Sajjan Jindal, the son of India’s wealthiest woman, Savitri Jindal, is leading his steel-and-energy conglomerate JSW Group into the automotive industry by acquiring a 35% stake in MG Motor India. His son, Parth Jindal, who is a director at JSW MG Motor, is optimistic about the electric vehicle market as India pushes for a transition to reduce its reliance on imported oil. The joint venture, which also includes SAIC Motor and Everstone Capital, plans to invest $1.8 billion to increase production capacity to 300,000 units per year by 2026 and 1 million by 2030.
To expand its production capabilities, JSW MG Motor is looking to increase localization by sourcing more parts from within India, including materials from JSW Group. The company aims to launch a new model every three to six months and is planning to build a second factory in Gujarat. In support of the government’s push towards EVs, India has lowered import duties on certain electric vehicles, incentivizing carmakers to invest at least $500 million and begin manufacturing within three years.
Despite the challenges posed by the transition to EVs, Parth Jindal believes it is essential for auto majors to bring their technology to India to meet the country’s objectives. According to the Society of Indian Automobile Manufacturers, domestic passenger car sales have increased by 8% in the year ending March 31, with EVs comprising 2% of the total sales. Tata Motors currently dominates the EV market with a 67% share, followed by Mahindra & Mahindra and JSW MG Motor at 13% each.
Parth predicts a significant growth in both passenger car and EV sales by 2030, with JSW MG Motor aiming to sell 600,000 vehicles, of which 75% will be EVs. He anticipates a 10% increase in revenue to nearly $1.5 billion by March 2025, with a tenfold growth to $15 billion by fiscal 2030. The company plans to list in three to five years and aims to achieve a funding target based on the valuation of other auto companies in India.
Ultimately, JSW MG Motor is positioning itself to capitalize on the growing demand for EVs in India and aims to establish a strong foothold in the market with a diverse range of electric vehicle models. With a focus on localization, investment in production capacity, and alignment with government initiatives, the company is poised to become a key player in the Indian automotive industry and drive the transition towards electric vehicles to reduce the country’s dependence on imported oil.
