MG motor India set up shop in 2017 at halol, Gujarat, and started manufactur-ing operations in 2019. The carmak-er’s first product, the mG hector SUV, launched in 2019, was well received by Indian customers. Then followed hector Plus, both models being major contributors to mG India’s sales num-bers. Taking forward hector’s success, the company introduced the ZS EV, the Gloster, the astor, and the latest EV hatchback for urban mobility, the comet. The company also showcased many products for future mobility at last year’s auto Expo 2023, including MG4 EV, and EHS hybrid SUV. It also displayed the world’s first hydrogen fuel-cell MPV—EUNIQ7—as part of its new energy vehicles (NEVs).
MG motor is owned by a lead-ing global brand, SaIc motor. With its presence in more than 100 countries, SaIc motor sold over five-mil-lion cars in 2023. NEVs make up 25 per cent of their sales. SaIc is also engaged in research and development, and the production and sale of auto parts, core components, and smart EV product systems such as batteries, elec-tric drive units (EDUs), and electronic motors. With the strong backing of SaIc motor, mG India has ambitious plans for future mobility in the Indian market.
The journey of MG in India began with the aspiration of introducing a global legend to the country. With a legacy spanning 100 years, the mG brand commemorates this milestone by extending various offerings to Indian customers as part of its celebra-tions. Presently, over two-lakh MG cars grace Indian roads. For three consecu-tive years, MG India has consistently upheld its number one ranking in sales and customer satisfaction studies conducted by JD Power customer Service. additionally, MG boasts a high female workforce of 37 per cent, the highest in the automotive industry, as claimed by the company. as MG India transitions into its next phase, MG 2.0, a strategic joint venture between SaIc motor and JSW Group has been inked, giving rise to an entity known as JSW MG motor India Pvt Ltd (JSW MGI).
“It’s really exciting to celebrate the coming together of two corporate giants, a historic milestone in the journey of MG motor India,” said Rajeev Chaba, cEO Emeritus of MG motor India, while announcing the new JV. The new entity charts out plans to focus on creating a robust EV eco-system, and increase the production capacity from the current 1,00,000 units to 3,00,000 annually. JSW MGI plans to introduce new products every six months to increase its market share with the main focus on new energy vehicles. The JV also displayed cyber-ster, a sports car, and announced plans to foray into the premium passenger vehicle segment.
While JSW owns 35 per cent of the business, Indian financial investors (IFI) will hold 8 per cent in the joint venture, mG India dealers are buying 3 per cent and 5 per cent is being kept for employees. a total of 51 per cent of the company will be owned by Indi-ans, with the total investment being about Rs.5,000 crore. The investment structure was made to incentivise deal-ers, marketing partners, and employees and help turn them into owners of the company. SaIc will hold the balance 49 per cent, with an expecta-tion of gradual dilution over the next few years.
Robust automotive ecosystem
The new joint venture will capitalise on the significant opportunities emerging in the fast-evolving Indian automotive sector. JSW MGI is com-mitted to bringing in the best of inno-vation across its business operations, introducing world-class technology, strengthening the manufacturing landscape, generating significant employment prospects, and offering smart and sustainable products focused on customer-centricity. The business roadmap for the company focuses on extensive localisation and development of a robust automotive ecosystem across the country. The JV also aims to build a smart, sustainable Partner for progress JSW and MG Motor India set a roadmap for future mobility Chaba, Sajjan and Parth: JSW MGI will make world-leading products in India EV ecosystem while staying focused on developing a diverse portfolio of vehicles tailored to meet customers. Two new products are slated to be launched this calendar year.
“The JSW MGI joint venture is a momentous joint venture. It is the coming together of two giants in SaIc and JSW. By leveraging the legacy of a world-renowned British brand, cutting-edge MG technology, and JSW’s local manufacturing knowledge and acumen, I have no doubt that JSW mGI will make world-leading products in India for India and the world,” said Parth Jindal, member of the Steering committee of JSW mGI. “It is our goal to be the leading auto OEM in the NEV segment in India and we will be working tirelessly to bring the best available technology into India so that we can give the Indian consumer what they truly want, which is world-class cars at affordable prices. mG India 1.0 has had a very good 5 years and it is now up to the joint venture to make MG 2.0 even more impactful and successful. We are grateful that SaIc chose to partner with us and can’t wait to get going,” added Jindal.
India is a $4 trillion economy as was china in 2005 and the USa in 1985. In 2005, china sold four-million passenger vehicles, which is the number of vehicles sold in India in 2023. In 2023, in china, 25-million passenger vehicles were sold, of which 32 per cent (or eight million) were new energy vehicle products or EVs. as compared to that, India sold less than 2 per cent or only 80,000 electric vehicles in 2023. There is a huge potential available in the NEV segment in India. Over the next 10 years, India is going to move from a four-million passenger vehicle market to a 10-million passenger vehicle market. With all the support being provided by the government of India, electric vehicles are going to follow the same adoption path that was followed in China.
“If India truly wants to solve the deficit created by oil imports, electric vehicles are going to be the future. We aim to have 33 per cent of the market, of the new energy vehicle segment by the year 2030. and that means that we want to sell one-million electric vehicles in 2030, apart from all the other products that we will sell,” declares the younger Jindal.
JSW MGI will focus on strengthening its research, development, and technical prowess by setting pan R&D centre to cater to the different choices of car buyers. The new r&D centre will develop connected, new-age and local mobility solutions, giving automobile customers letter access to advanced technologies and futuristic products with attractive value propositions.
JSW MG’s new business roadmap will also focus on creating a considerable number of employment opportunities and developing a large talent pool in the country, a move that will benefit local communities. In addition, the company will work towards skilling 1,00,000 students and upskilling employees with the expertise needed for EVs, autonomous and connected car technologies.
“In the JSW Group, we have found an ideal local partner to continue the growth story of the mG brand in India. In less than 5 years, Team mG India has established a rock-solid foundation – a testament to our commitment to innovation, diversity, community service and robust customer care. Today, we are among the fastest-growing OEMs in the country. This foundation empowers us to embark on a new chapter, MG 2.0, and the joint venture marks a pivotal step in this journey,” explains Chaba.
Future plans
By 2030, the company aims to take a leadership position in the NEV category with an extensive product portfolio. It currently utilises over 60 per cent of its energy requirements for its manufacturing operations at halol (Gujarat) from renewable resources and is working towards becoming carbon neutral by 2029.
Chairman of JSW Group and Managing Director of JSW Steel, Sajjan Jindal said: “at JSW, we have planned to produce not only the most technologically advanced car along with mG, but we will also make the whole ecosystem which goes along with it, ie manufacturing of the batteries, the e-drives, and the technology to connect the cars. at JSW, we don’t like to stay small-scale. We are going to churn the whole industry. and we will create some sort of disruption in the industry. and our idea is that we will bring out one car every three to four months. From September onwards, we will be bringing new cars, state-of-the art, which India has not seen, and we will manufacture them in India. and not only for the Indian market, but we will also export these cars to the most developed markets. Together, the technology from MG and the manufacturing capability of the JSW Group, will make us unmatchable.”
S M.Boothem and Alshaya M
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