JSW Group, which is headed by billionaire Sajjan Jindal, last year managed to acquire a 35 percent stake in the MG Motor India brand. Following this, the company revealed its ambitious plans to take over the EV market, which it has already started with the MG Windsor EV. However, even after owning MG, it has been reported that JSW Group is now looking to set up another joint venture with the Chinese automotive giant Geely to produce more electric cars in India.
JSW’s joint venture with Geely
As per the reports, JSW Group is currently in talks with the Chinese automaker Zhejiang Geely Holding Group Co., Ltd., commonly known as Geely, for a new joint venture to make electric cars in India. JSW Group has laid out an ambitious plan to set up a Rs 27,200 crore electric vehicle manufacturing facility.
Why is JSW Group looking for a new JV?
Many people might be wondering why JSW Group would want to get involved in a new joint venture with another Chinese carmaker, even though it already has a partnership with SAIC, another established Chinese automaker. Well, the answer to this is that SAIC did not let JSW Group take over the majority share of 51 percent in this partnership.
For this reason, JSW Group is now exploring this new joint venture with Geely to get more control. Also, Geely is a major automaker from China that has expertise in electric vehicle development. Hence, joining hands with Geely makes sense for JSW. Additionally, JSW Group wants to enter the EV market with one of its own brands in the country, which makes it another compelling reason to join hands with Geely.
This is not JSW’s first attempt
It must be mentioned that this is not the first time that JSW has tried to enter a joint venture to set up an electric manufacturing plant in India. The company was in talks with the American automotive giant Ford and German automaker Volkswagen. However, it could not reach an agreement with either of these carmakers.
Is it the right time for JSW to enter this JV with Geely?
As we are all aware, electric vehicle sales in India and across the globe have been slowing down. There are multiple reasons behind this slowdown, including higher upfront costs of EVs, charging infrastructure-related issues, and lower ranges of electric cars. However, despite this, JSW Group is still very keen on expanding the electric vehicle business.
Most likely, JSW Group is looking at these issues as short-term hindrances and is planning to overcome them with its joint venture. However, whether it will be able to create such electric cars that can entice Indian car buyers is something that cannot be said with a ton of certainty.
JSW MG Windsor EV is a big hit
Currently, the biggest hit from JSW MG Motor India is the Windsor EV. This electric vehicle has managed to dethrone the electric vehicle segment champion, the Tata Nexon EV. Last month, in November, the company managed to dispatch over 3,100 units of the Windsor EV. What is even more interesting is that JSW MG is the only carmaker in India that sells more electric cars than ICE cars.
The MG Windsor EV starts at Rs 11.75 lakh and goes up to Rs 13.75 lakh. It is offered with a single electric powertrain. The Windsor EV gets a front axle-mounted electric motor that is capable of producing 136 bhp and 200 Nm of torque. As for the battery, it gets a 38 kWh battery pack offering 331 km of range.
