Sajjan Jindal, the son of India’s richest woman, Savitri Jindal, is steering his Mumbai-based steel-and-energy giant JSW Group into making cars. In March, he bought 35% of MG Motor India from China’s SAIC Motor for an undisclosed amount.
Read the full story on Forbes: https://www.forbes.com/sites/gloriaharaito/2024/10/09/whats-driving-the-son-of-indias-richest-woman-to-pour-billions-into-evs/
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Read the full story on Forbes: https://www.forbes.com/sites/gloriaharaito/2024/10/09/whats-driving-the-son-of-indias-richest-woman-to-pour-billions-into-evs/
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MotorTranscript
00:00Today on Forbes, what's driving the son of India's richest woman to pour billions
00:06into EVs?
00:09Sajan Jindal, the son of India's richest woman Savitri Jindal, is steering his Mumbai-based
00:15steel and energy giant JSW Group into making cars.
00:20In March, he bought 35% of MG Motor India from China's SAIC Motor for an undisclosed
00:26amount.
00:28Parth Jindal, son of Sajan and a director of the renamed JSW MG Motor, is especially
00:34bullish on the electric vehicle market as India promotes the industry to reduce its
00:39dependence on imported crude oil.
00:41He says, quote,
00:42When the transition to EVs started happening, we felt the playing field was becoming a lot
00:47more even, because for an established car player to get into EVs, or a new player, it's
00:52almost one and the same thing.
00:55SAIC retains 49% in the joint venture, while Singapore-based private equity firm Everstone
01:01Capital holds 8%, employees 5%, and MG car dealers 3%.
01:08JSW Group is injecting roughly $1.8 billion into JSW MG Motor to stoke production capacity
01:16to 300,000 units a year by 2026 and 1 million by 2030, compared with 100,000 units currently.
01:25The joint venture has a sole factory in the state of Gujarat, but plans to build another
01:30one nearby as it aims to launch a new model every three to six months.
01:35To reduce costs, the joint venture will buy more local parts, including materials from
01:39JSW Group.
01:42In March, India lowered import duties on certain EVs made by carmakers that agree to invest
01:47at least $500 million and start manufacturing within three years.
01:53Karth says that the government, quote,
01:55"...must push automakers to bring their technology into our country.
01:58That is the only way we'll be able to achieve India's objectives of transitioning from engines
02:03to EVs."
02:06According to the Society of Indian Automobile Manufacturers, domestic passenger car sales
02:11jumped 8% in the year ended March 31st, to 4.2 million units.
02:17EVs accounted for 2% of the total.
02:20According to Singapore-based research firm Canalys, India sold more than 29,800 EVs in
02:26the first quarter of 2024, up 37% on-year.
02:31Tata Motors dominated the EV market in the first quarter of 2024 with a 67% share, while
02:38billionaire Anand Mahindra's firm Mahindra & Mahindra and JSW MG Motor were in second
02:44and third place, respectively, with 13% each.
02:49They were followed by Citroën at 3% and other brands with 4%, according to Canalys.
02:56JSW MG Motor has three EV models, the ZS SUV, the Comet small car, and the recently launched
03:04midsize Windsor crossover utility vehicle.
03:08Karth predicts passenger car sales will balloon 67% to 7 million vehicles by 2030, with EV
03:15sales surging to between 2 million and 2.5 million units.
03:20He says, quote,
03:21We would like to be selling 600,000 vehicles by 2030.
03:25He adds,
03:26Of that, 75% will be EVs.
03:30He expects JSW MG Motor to post a 10% rise in revenue to nearly $1.5 billion in the year
03:37to March 31, 2025, and grow tenfold thereafter, to $15 billion in fiscal 2030.
03:45He says it will list in three to five years, and while it has not yet set a funding target,
03:50quote,
03:51Auto companies in India are trading anywhere between 2 to 3 times revenue, so that would
03:55be our aim.
03:58For full coverage, and to see Forbes Asia's India's Richest 2024 list, check out Gloria
04:03Jareto's piece on Forbes.com.
04:07This is Kieran Meadows from Forbes.
04:10Thanks for tuning in.