Sajjan Jindal, the son of India’s richest woman, Savitri Jindal, is leading his company, JSW Group, into the automotive industry by purchasing a 35% stake in MG Motor India in March. The move comes as India promotes electric vehicles to reduce its dependence on imported oil. Sajjan’s son, Parth Jindal, who is a director at the newly renamed JSW MG Motor, is optimistic about the electric vehicle market and believes that the playing field is becoming more even for both established car players and newcomers in the EV space. The joint venture, which includes partners SAIC Motor, Everstone Capital, employees, and MG car dealers, plans to increase production capacity to 300,000 units annually by 2026 and 1 million by 2030.
JSW Group is investing approximately $1.8 billion to expand production capacity and aims to launch a new model every three to six months. The joint venture also plans to purchase more local parts, including materials from JSW Group, to reduce costs. In March, India reduced import duties on certain EVs, incentivizing carmakers to invest at least $500 million and begin manufacturing within three years. Parth believes that the government must push auto majors to bring their technology into the country to achieve India’s objectives of transitioning to EVs from engines.
According to the Society of Indian Automobile Manufacturers, domestic car sales increased by 8% in the year ending on March 31 to 4.2 million units, with EVs accounting for 2% of the total. Tata Motors held the largest market share in the EV market in the first quarter of 2024, with Mahindra & Mahindra and JSW MG Motor following in second and third place, respectively. JSW MG Motor currently offers three EV models and predicts a significant increase in passenger car sales by 2030, with EV sales expected to surge to between 2 million and 2.5 million units.
Parth anticipates a 67% increase in passenger car sales to 7 million vehicles by 2030, with 75% of JSW MG Motor’s projected 600,000 vehicle sales being EVs. The company is expected to see a 10% growth in revenue to nearly $1.5 billion in the year ending on March 31, 2025, with a tenfold increase to $15 billion by fiscal 2030. He also mentions plans to list the company in the next three to five years, with a funding target aimed at achieving a revenue multiple similar to other auto companies in India. The ambitious growth plans highlight JSW MG Motor’s commitment to the rapidly growing EV market in India and its efforts to establish a strong presence in the industry.
