One of India’s leading cement industry giants and MG Motors India, a subsidiary of SAIC Motors, the largest automotive manufacturer in China, have come together to give India another “Maruti Moment.” This partnership aims to produce both electric and internal combustion engine cars in India.
JSW Group And MG Motors
JSW Group acquired a 35% stake in MG Motors India from SAIC Motors, making a strategic move to enter and disrupt the automotive industry. This partnership is challenging directly to the top competitors of the industry, like Suzuki, Tata, Mahindra, etc. They are aiming to lead the market by launching a series of new car models at a very rapid pace, which is very similar to Maruti’s past strategy when they disrupted the market.
EV Revolution
The joint venture is putting its focus more on EVs, as we can all see a global shift towards electric vehicles (Vs). India and its government are also emphasizing the promotion of EV vehicles. They are planning to launch cars with international standards and create an EV revolution in India.
The company is planning to diversify its portfolio by venturing into premium passenger cars alongside EVs. They are aiming to provide a wide range of products to every consumer in India and capture a considerable market share.
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5000/- Crore Investment
To support this ambitious plan, they will invest 5000/- Crores to enhance production capacity and launch new products. This includes introducing a new production line in Gujarat.
MG Motors India has had steady growth in the market since its entry in 2019. They have sold around 2 lakh units of their car so far. The partnership aims to accelerate this growth further and will focus more on electric vehicle sales. They intend to increase their market share by 2028, which currently stands at 2%.
Government Support To EV
Lately, the Indian government has been punching the EV sector by introducing new policies and subsidies, which can further help the company. India’s increasing demand for EV vehicles will be a way for companies to capitalize with the help of the government, which is targeting a significant share of EV vehicles on the road by 2030.
What do you think? Why is it called the “Maruti moment”?
