JSW MG Motor India to Invest ₹3,000 Crore by 2025, Launching MG Cloud EV This Festive Season!

JSW MG Motor India, a new partnership between MG Motor and JSW Group, plans to invest ₹3,000 crore in India by the end of 2025. This investment aims to increase production capacity and introduce nearly six new vehicles.

Investments

The investment will triple production capacity to 300,000 units per year at their Halol plant in Gujarat. It will also fund the launch of five new vehicles, including both electric and petrol/diesel models, said Rajeev Chaba, Chairman Emeritus of JSW MG Motor India.

MG Motor India has already invested ₹7,000 crore in the country. Chaba mentioned, “We are investing ₹2,000 crore to boost production in Halol. The expansion will be complete by the end of next year. The funds for the new models will be additional.”

First New Vehicle

The first new vehicle, an electric crossover utility vehicle called Cloud EV, will be launched during this festive season. This will be the first new car for the company since China’s SAIC Motor and JSW Group formed a joint venture to operate MG Motor in India.

Chaba said the company currently sells two electric cars in India, the Comet EV and the ZS EV, which are doing well. About 40% of the company’s sales come from these two models. The Comet EV costs between ₹7-9.5 lakh, and the ZS EV is priced above ₹20 lakh. The third vehicle will target customers in the ₹10-20 lakh range.

Optimistic for Growth

Chaba is optimistic about the growth of electric car sales in India, despite a slowdown in sales growth. “In the first five months, 45,000 EVs were sold, growing by about 17-18%. With new launches, we expect to sell 1,20,000 EVs in 2024, a 30% growth,” he said. EVs currently make up about 2% of all passenger vehicles sold in India, expected to rise to 15-20% by 2030. This year, the company aims to sell 70,000 units, up from 60,000 last year.

Employee Stock Options program

Additionally, JSW MG Motor India has introduced an Employee Stock Options program for its 2,500 employees to make the company more Indian. Chaba mentioned the aim is to create wealth and distribute it, similar to the “Infosys movement” in the automotive industry.

After the changes, JSW MG Motor India will be 51% owned by Indians and the rest by Chinese. “The Chinese stake may decrease further through an IPO,” Chaba added. JSW Group owns 35% of the joint venture, financial investors hold 11%, employees have 5%, and the remaining stake is held by the Chinese partner SAIC, which owns the MG brand.