Summary
- Sajjan Jindal, son of India’s richest woman, is steering JSW Group into the car industry by buying a stake in MG Motor India
- Parth Jindal, director of JSW MG Motor, sees great potential in the electric vehicle market in India
- JSW Group is investing $1.8 billion to increase production capacity to 300,000 units per year by 2026 and 1 million by 2030
- India has lowered import duties on EVs to encourage investment and local manufacturing
- JSW MG Motor aims to sell 600,000 vehicles, with 75% being EVs, by 2030 and post revenue of $15 billion in fiscal 2030
Article
Sajjan Jindal, the son of India’s richest woman, Savitri Jindal, is leading his family’s Mumbai-based steel-and-energy giant, JSW Group, into the automotive industry by acquiring a 35% stake in MG Motor India in March. This move comes as India promotes the electric vehicle (EV) industry to reduce its dependence on imported crude oil. Parth Jindal, Sajjan’s son and a director of the renamed JSW MG Motor, is optimistic about the potential of the EV market, citing the leveling playing field between traditional and new car players in this space.
JSW Group is investing approximately $1.8 billion into JSW MG Motor to expand production capacity to 300,000 units per year by 2026 and 1 million units by 2030. The joint venture, which currently operates a single factory in Gujarat, plans to open another nearby facility and introduce a new model every few months. To cut costs, JSW MG Motor will increase the use of local parts, including materials from within the JSW Group. India’s recent reduction in import duties on certain EVs is expected to further boost the industry, provided carmakers commit to significant investments and domestic manufacturing.
According to the Society of Indian Automobile Manufacturers, domestic passenger car sales increased by 8% in the fiscal year ending March 31, reaching 4.2 million units, with EVs accounting for just 2% of total sales. Tata Motors led the EV market in the first quarter of 2024, followed by Mahindra & Mahindra and JSW MG Motor. The latter has three EV models in its lineup and aims to increase its market share significantly in the coming years. Parth predicts that passenger car sales will reach 7 million vehicles by 2030, with EV sales making up a substantial portion of that figure.
JSW MG Motor is targeting revenues of nearly $1.5 billion in the fiscal year ending March 31, 2025, with plans for significant growth thereafter. Parth envisions revenue reaching $15 billion by fiscal 2030, with 75% of sales coming from EVs. The company intends to list on the stock exchange in three to five years and expects to command a valuation based on industry standards of two-to-three times revenue. Overall, the joint venture is striving to establish itself as a major player in the Indian EV market, capitalizing on the country’s push towards reducing emissions and promoting sustainable transportation options.
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