JSW MG Motor India would invest Rs 5,000 crore to increase production capacity and produce one new car every 3-6 months beginning in September, top company officials announced on Wednesday. The newly established firm, a joint venture between China's SAIC and Indian giant JSW Group, would also strive to create a "Maruti moment" in the new energy vehicle category, according to JSW Group Chairman Sajjan Jindal, who announced the alliance here.
The joint venture plans to sell one million passenger electric vehicles in India by 2030, when the whole market is estimated to reach 10 million units per year.
"We announced today that we are going to have our second plant in Gujarat near our existing unit at Halol itself," MG Motor India Chairman Emeritus Rajeev Chaba told PTI on the sidelines of the ceremony.
The company's production capacity will increase from more than one lakh to more than three lakh each year, he said.
When asked what the investment would be, he replied, "The total investment from all stakeholders in this space is going to be over Rs 5,000 crore on capacity enhancement and new product introductions."
In his talk, Jindal outlined the company's plan and stated that the JSW Group believes in scale when it comes to capacity expansion.
"We plan to churn the entire industry and cause disruption. "Our plan is to bring one new car every three to four months, six months from now," he explained.
He stated that the new autos would be available beginning in September. We will manufacture them in India not just for domestic consumption, but also for sale to the most developed markets.
"When Maruti entered the Indian market forty years ago, it transformed the automobile industry. It brought incredibly efficient, very lightweight cars, and the Ambassadors and Fiats faded into obscurity.
"Maruti brought in cutting-edge new automobiles. Today, they are the market leader," he stated.
"I believe that with MG we can create a new energy vehicle, the Maruti moment," Jindal said in a statement.
JSW MG Motor India aims to be the market leader in India's new energy vehicle (NEV) segment, with a target of 10 lakh units sold yearly by 2030. Parth Jindal, Member of the Steering Committee of JSW MG Motor India, spoke during the ceremony.
"We aspire to have 33% of the new energy vehicle category by 2030. That is, in addition to all of our other products, we intend to sell one million electric passenger automobiles.
Last November, SAIC Motor, China's largest manufacturer, signed a joint venture deal with the JSW Group to drive MG Motor's transition and expansion in India. MG Motor is a British brand owned by Shanghai-based SAIC Motor.
JSW Group will own 35 percent of the Indian JV activities. According to the agreement, SAIC will continue to support the joint venture by providing sophisticated technology and products to create mobility solutions with a focus on Indian consumers. In 2022, MG Motor India revealed plans to invest roughly Rs 4,000 crore in a second production unit, and it was in talks with several state governments, including Gujarat, where its first facility is located.
The company, which was trying to increase its yearly production capacity at its Halol factory in Gujarat to 1.25 lakh units, planned to add another 1.75 lakh units capacity from the second plant, bringing its total capacity to 3 lakh units per year in two years. However, its expansion ambitions were pushed back due to a lack of funds. Since its foundation in 2019, MG Motor India has invested Rs 7,000 crore and sold almost 200,000 automobiles in the country.
In 2023, the company sold around 60,000 units, compared to 48,000 units in 2022. JSW Group, on the other hand, signed a Memorandum of Understanding (MOU) with the Odisha government last month to construct an integrated electric vehicle (EV) and EV battery manufacturing project in the state for Rs 40,000 crore.
The JSW Group plans to establish an electric car and component manufacturing plant in Naraj, Cuttack district, as well as a copper smelter and lithium refinery in Paradip, Jagatsinghpur district. The project includes a 50 GWH EV battery facility, an EV, a lithium refinery, a copper smelter, and several component production plants.
