to Maruti Suzuki disrupting the automotive market 40 years ago with “very efficient, very lightweight cars”.

India’s landscape shifted last week as New Delhi cut import taxes on some EVs for carmakers that commit to invest at least $500 million (roughly Rs. 4,160 crore) and start local manufacturing within three years.

The policy change is a big win for Tesla, while analysts said the impact on sales for Indian players could largely be limited to manufacturers of pricier vehicles.

EVs made up about 2 percent of total car sales in India in 2023, with the government targeting 30 percent by 2030.

MG Motor, which is owned by China’s SAIC Motor, has two electric models in India: the small Comet EV and the ZS EV, which is an SUV.

The partnership with JSW will help raise MG Motor’s annual production capacity from 100,000 to 300,000 units, the companies said in a statement, without giving a target date for this.

SAIC Motor and JSW announced the formation of the JV in December last year, with the Indian group holding a 35 percent stake.

India’s competition regulator approved JSW’s proposed acquisition of a 38 percent stake in MG Motor India in January.

JSW’s companies includes India’s largest steelmaker by capacity JSW Steel among others in various sectors.

© Thomson Reuters 2024

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