JSW Group and MG Motor JV to target 10 lakh EV sales by 2030, invest ₹5,000 crore

JSW Group and MG Motor JV to target 10 lakh EV sales by 2030, invest ₹5,000 crore

JSW Group on Wednesday announced that a joint venture with MG Motor will aim to achieve sales of 10 lakh electric vehicles in India by 2030, capturing a significant share of the market.

Mumbai: JSW Group Chairman Sajjan Jindal, JSW Cement Managing Director Parth Jindal and President and Managing Director of MG Motor India Rajeev Chaba unveil MG Cyberster electric sports car under SAIC Motor and JSW group’s joint venture, in Mumbai, Wednesday, March 20, 2024.( (PTI Photo/Shashank Parade))

According to a JSW executive, the joint venture plans to penetrate the premium passenger vehicle segment as they launch their latest model, a sports car named the “Cyberster EV.”

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During a media event for the launch, Rajeev Chaba, managing director of MG Motor India, said that the two companies would collectively invest 5,000 crore into the joint venture.

JSW Group chairman Sajjan Jindal said that JV would revolutionise India’s EV sector, akin to how Maruti Suzuki disrupted the automotive market four decades ago with its “very efficient, very lightweight cars.”

Centre recently approved a new policy for electric vehicles, providing duty concessions on imported cars to companies that commit to investing a minimum of USD 500 million in setting up manufacturing units in India.

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India’s new EV policy

• The government announced that under the new policy, foreign companies must commit to investing a minimum of $500 million, or approximately 4,150 crore, in investment and manufacturing facilities within three years to qualify for the import tax concession.

• Duty concessions on the total imported electric vehicles (EVs) are limited to the investment made or 6,484 crore, whichever is lower, equivalent to the incentive under the Production Linked Incentive (PLI) scheme.

• In case the investment exceeds USD 800 million, a maximum of 40,000 EV imports will be allowed over five years. These imports will be subject to a lower tax rate of 15 per cent on cars costing $35,000 and above, with an annual limit not exceeding 8,000. Carryover of unused annual import limits is permitted.

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MG Motor-JSW venture

EVs accounted for approximately 2 per cent of total car sales in India in 2023, with the government aiming for a 30 per cent share by 2030.

MG Motor, a subsidiary of China’s SAIC Motor, currently offers two electric models in India: the compact Comet EV and the ZS EV, an SUV. The collaboration with JSW is expected to boost MG Motor’s annual production capacity from 100,000 to 300,000 units, according to a joint statement. However, no specific target date has been provided for this expansion.

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SAIC Motor and JSW formed the joint venture (JV) in December last year, with JSW Group holding a 35 per cent stake.

India’s competition regulator approved JSW’s acquisition of a 38 per cent stake in MG Motor India in January. JSW Group encompasses various companies, including JSW Steel, India’s largest steelmaker by capacity, operating across multiple sectors.

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