JSW-MG Motor Joint Venture to foray into premium EV space
The JSW-MG Motor India joint venture (JV) is expected to apply for the new electric car production policy. According to sources, the JV is considering importing high-end, premium electric vehicles into India.
The JV intends to debut a mainstream or mass-market car before the holiday season in 2024, as well as a high-end electric convertible known as the Cyberster in early 2025. The Cyberster, a car costing above Rs 50 lakh, is expected to be imported into India due to its limited volume and specialized market. However, MG Motor India did not react to CNBC-TV18's inquiries, and the JSW Group declined to comment.
India's new electric vehicle manufacturing policy provides duty reductions ranging from 100 to 15 percent for fully constructed electric automobiles with a minimum financial commitment of Rs 4,150 crore. The applicant must provide a bank guarantee in the comparable amount, which will be forfeited if the firm does not reach 25 percent domestic value addition and begin production within three years. Every candidate must add 50 percent to the domestic value within five years of joining India.
According to sources, the JSW Group and MG Motor India JV would likely establish two verticals, one for popular automobiles and the other for premium cars. The joint venture seeks to localize and reach 90 percent of total sales volumes from mainstream automobiles priced under Rs 20-21 lakh. Premium or high-end automobiles are estimated to account for 10 percent of overall sales volumes.
The JV business is likely to apply for both the PLI Automotive and the Battery PLI programs.
SAIC, which owns MG Motor's global subsidiaries, has facilities in Thailand, Indonesia, China, and India. SAIC is also exploring opening a facility in Europe. If the joint venture intends to import fully assembled electric vehicles, it may contemplate importing from any of the jurisdictions where it has plants.
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