JSW Group, a leading Indian steelmaker, is set to launch its own electric vehicle (EV) brand, marking a significant step towards becoming a key player in India’s rapidly expanding EV sector. This announcement comes just months after JSW entered into a $1.5 billion joint venture with China’s SAIC Motor to produce and sell Morris Garages' (MG) electric vehicles in India.
The move to create an in-house EV brand follows JSW’s broader plans to tap into the burgeoning electric vehicle market. Although Sajjan Jindal, the chairman and owner of JSW, did not share specific details on the investment or the types of vehicles that will be produced, he confirmed that the company is set to enter the competitive Indian EV market. The company will join established players like Tata Motors, Mahindra, and Ola Electric.
In October, JSW received a warm welcome from the industrial park in Aurangabad, Maharashtra, which highlighted a proposed investment of Rs 272 billion ($3.2 billion) to manufacture both electric and commercial vehicles, as well as create 5,200 new jobs in the region.
Despite the surge in sales of battery-powered two-wheelers in India due to government subsidies, the demand for full-sized electric cars has been slower. In contrast, China’s government incentives have led to a much quicker adoption of EVs, making the country a dominant player in the electric vehicle industry.
Currently, electric car sales in India are still relatively low, totaling about 100,000 units per year, which accounts for just 2 percent of the passenger car market. However, the sales trend is beginning to pick up, particularly among the more affluent consumers. In September, MG Motor India launched its Windsor crossover EV, which was fully booked for several months after its launch, with a production limit of 50,000 units this year due to capacity constraints at its Gujarat plant.
The Indian government, led by Prime Minister Narendra Modi, has taken a firm stance against Chinese companies, especially in light of the geopolitical tensions with China. Last year, India vetoed a proposal by Chinese EV manufacturer BYD to set up a plant in Hyderabad in partnership with Megha Engineering. Meanwhile, BYD has turned to Pakistan for its EV production plans.
SAIC, the Chinese carmaker, joined forces with JSW after facing challenges with government regulations and funding for its India operations. However, the Chinese company has not responded to requests for further comment on the matter.
Looking ahead, Jindal also spoke about the US-China trade situation under former President Donald Trump, calling it a potential opportunity for India. He suggested that the US would continue to be "friendly" towards India, despite tariffs on goods from both China and India, which he believes will benefit both countries in the long run.
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