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JSW Group on Wednesday announced that a joint venture with MG Motor aims to achieve sales of 1 million electric vehicles in India by 2030 and capture a significant share in the market.
According to a JSW executive, the joint venture plans to enter the premium passenger vehicle segment as they will launch their latest model, a sports car called the “Cyberster EV”.
During a media event for the launch, MG Motor India Managing Director Rajiv Chaba said that both the companies will collectively invest in Rs 5,000 crore in joint venture.
JSW Group Chairman Sajjan Jindal said the JV will revolutionize India’s EV sector, just as Maruti Suzuki disrupted the automotive market four decades ago with its “very efficient, very light cars”.
The Center recently approved a new policy for electric vehicles, which provides duty concessions on imported cars to companies that invest a minimum of USD 500 million to set up manufacturing units in India.
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India’s new EV policy
• The government announced that under the new policy, foreign companies will have to commit to investing a minimum of $500 million or approx. Rs 4,150 crore in investment and manufacturing facilities within three years to qualify for import tax concession.
• Duty concessions on total imported electric vehicles (EVs) are limited to the investment made Rs 6,484 crore, whichever is less, is equal to the incentive under the Production Linked Incentive (PLI) Scheme.
• If investment exceeds US$800 million, a maximum of 40,000 EV imports will be allowed over five years. These imports will be subject to a reduced tax rate of 15 percent on cars priced at $35,000 and above, with an annual limit of not more than $8,000. Unutilized annual import limit is allowed to be carried forward.
Also read- Delhi government made rules for confiscation, scrapping and re-use of old vehicles.
MG Motor-JSW Enterprises
The share of EVs in total car sales in India was around 2 percent in 2023, with the government targeting 30 percent share by 2030.
MG Motor, a subsidiary of China’s SAIC Motor, currently offers two electric models in India: the compact Comet EV and the ZS EV, an SUV. The collaboration with JSW is expected to increase MG Motor’s annual production capacity from 100,000 to 300,000 units, according to a joint statement. However, no specific target date has been provided for this expansion.
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SAIC Motor and JSW formed a joint venture (JV) in December last year, in which JSW Group held a 35 per cent stake.
India’s competition regulator in January approved JSW’s acquisition of 38 percent stake in MG Motor India. The JSW Group comprises various companies, including JSW Steel, India’s largest steelmaker by capacity, operating across multiple sectors.
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