JSW MG Motor India Wants To Recreate ‘Maruti Movement’ With NEVs

In a monumental collaboration, SAIC Motor and JSW Group have unveiled their strategic joint venture – JSW MG Motor India. This alliance is poised to capitalise on the burgeoning opportunities emerging in India's dynamic automotive sector. With a steadfast commitment to innovation, sustainability, and customer-centricity, JSW MG Motor India aims to revolutionise the automotive landscape by introducing cutting-edge technology, fostering local manufacturing, and creating a robust ecosystem for smart and sustainable products.

Sajjan Jindal, Chairman of JSW Group, outlined the structure of the venture, with Indian entities holding a majority stake of 51 per cent. JSW will hold 35 per cent stake in MG Motor India, with the remaining shares distributed among domestic financial investors, MG employees, and dealers. Notably, the agreement anticipates further dilution of the Chinese partner's equity over the coming years, possibly through an IPO.

Drawing parallels to the game-changing entry of Maruti Suzuki into the Indian market four decades ago, Jindal expressed his vision of replicating such a movement in the realm of New Energy Vehicles (NEVs). The objective is clear: to introduce efficient and eco-friendly cars at a rapid pace, akin to the revolution brought about by Maruti, consequently positioning JSW MG Motor India as a market leader in the NEV segment.

JSW MG Motor India's strength lies in the fusion of SAIC Motor's global automotive expertise and JSW Group's profound knowledge in manufacturing at scale in India. Leveraging synergies across JSW Group's ecosystem, the joint venture aspires to introduce advanced technologies and new-age mobility solutions while enhancing local sourcing through a robust supply chain.

The strategic roadmap outlined by JSW MG Motor India underscores a relentless focus on building clean energy vehicles such as plug-in hybrid electrics, pure electrics, fuel cells, and other sustainable option. With a diverse portfolio tailored to meet customers' unique preferences, the joint venture plans to introduce a new product, including NEVs (New Energy Vehicles), every three to six months, commencing this festive season while the the two new products are slated to be launched this calendar year.

This ambitious initiative is a testament to the venture's commitment to delivering world-class cars at affordable prices, catering to the discerning Indian consumer.Parth Jindal, Member of the Steering Committee of JSW MG Motor India, expressed confidence in the joint venture's ability to set new benchmarks in automotive excellence. By harnessing the legacy of the British brand MG, alongside cutting-edge technology and local manufacturing acumen, JSW MG Motor India is poised to lead the NEV segment in India and beyond.

Alongside this, JSW is also separately investing Rs. 40,000 crore into automotive business with plans to establish state-of-the-art manufacturing facility in Odisha, focusing on electric cars, commercial vehicles, batteries, and components. This strategic move underscores JSW's unwavering dedication to shaping the future of mobility in India.

Rajeev Chaba, CEO Emeritus of MG Motor India, hailed JSW Group as an ideal partner to continue the growth trajectory of the MG brand in India. With a solid foundation laid over the past five years, MG Motor India has established itself as one of the fastest-growing OEMs, driven by innovation and robust customer care. The partnership with JSW Group marks a pivotal step in MG's journey, enabling the expansion of its manufacturing footprint and localisation efforts.

The expansion plans include a significant augmentation of production capacity at the Halol plant in Gujarat, with a primary focus on producing NEVs. This strategic move aims to triple the annual production capacity, from the current 1,00,000 plus to up to 3,00,000 vehicles annually, aligning with the joint venture's vision of accelerating the adoption of EVs in India.

The MG Motor India has embarked on a new journey as MG 2.0 and this joint venture marks a pivotal step in this journey.

With a clear vision of carbon neutrality and sustainability, JSW MG Motor India aims to lead the NEV category by 2030. By leveraging renewable resources for manufacturing operations and investing in skill development initiatives, the joint venture seeks to create a significant number of employment opportunities and cultivate a skilled talent pool equipped for the future of mobility.

The partnership between JSW Group and MG Motor represents a watershed moment in India's automotive industry. With a focus on innovation, sustainability, and customer-centricity, JSW MG Motor India is poised to redefine mobility in India, ushering in a cleaner, greener, and more connected future.