JSW MG Motor India has announced a large investment of Rs 5,000 crore to increase manufacturing capacity and deliver new car models every three to six months beginning in September. SAIC and JSW Group formed a joint venture to drive development and innovation in India’s automotive sector.
The newly established business, a joint venture between China’s SAIC and Indian giant JSW Group, would likewise strive to create a “Maruti moment” in the new energy vehicle category, according to JSW Group Chairman Sajjan Jindal, who announced the partnership’s completion.
JSW MG Motor India intends to build a second plant in Gujarat near its existing facility in Haiol. This initiative is intended to treble the company’s manufacturing capacity from over 1 lakh to more than 3 lakh units per year. The investment will support the launch of new goods and improve production capacities.
JSW Group Chairman
JSW Group Chairman Sajan Jindal expressed confidence in having a transformational impact on the automobile sector, similar to Maruti’s significance four decades earlier. The firm aims to offer new automobile models every 3-4 months, targeting both the home market and exports to established markets.
Joint venture
Last November, China’s largest manufacturer, SAIC Motor, signed a joint venture (JV) deal with the JSW Group to drive MG Motor’s transformation and expansion in India.
Under the new structure, JSW would own 35% of the JV, followed by Indian Financial Institutions (IFI) at 8%, MG Motor dealers at 3%, and firm workers at 5%. The remaining 49 percent will be with SAIC, making the JV majority-owned by Indians. The JV plans to sell one million passenger electric vehicles in India by 2030, when the overall market is estimated to reach 10 million units per year.
