JSW MG Motor India to expand annual capacity from 1 lakh to 3 lakh. Here’s how

JSW MG Motor India, the newly formed joint venture (JV) between ndian conglomerate JSW Group and China's SAIC, announced their EV offensive plans. Termed as MG Motor India 2.0, the new phase will focus on new energy vehicles (NEVs) alongside internal combustion engine (ICE) vehicles. To fuel this plan, the JV announced an investment of ₹5,000 crore to enhance production capacity and launch a new car every 3-6 months starting September.

The joint venture aims to create a "Maruti moment" in the new energy vehicle segment, targeting to sell one million units of passenger electric vehicles in India by 2030, when the total market is expected to reach 10 million units annually.

"We will set up a second plant in Halol as we focus on scaling up," said MG Motor India Chairman Emeritus Rajeev Chaba. The new plant will increase the company's production capacity from over 1 lakh units per year to over 3 lakh units per year.

JSW Group Chairman Sajjan Jindal emphasised the company's commitment to scale and disrupt the industry. "Our idea is that we will bring one new car every 3-4 months, six months down the line," he said.

The joint venture aims to manufacture vehicles in India not only for the domestic market but also for export to the most developed markets. Jindal drew parallels with Maruti's impact on the Indian auto industry, expressing confidence that MG Motor India with JSW can achieve similar success. Parth Jindal, Member of Steering Committee, JSW MG Motor India, outlined the company's goal to capture 33 per cent of the new energy vehicle segment by 2030, selling one million passenger electric vehicles.

Additionally, JSW MG Motor India is set to strengthen its research, development, and technical capabilities by establishing a dedicated R&D center. This center will cater to the diverse preferences of car buyers, focusing on developing connected, modern, and locally relevant mobility solutions. These efforts aim to provide customers with enhanced access to cutting-edge technologies and innovative products with attractive value propositions.

In line with its new business roadmap, JSW MG Motor India will further prioritise the creation of of job opportunities and the development of talent pool within the country. This initiative is expected to have a positive impact on local communities, the JV believes. Additionally, the company plans to skill 1,00,000 students and provide upskilling opportunities for employees, equipping them with the necessary expertise in EVs, Autonomous, and Connected car technologies.

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Last year, China's SAIC Motor inked a joint venture agreement with the JSW Group to accelerate the growth of MG Motor in India. JSW Group will hold 35 per cent in the Indian JV operations, with SAIC continuing to support the joint venture with advanced technology and products.

In 2022, MG Motor India had announced plans to invest around ₹4,000 crore in a second manufacturing unit. The company's expansion plans, however, got delayed due to a funding crunch. Since its inception in 2019, MG Motor India has invested ₹7,000 crore and sold close to 2,00,000 vehicles in the country. In 2023, the company sold around 60,000 units, compared to about 48,000 units in 2022.

Additionally, JSW Group signed an MoU with the Odisha government last month for the establishment of an integrated electric vehicle and EV battery manufacturing project at an investment of ₹40,000 crore in the state. The project includes a 50 GWH EV battery plant, EV, lithium refinery, copper smelter, and related component manufacturing units.