JSW plans entry into EV market, to launch in-house electric vehicle brand

JSW had earlier announced a $1.5 billion joint venture with SAIC Motor, the Chinese automaker behind the MG brand, to produce and sell MG EVs in India

India’s steel giant JSW Group plans to enter the electric vehicle (EV) market under its brand, reported The Financial Times on Monday. In an interview, Chairman Sajjan Jindal signalled JSW's aim to establish itself as a key player in India’s growing EV industry.

 

This move follows JSW’s earlier announcement of a $1.5 billion joint venture (JV) with SAIC Motor, the Chinese automaker behind the MG brand, to produce and sell MG EVs in India.

 

JSW to manufacture EVs in Maharashtra

JSW plans to establish its EV production facility in Maharashtra's Aurangabad, specifically for its in-house brand. The Aurangabad Industrial City (AURIC) confirmed the company’s investment of Rs 27,200 crore ($3.2 billion), expected to create over 5,200 jobs and manufacture both passenger and commercial EVs, the report said.

 

 

India's EV Market

While battery-powered two-wheelers have gained immense popularity in India, adoption of full-size EVs remains slow. EVs currently account for just 2 per cent of passenger car sales, translating to around 100,000 units annually, according to S&P Global Mobility, as reported by The Financial Times.

 

Comparatively, in China, generous subsidies and incentives have driven mass EV adoption. China has the largest EV industry in the world, accounting for about 58 per cent of global production, according to a report by Al Jazeera. Elon Musk-led Tesla continues to lead the EV market in the United States.

 

However, rising interest among affluent Indian buyers is boosting demand. For instance, MG Motor India’s Windsor crossover EV, priced at Rs 13.5 lakh, was fully booked for the next few months following its September launch, despite capacity constraints at its Gujarat plant limiting sales to 50,000 units.

 

Other car manufacturers who have already entered the EV market in India include industry majors Tata Motors, Mahindra & Mahindra, and newcomers like Ola Electric. Other players include two-wheeler market leader Hero Electric and Ashok Leyland, which is focused on electric buses under the Switch Mobility brand.

 

Meanwhile, Maruti Suzuki is also exploring or expanding their EV offerings.

 

EV prices in India start at Rs 6.9 lakh, depending on the model and offerings.

 

Indian govt's EV push

India’s EV push has been supported by government subsidy initiatives such as the 'faster adoption and manufacturing of electric vehicles' (Fame) scheme, which offered subsidies to manufacturers and buyers. The second phase concluded earlier this year and was followed by a temporary Electric Mobility Promotion Scheme (EMPS) that also ended in September. The third phase of Fame is expected to be cleared by the end of the year.