A joint venture between Indian conglomerate JSW Group and MG Motor is expected to sell 1 million electric vehicles in India by 2030, capturing a third of the market, JSW executives said.

The two companies said that the joint venture plans to enter the high-end passenger car field and launch a new model “Cyberster EV” sports car.

MG Motor India managing director Rajeev Chaba told the launch that the two companies will infuse a total of Rs. Inject US$50 billion (US$602 million) into the joint venture.

Meanwhile, JSW Group Chairman Sajjan Jindal said he hoped the joint venture could transform India’s electric vehicle industry in the same way Maruti Suzuki disrupted the car market 40 years ago with “very efficient, very lightweight cars”.

The situation in India changed last week when New Delhi slashed import duties on some electric vehicles from automakers that had pledged 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, and analysts say the impact on Indian sales is likely to be largely limited to higher-priced automakers.

Electric vehicles will account for about 2% of total car sales in India by 2023, and the government aims to reach 30% by 2030.

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

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

In December last year, SAIC and JSW announced the establishment of a joint venture, with the Indian group holding 35% of the shares.

India’s competition regulator in January approved JSW’s proposal to acquire a 38% stake in MG Motor India.

JSW’s companies include companies in multiple industries including JSW Steel, India’s largest steel manufacturer by production capacity.

© Thomson Reuters 2024

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