JSW Group and MG Motors inked joint venture to target energy vehicle in India

by Psu Connect
Date: 21-03-24

Sajjan Jindal's JSW Group has announced its strategy for the new MG Motors' auto venture, targeting 33% of the new energy vehicle segment by 2030 by launching one model every 3-6 months.

JSW Group and MG Motors inked joint venture to target energy vehicle in India

JSW Group is set to acquire a 35% stake in the newly formed JSW MG Motor India. The remaining stake will be held by Indian financial institutions, domestic MG Motor dealers, and employees, in proportions of 8%, 3%, and 5% respectively. With this fresh stakeholding, JSW MG Motor India will receive a capital infusion of Rs 5,000 crore.

SIAC Motor, the Chinese car major, will hold a 49% stake in the new joint venture company. SIAC may dilute its stake through an initial public offering at a later stage, however, the company has not committed to this yet.

JSW Group's Chairman, Sajjan Jindal, has announced that the company plans to invest fresh capital to increase the production capacity of MG Motor to 3 lakh vehicles per annum from 1 lakh. This move is expected to disrupt the electric vehicle market in India, as MG Motor plans to launch the latest high-tech models every 3-6 months. With the aim of deep localization, the pricing strategy of MG Motor is expected to be consumer-friendly.