JSW Group and MG Motor India are expected to launch their joint venture in March and will unveil their India roadmap for manufacturing and sales.
The total investment in MG Motor India will be around Rs 5,000 crore and PE investor Everstone Capital has also bought stake in MG Motor’s India operations.
MG Motor dealers and company employees can get up to 3.5 percent stake in the joint venture.
The investment will help MG Motor India expand its manufacturing and retail presence in India.
According to company CEO Emeritus Rajeev Chaba, MG Motor India expects an accelerated growth path with more aggressive expansion plans after getting JSW Group as an investor.
He said that while the company has already established a well-established foundation based on technology, customer experience, gender diversity and community service in the first phase of its journey in the country, MG Motor India is now looking towards the next phase of growth. .
“With the investor now coming in, I would definitely expect an accelerated growth path and more aggressive expansion plans. “This is what we expect and take advantage of the solid base,” Chaba told PTI in a report published on March 10.
He was responding to a question on how MG Motor India was looking forward to the arrival of the new investor, but he remained tight-lipped on the future roadmap, citing the imminent announcement of a joint venture between China’s SAIC Motor and JSW Group next week. Declined to share details.
In November last year, China’s largest automaker SAIC Motor entered into a joint venture agreement with JSW Group to accelerate the transformation and development of MG Motor in India. MG Motor is a British brand owned by Shanghai-headquartered SAIC Motor.
JSW Group will have a 35 percent stake in the Indian joint venture operations. As per the agreement, SAIC will continue to support the joint venture with advanced technology and products to provide mobility solutions focusing on Indian consumers.
In 2022, MG Motor India had announced plans to invest around Rs 4,000 crore on a second manufacturing unit, for which it was in talks with several state governments, including Gujarat, where its first facility is located.
The company, which was looking to expand the annual production capacity of its plant in Halol, Gujarat to 1.25 lakh units, was to add an additional capacity of 1.75 lakh units from the second plant and take its total capacity to 3 lakh units in two years. Wanted. Year. However, its expansion plans were delayed due to lack of funds.
Since its inception in 2019, MG Motor India has invested Rs 7,000 crore and sold around 2,00,000 vehicles in the country.
”We are very established in terms of our image and technology, new innovation and gender diversity, 37 percent women in blue collar and white collar jobs now, and what we do in community service. So the foundation has been laid,” Chaba said.
He further said, “Now we want to invest more money for development. Our quantity, we have increased every year. Since the beginning, we have grown much more than the industry, but still we could have done better if we had more expansion capacity, new products and things like that. Still, till last year we used to launch one product every year. So despite the lack of capital, we have launched a new car every year till last year.” The company sold around 60,000 units in 2023 compared to around 48,000 units in 2022.
The company has already announced that it will launch two new products this year, adding that MG Motor India will continue to participate in both the conventional engine and electric vehicle segments going forward.