Sajjan Jindal-led JSW Group outlined its strategy for the new auto venture with MG Motors setting a target of capturing 33 per cent of new energy vehicle segment by 2030 by rolling out one model every 3-6 months.

JSW Group will hold 35 per cent stake in the newly formed JSW MG Motor India with Indian financial institutions and domestic MG Motor dealers holding 8 per cent and 3 per cent besides employees owning 5 per cent. The fresh stake holding will result in a capital infusion of Rs 5,000 crore.

The Chinese car major SIAC Motor will hold 49 per cent stake in the new joint venture company. At later stage, SIAC may dilute its stake through an initial public offering, though the company has not committed right now.

The fresh capital infusion will be used to increase production capacity to 3 lakh vehicles per annum from 1 lakh. The newly-formed JV showcased Cyberster EV, the premium passenger vehicle, to be launched early next year in India.

Sajjan Jindal, Chairman, JSW Group, said the venture will disrupt the electric vehicle market in India by launching one latest high-tech models of MG Motor every 3-6 months and with the intent to deep localisation the pricing point will definitely excite consumers.

“We are all set to recreate a Maruti movement. I recall in 1984 when Maruti first launched its vehicle there was so much excitement and everybody wanted to own one. Today, they have 50 per cent market share. The same urge will be kindled again with our new launches,” he said.

Parth Jindal, Member of Steering Committee, JSW MG Motor India JV, said “the company has to sell one million passenger EVs to achieve 33 per cent market share by 2030.”

“We believe, over the next 10 years India is going to be a 10 million electric passenger vehicle market with able government support for faster adoption to contain crude oil import dependency and stem the current account deficit,” he said.

If the country can become truly Aatmanirbhar, electric vehicles are going to be the future, he said.

Indian economy at $4 trillion is where China and US were in the year 2005 and 1985. Incidentally, China sold 5 million passenger vehicles in 2005 exactly what India did in 2023.

Last year, he said, China sold 25 million passenger vehicles and of this 8 million or 32 per cent were new energy vehicle products. In contrast, India sold less than 2 per cent or only 80,000 EVs last year 2023.

Asked whether JSW MG Motor will share any royalty to SIAC Motor, Rajeev Chaba, Managing Director, MG Motor India, said all the car companies in India have a set royalty sharing model and the company will also follow the same.

The JSW-MG Motor India will open its second plant in Gujarat near its existing unit at Halol, he added,

MG Motor, a British brand owned by Shanghai-headquartered SAIC Motor, entered into a joint venture with the JSW Group last year.

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. Last year, MG Motor sold about 60,000 units, up nearly 25 per cent from the 48,000 units sold in 2022.