SAIC Motor, China’s largest car maker, has set an ambitious target of producing and selling over 1 million vehicles along with its joint venture partner, JSW Group. A top executive said the company plans to invest up to USD 2 billion in this decade.
Speaking on the sidelines of the China Auto Show in Beijing recently, Yu De, GM for International Operations and the assistant to the president of SAIC Motor told Autocar Professional, “We have a very ambitious plan. We have good cooperation with JSW Group. Our target is to produce and sell over one million vehicles. We are looking at setting up a second plant in India.”
When asked what kind of investment SAIC Motor will have lined up for India, De said a minimum of 1-2 billion dollars, for the decade.
De says the aim is to offer a high-tech, affordable portfolio of products for the Indian market.
“We plan to introduce a range of products from B SUV to C SUV, including compact cars. We will offer different powertrains to offer a choice to Indian customers,” he added.
China’s largest automaker entered India in 2018 through its British brand MG Motor India. It will rely on its Joint Venture partner, JSW Group, to localise battery pack of cells for its electric vehicle endeavour.
The head of international sales says the company’s vision is to cater to the domestic market first. However, it also harbors a long-term aspiration to export vehicles to key Right-Hand Drive markets like Australia and South Africa, hinting at the venture’s potential for global expansion.
While JSW MG Motor announced an investment of Rs 5000 crore, which will go into the facility’s expansion in Halol, De says the company is open to partnering with JSW Group for localising cells and batteries.
JSW Group has announced an investment of Rs 40,000 crore in Odisha to localise cells and batteries. In March, the top company executives informed the media that the first set of localised cells would be ready by 2027.
De says SAIC, which has a 49% tstake in the joint venture, will offer full support to the JSW Group in its endeavours at the Odisha base.
When queried if SAIC will also invest equity in Odisha, De said, “Yes, that’s the plan.”
Kicking off its operations in India in March, SAIC Motor and JSW Group announced the business roadmap for their new strategic Joint Venture, JSW MG Motor India Pvt. Ltd., which will aim to capitalise on the significant opportunities emerging in the Indian automotive sector.
Parth Jindal, a Member of the Steering Committee of JSW MG Motor India, shared the company’s vision to sell 1 million vehicles by 2030, announcing the group’s entry into the automotive business.
JSW MG Motor India will leverage synergies across JSW Group’s ecosystem. The JV partners announced that it aims to introduce advanced and futuristic technologies and new-age mobility solutions while enhancing local sourcing by establishing a solid supply chain.
JSW MG Motor India aims to build a smart, sustainable EV ecosystem while continuing to stay focused on developing a diverse portfolio of vehicles tailored to meet customers’ unique preferences and requirements.
The joint venture plans to launch a new product, including (New Energy Vehicles) NEVs, every three to six months, beginning this festive season. Two new products are slated to be launched this calendar year.
These modern products with attractive value propositions have given confidence to the JV company’s foray into the premium passenger vehicle channel.
The company will expand its production capacity in Halol, Gujarat, focusing on producing NEVs, significantly increasing the production capacity from the current 1,00,000 plus to up to 3,00,000 vehicles annually.
JSW MG Motor India will strengthen its technical prowess by setting up an R&D centre that will develop connected, new-age, and local mobility solutions, giving automobile customers better access to advanced technologies and futuristic products with attractive value propositions.
The joint venture will stay focused on accelerating faster adoption of EVs, and by 2030, the company aims to take a leadership position in the NEV category with an extensive New Energy Vehicles product portfolio.