JSW MG Motor India has aimed to target 70-80% of sales from new energy vehicles in the coming years, according to MD and CEO Anurag Mehrotra. The expectation is based on a fundamental market shift: electric vehicles have achieved price parity with their internal combustion engine counterparts in comparable segments.
“If you look at a 4.3 meter car like Windsor, a similar petrol automatic you compare it to, you will find that the EV is already cheaper,” said Mehrotra in an interview with Autocar Professional’s Ketan Thakkar at the 65th SIAM Convention, adding that the development can reshape India’s automotive landscape.
The comment comes at a time when India’s passenger vehicle market has been seeing tepid growth. “At the end of last year all of you reported that EV as a percentage of total industry was 2.5%, first quarter Jan to March it was about 3 odd percent, second quarter about 4 odd percent and last month in August despite the announcement, it crossed the 6% threshold,” Mehrotra noted. This represents tremendous progress in a market where, until 2022, EVs struggled to exceed 1% of total passenger vehicle sales, constrained by high acquisition costs, limited charging infrastructure, and consumer apprehension.
The rapid rise indicates an inflection point has been reached, with MG Windsor, launched as part of JSW MG’s new energy vehicle strategy, emerging as a key catalyst in this.The pricing of the vehicle, starting at Rs 9.99 lakh, challenged the prevailing assumption that EVs must command a premium over conventional vehicles, contributing to MG’s market share growth from sub-10% two years ago to 30% currently.
The lower upfront cost is in addition to the already favorable total cost of ownership, according to Mehrotra’s analysis. Operating costs for EVs are approximately ₹1.2 per kilometer compared to ₹6.7 per kilometer for petrol vehicles, translating to annual savings exceeding ₹80,000 for average users driving 15,000 kilometers yearly. Maintenance costs present an additional advantage, with EVs requiring approximately one-tenth the maintenance expenditure of conventional vehicles due to fewer moving parts and the absence of traditional service requirements such as oil changes and transmission maintenance.
These economic fundamentals remain robust despite recent GST rate reductions of 10-15% on conventional vehicles, implemented in September 2024. Mehrotra expressed confidence that the value proposition for EVs remains intact, stating that “the benefits still exist and are substantial.”
Strategic Framework and Implementation
JSW MG Motor’s strategic realignment follows a structured approach based on the Roger Martin framework of “where to play and how to win.” Mehrotra elaborated on the timing and process: “When we were formulating our strategy in March of 24, when the JV got formed, we used the Roger Martin framework to say where to play and how to win and the where to play was clear to us, we have a very high success possibility if we stick to the new energy space.”
The company has identified new energy vehicles as its primary competitive arena, leveraging technology access through parent company SAIC to accelerate product development and market introduction.
The strategy encompasses multiple market segments through a differentiated channel approach. While the core brand focuses on mass-market EVs, the newly established MG Select premium channel targets luxury segment buyers with products such as the Cyberster sports EV and M9 electric MPV. Initial results indicate strong market reception, with “over 170 odd units” sold in the first month. Mehrotra acknowledged supply constraints, stating “we could have done more, it is just that we were constrained on the supply side.”
However, the company maintains that 20-30% of its portfolio will continue to comprise internal combustion engine vehicles, acknowledging the transition period required for complete market transformation.
This balanced approach allows the company to serve diverse customer segments while progressively shifting toward electrification. Mehrotra identified two primary operational priorities for JSW MG Motor: “accelerated development of product is one and the second is profitability through higher levels of localization.” These priorities reflect the dual challenge of maintaining competitive advantage while improving unit economics in a rapidly evolving market.
The company’s access to SAIC’s technology portfolio enables faster time-to-market for new products, with Mehrotra emphasizing: “Given the fact that we have access to deep technology both that is scaled and matured through our parentage of SAIC, we believe we will be able to bring product to market much faster and matured products to market.”
The transformation of India’s automotive market from ICE dominance to increasing electrification represents a fundamental shift in industry dynamics. Traditional value chains centered on engines and transmissions must evolve toward battery and motor technologies. Service-oriented business models must adapt to reduced maintenance requirements of electric vehicles.
JSW MG’s 70-80% new energy vehicle target may prove to be either prescient or conservative, depending on how rapidly market dynamics evolve. However, the direction of travel appears clear: electrification is transitioning from niche to mainstream, driven by economic logic rather than regulatory mandate alone.