Indian steel group JSW and MG Motors, a brand of the Chinese automotive group SAIC, have officially launched their joint venture, JSW MG Motor India, in India. The ambitious goal of the joint venture is to sell one million electric cars in India by 2030, capturing a third of the market.
At a media event in Mumbai, the joint venture unveiled the MG Cyberster EV, a well-known electric roadster from MG. JSW MG Motor India will initially focus on premium cars, with plans to launch its first plug-in hybrid car by 2025 and to develop a charging infrastructure across India.
Despite JSW holding only 35% of the joint venture, Indian parties, including financial institutions, car dealers, and employees, will collectively hold 51% of the shares, ensuring an Indian majority. This was a crucial aspect for the joint venture due to political reasons, as the Indian government aims to limit China’s influence on the Indian economy.
JSW CEO Sajjan Jindal expressed high expectations for the joint venture, comparing its potential impact to that of the successful Maruti Suzuki joint venture in the combustion engine sector, which has been a market leader in India for 40 years.
Currently, electric cars make up only two percent of the Indian market, but the government aims to increase this share to 30% by 2030. To support this goal, import taxes on electric cars from certain manufacturers, including Tesla, have been reduced recently, potentially affecting companies producing expensive vehicles in India.
JSW has been investing heavily in electromobility since 2017 and is likely to build a battery factory for electric cars, among other plans. Additionally, JSW is in negotiations with Volkswagen for another potential electric car joint venture, as announced in February.