Promoter entities of JSW Group are reportedly in discussions with multiple electric car manufacturers in China to introduce an electric vehicle (EV) in the Indian market priced between Rs 15-20 lakh. At the same time, the group, led by Sajjan Jindal, is also exploring a significant stake acquisition in MG Motor India, the makers of MG ZS EV and Comet. This strategic move aligns with the group’s focus on making a robust entry into the EV sector.
Potential MG Motor Stake Acquisition
The JSW Group is in talks to secure a substantial stake in MG Motor India. The Chinese promoter of MG Motor could maintain a minority stake if the negotiations succeed. The valuation under discussion ranges between $1.2 billion to $1.5 billion. This acquisition is part of the group’s primary strategy (Plan A) to enter the EV domain, even though it involves internal combustion engine (ICE) vehicles.
Contingency Plans and Future Expansion
In case the MG Motor discussions do not materialize, the group has a contingency plan (Plan B) in motion. The group is evaluating opportunities to acquire Ford’s manufacturing facility in Chennai. This strategic move is driven by the necessity to secure additional production capacity for future expansion.
Indian EV Market and JSW’s Strategy
JSW Group perceives a significant untapped opportunity in India’s electric vehicle market. The group anticipates that approximately 30% of the projected eight million vehicles on Indian roads by 2030 will be EVs or powered by alternative fuels. Considering profitability and scalability, the group looks to China as a model to launch EVs at competitive price points.
Ford India’s Facility in the Equation
Amid delayed MG Motor discussions, JSW Group has engaged in negotiations to acquire Ford India’s manufacturing facility located near Chennai. This move follows Ford’s announcement to withdraw from India and halt vehicle manufacturing in the country. The 350-acre Chennai unit has an annual production capacity of around 200,000 vehicles and 340,000 engines.
JSW Group’s strategic pursuits in India’s EV landscape reflect a larger industry trend of companies seeking a prominent presence in the growing electric vehicle market. As EV adoption continues to rise, India’s automotive landscape is poised for a transformation.
