The joint venture plans to launch a new product, including NEVs, every three to six months starting this year, with two new products to be launched this year.
(Image credit: CnEVPost)
SAIC Motor Corp (SHA: 600104) has finalized its automotive joint venture JSW MG Motor India Pvt Ltd with Indian steelmaker JSW Group to produce MG-branded electric vehicles (EVs) locally.
The joint venture plans to launch a new product, including NEVs, every three to six months starting from this year's festive season, with two new products to be launched this year, JSW said in a March 20 statement.
With the joint venture, the two hope to take MG to a new phase of growth in India to capitalize on the opportunities emerging in the fast-growing Indian auto sector.
MG India 1.0 has had a good 5 years and now the joint venture needs to make MG 2.0 even more impactful and successful, Parth Jindal, Member of Steering Committee of JSW MG Motor India, said.
The joint venture will expand its capacity in Halol, Gujarat, with a focus on NEVs (NEVs). This will result in a significant increase in capacity to 300,000 units annually from the current 100,000-plus units, according to the statement.
JSW MG Motor India will focus on enhancing research and development and technological advancements by setting up an R&D center to cater to the different options available to car buyers, the Indian steelmaker said.
SAIC invested RMB 3.28 billion ($454 million) in 2017 to set up MG India as a wholly-owned subsidiary in India, including a vehicle manufacturing base and a supplier park.
In 2019, the first model offered by MG India, the MG Hector, was launched into the market. MG India sold 48,000 units in 2022, up 19.1 percent year-on-year.
MG India sold 52,000 units in January-October 2023, up 29.7 percent year-on-year, according to figures announced by SAIC in November last year.
On November 30 last year, SAIC said it would bring in JSW as a strategic investor to further support MG India in expanding its market share through a capital increase.
Upon completion of the capital increase, JSW will own 35 percent of MG India, SAIC said previously.
($1 = RMB 7.2176)
