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In a bold move towards electrification, Indian conglomerate JSW Group and MG Motor, a subsidiary of China’s SAIC Motor, have announced ambitious plans to dominate India’s electric vehicle (EV) market through their joint venture (JV).
A top JSW executive revealed their target of selling 1 million electric vehicles in India by 2030, capturing a significant third of the market share while launching the Cyberster EV sports car.
The collaboration between JSW Group and MG Motor signifies a strategic alliance to capitalize on the burgeoning EV segment in India. The JV’s foray into the premium passenger vehicle segment was marked by the launch of their latest model, the sleek and futuristic “Cyberster EV” sports car.
During a media event showcasing the Cyberster EV, Rajeev Chaba, Managing Director of MG Motor India, disclosed plans for a substantial investment of Rs 5000 crore, or about $602 million, into the JV. This investment underscores the partners’ commitment to driving innovation and market expansion in India’s evolving automotive landscape.
Echoing Chaba’s sentiments, Sajjan Jindal, Chairman of JSW Group, drew parallels with Maruti Suzuki’s transformative impact on India’s automotive industry decades ago. Jindal expressed confidence in the JV’s ability to revolutionize the EV sector, focusing on efficiency and advanced technology, akin to Maruti Suzuki’s disruptive approach in its time.
The timing of this ambitious endeavor coincides with significant policy changes in India’s EV sector. Last week, New Delhi announced reductions in import taxes on select EVs, incentivizing carmakers to invest in local manufacturing. With the government targeting 30 percent EV penetration by 2030, such policy shifts are poised to accelerate the adoption of electric mobility in the country.
While the policy change is anticipated to benefit global players like Tesla, homegrown manufacturers are also gearing up for the EV revolution. With its existing electric models, MG Motor aims to capitalize on the evolving market dynamics by expanding its production capacity through the JSW partnership.
The collaboration with JSW Group is expected to substantially enhance MG Motor’s manufacturing capabilities, with a planned increase in annual production capacity from 100,000 to 300,000 units. The formation of the JV, announced last December, received regulatory approval in January, further solidifying the partnership’s strategic position in India’s dynamic automotive industry.
As JSW Group and MG Motor forge ahead with their electrification agenda, the unveiling of the Cyberster EV signifies a significant milestone towards realizing their vision of a sustainable and thriving EV ecosystem in India. With bold ambitions and strategic investments, the JV aims to shape the future of mobility while capturing a significant share of India’s burgeoning EV market.
