Indian steel giant JSW Group issued an announcement announcing that it would establish a joint venture JSW MG Motor India with SAIC Motor.
According to reports, both parties jointly invested US$1.5 billion in the joint venture (Note: currently about 10.815 billion RMB). JSW Group holds 35% of the shares, SAIC holds 49%, and the rest is funded by local financial institutions, automobile Dealers and some employees participate in shareholdings.
JSW MG Motor India will primarily manufacture and sell MG electric vehicles in India and create a strong supply chain to enhance local sourcing.
In addition, the joint venture plans to launch a new product every three to six months, focusing on new energy vehicles. It will launch two new products this year and will also enter the high-end passenger car market in the future.
Sajjan Jindal, chairman of JSW Group, said that the group has been seeking opportunities to enter the Indian automobile market, and the rise of new energy vehicles has allowed it to see opportunities to enter. And MG’s technical advantages make it a good partner. In terms of market competition strategy, Jindal believes that the joint venture may follow the example of Maruti Suzuki and seek market share breakthroughs through the rapid launch of models. It is understood that the joint venture aims to increase its share of India’s new energy vehicle market from 2% to 33% by 2030, and plans to sell 1 million electric passenger cars in 2030.
The company aims to take a leading position in new energy vehicles by 2030 and is committed to becoming carbon neutral by 2029. Currently, more than 60% of the energy needs of the company’s Halol (Gujarat) manufacturing operations come from renewable resources.
JSW MG Motor India will also focus on creating a large number of jobs and nurturing talent in the country and the company will also work towards grooming 100,000 students and employees with the required expertise in EV, autonomous and connected car technologies.
