JSW MG Motor India sets to challenge Maruti and Tata Motors
JSW MG Motor India sets to challenge Maruti and Tata Motors
(Content Editor 1newsbusiness)
Mumbai: JSW Group and SAIC Motor-owned MG Motor India announced a joint venture to produce electric and internal combustion engine cars in India. With JSW's 35% stake acquisition, the partnership aims to challenge Maruti and Tata Motors' dominance in Indian markets. MG plans to capture a third of the New Energy vehicle market by 2030, focusing on EVs.
JSWGroup and Chinese automotive manufacturer SAIC Motor-owned MG Motor India on Thursday kickstarted their joint venture that will produce both electric and internal combustion engine cars to capture a large chunk of Indian market that is primarily dominated by Maruti and TataMotors.
Parth Jindal, member of steering committee of the new JV, unveiled the new brand identity for JSW MG Motor India, following JSW Group's acquisition of 35% stake in MG Motor India from SAIC.
"We want to launch one electric vehicle every 3-4 months in the next months. The idea is to create a Maruti moment," said Sajjan Jindal, Chairman, JSW Group.
In the 90s, Maruti brought in new cars and now they have 50% market share. With MG, JSW can create New Energy Vehicle Maruti moment, Jindal said. He also said the focus on new energy vehicles is important to reduce India's dependency on oil imports.
India will be at par with the world as far as EVs are concerned and JSW MG Motor India will produce most advanced modern EVs, Jindal said.
"September onwards every three to four months we will also export them. We will deepen localistion, manufacture them here in India. That's my passion. With the technology from MG and group's strength, we are also building charging system," the chairman said.
JSW MG Motor also plans to foray into premium passenger vehicle segment and by 2030, it aims to take leadership position in the NEV category with an extensive product portfolio.
MG unveiled a new offering MG Cyberster, which will be part of the company's premium offering. MG aims to capture 33% of the market of the New Energy vehicle segment by 2030, intending to sell one million passenger EVs in the year 2030 apart from all the other products that the company sells, said Parth Jindal, Managing Director of JSW Cement. MG India 1.0 has had a very good 5 years and it is now up to the joint venture to make MG 2.0 even more impactful and successful, he said.
The company will increase its production in Halol, Gujarat, mainly making NEVS. This will help the car maker produce a lot more cars each year, going from over100,000 now to as many as 300,000.
India will move from selling four million cars to 10 million cars over the next 10 years, Parth Jindal said. MG Motor, a British brand owned by Shanghai-headquartered SAIC Motor in 2023 entered into a joint venture with the JSW Group. As part of the arrangement, Jindal’s JSW Group will hold 35 per cent of the company’s India operations.
As per the agreement, SAIC will continue supporting the joint venture with advanced technology and products to deliver mobility solutions with a focus on the Indian consumer.
"The joint venture plans to launch a new product, including NEVS, every three to six months, beginning this festive season, with two new products slated to be launched this calendar year. These futuristic products with attractive value propositions enable the joint venture's foray into the premium passenger vehicle channel," the company said.
MG Motor is looking at this tie-up with JSW Group to drive the company’s next phase of growth. It entered the Indian market in 2019, and has sold around 2 lakh units since then. It has also invested close to Rs 7,000 crore so far.
MG Motor in 2023 sold around 60,000 units, up nearly 25 per cent from the 48,000 units sold in 2022. On an annual basis, MG Motor India has registered growth for four consecutive years.
As part of its growth plan, MG Motor India plans to establish a second manufacturing facility in Gujarat, in addition to its Halol unit. The new unit is intended to more than double the company’s installed capacity to a total of 3 lakh units, from the current 1.2 lakh units.
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