JSW-MG Motor joint venture hits the ground running

The joint venture between the Sajjan Jindal-promoted JSW Group and SAIC Motor has announced plans to roll out a new energy vehicle (NEV) every three to six months, with two new products in the pipeline for this year.

The venture, dubbed JSW MG Motor India Pvt. Ltd, aims to expand production capacity in Halol, Gujarat, from about 100,000 to up to 300,000 vehicles annually, the companies said in a joint statement.

JSW and SAIC Motor had in January announced the setting up of the joint venture to expand the operations of the latter’s MG Motor in India. SAIC is the owner of the British-origin MG brand. JSW Group owns a 35% stake in the joint venture.

On Wednesday, 20 March, the joint venture showcased its all-electric convertible roadster, Cyberster, which is expected to be rolled out in the international markets in the middle of this year, along with two other electric vehicle models.

The models MG Motor has already rolled out in India so far include MG Hector, MG ZS EV, MG Gloster, Astor, and MG Comet.

JSW MG Motor India said it will focus on strengthening its research, development, and technical prowess by setting up a new centre that will develop connected, new-age and local mobility solutions.

“By leveraging the legacy of a world-renowned British brand, cutting-edge MG technology and JSW’s local manufacturing knowledge and acumen…JSW MG will make world-leading products in India for India and the world,” Parth Jindal, a member of the steering committee at JSW MG Motor India, said.

“It is our goal to be the leading auto OEM (original equipment manufacturer) in the NEV segment in India and we will bring the best available technology into India so that we can give the Indian consumer world-class cars at affordable prices,” Jindal said, adding: “MG India 1.0 has had a very good five years, and it is now up to the joint venture to make MG 2.0 even more impactful and successful.”

JSW MG Motor India will leverage synergies across JSW Group’s ecosystem, the joint statement said, adding that the venture aims to build a smart, sustainable electric vehicle ecosystem.

“In JSW Group, we have found an ideal local partner to continue the growth story of the MG brand in India. In less than five years, Team MG India has established a rock-solid foundation – a testament to our commitment to innovation, diversity, community service and robust customer care,” Rajeev Chaba, chief executive officer emeritus at MG Motor India, said.

MG Motor entered the Indian market in 2019, intending to invest around $650 million. However, following a 2020 military confrontation between India and China along their contested Himalayan border, New Delhi has been aiming to curb investments originating from Beijing.

With Chinese investments coming under tighter scrutiny in India, SAIC Motor had said last May that it sought to drop its ownership of MG Motor India and allow domestic entities to take a majority stake.

“Today, we are among the fastest-growing OEMs in the country. This foundation empowers us to embark on a new chapter, MG 2.0, and the joint venture marks a pivotal step in this journey,” Chaba said, adding: “We will offer a range of vehicles from ICE (internal combustible engine) to NEVs, staying focused on building a robust and sustainable EV ecosystem in India.”