JSW MG Motor India is the new entity formed as a result of the joint venture between the Chinese giant SAIC and the Indian JSW Group. The former is a Chinese automobile conglomerate which operates MG Motor. There are tons of other popular car brands under SAIC including IM, Maxus, MG, Rising, Roewe, Baojun, Wuling and more. With JSW Group, the duo will invest in developing infrastructure for NEVs (New Energy Vehicles). In fact, they plan to launch a new NEV every 3 to 6 months starting September. The group will expand its current production capacity from 1,00,000 to 3,00,000 annually at hits Halol plant in Gujarat. It will focus on introducing affordable cars on the back of high localization.
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JSW MG Motor India
As a part of this JV, the Indian entities will hold a 51% share of the new company. This will be bifurcated as – 35% by JSW Group, 8% by domestic financial institutions, 5% by MG Employees and 3% by dealers. The rest 49% will be with SAIC. It could further dilute its share over the next few years through a series of steps which could also include an IPO. The JV will adopt the Maruti Suzuki approach in our market. Back in the early 1990s, Ambassadors and Fiats were all the rage. Maruti Suzuki came in and started offering lightweight, highly efficient cars at affordable prices. Today, it is the market leader in one of the biggest automobile markets in the world.
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Similarly, JSW MG Motor India wants to replicate that strategy and hopefully, the success in the future. Today, since we live in the age of electrification, this new entity will focus its energy and resources on developing NEVs to power future mobility. On this occasion, Parth Jindal, a Member of the Steering Committee of JSW MG Motor India, said, “With MG, my dream is that we will recreate a Maruti movement. Like 40 years ago when Maruti came to India, it changed the auto industry by bringing in very efficient and lightweight cars. Ambassadors and Fiats went into oblivion as Maruti brought in state-of-the-art new cars. And today, they are the market leaders. So, I believe with MG, we can create a New Energy Vehicles (NEVs) Maruti movement.”
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Author’s Note
The primary aim of this fresh collaboration is to shape the electric future of mobility, with a specific emphasis on premium EVs. In fact, the company showcased the well-received MG Cyberster as a show car during this event, offering a glimpse into what the future holds. We’ll need to exercise some patience to learn more about the results of this intriguing joint venture. It would also be clear how well the potential customers will react to this new entity after it launches a few vehicles in our market.
