Sajjan Jindal-led JSW Group looking to launch EV in the Rs 15-20 lakh range: Report

Sajjan Jindal-led JSW Group is planning to launch an electric car for the Indian market in the Rs 15-20 lakh price range for which it is in talks with several electric-car manufacturers in China, a report said on Thursday. 

The company is in the race to pick a stake in MG Motor India, the British marque owned by China’s largest carmaker Shanghai Automotive (SAIC), Business Standard reported. 

MG Motor acquisition is the group’s Plan A to enter the electric vehicle segment, though the acquisition would come with legacy ICE (internal combustion engines) cars too, the report said. 

In January 2023, it was reported that JSW group is looking to enter the manufacturing of electric vehicles in India. 

Jindal had first planned to enter the EV segment via his listed entity JSW Energy in 2017, but the plan was shelved within two years after some shareholders objected to it.

Earlier it was reported that Sajjan Jindal, chairman and managing director of JSW group of companies, will be taking up 45 and 48 per cent of carmaker MG Motor India, which is a wholly owned arm of the Shanghai-headquartered SAIC Motor.  

Once he acquires the stake, the company would become an Indian entity with the dealers and Indian employees owning around 5-8 per cent.  

This acquisition plan will ensure that at least 51% of the company will be in Indian control, while the Chinese will become a minority partner with a maximum holding of 49 per cent. The valuation of MG Motor under discussion is $1.2-1.5 billion. 

On the sidelines of B20 summit held last week, Jindal said: "We are extremely serious about entering the EV space. MG would be our preferred choice. If it happens, otherwise we are also working parallelly to develop our own EV cars."  

Earlier, Jindal said: "On MG Motor, if you are asking me specifically -- because I don't shy away from difficult questions -- that is also one of the companies on our list. Could be one of the options if they want to sell, but I am not sure as yet." 

The source said the acquisition could be a big deal as in the past five years, no Indian player had moved in a big way in the EV segment despite rising demand in the Indian market.

“The JSW group has also worked out Plan B in case the talks with MG Motor fail. It is just waiting for the MG Motor discussion to close either way. The Halol facility of MG Motor has the capacity to make about 150,000 vehicles per annum, and the company needs another site to expand in the future; hence the group is in talks to acquire Ford’s facility in Chennai,” said the source told Business Standard. 

Electric car sales in India touched 18,917 in the June quarter, with Tata Motors leading the pack with 10,846, followed by MG Motor at 1,902.
 
The Indian automobile market is at four million passenger vehicles per annum as of date. It will double by 2030.

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