JSW MG Motor Announces PHEV Launch in India
JSW MG Motor India is gearing up to release its first plug-in hybrid vehicle (PHEV) in the Indian market during 2025.
The joint venture (JV) between JSW Group and SAIC Motor, the parent company of MG Motor India, has set ambitious goals. The company aims to become the leading new energy vehicle (NEV) maker, targeting sales of 1 million NEVs, encompassing both electric vehicles (EVs) and PHEVs, by the close of this decade.
“We will bring the first PHEV in the calendar year 2025. This will be a mass market car,” said Parth Jindal, a Steering Committee Member of JSW MG Motor India. He spoke to ETAuto regarding the JV’s plans following the announcement.
Parth Jindal, Member of Steering Committee of JSW MG Motor India
This upcoming PHEV is seen as a critical product to address the current limitations of India’s charging infrastructure.
PHEVs integrate a larger battery pack compared to typical hybrid electric vehicles (HEVs). They use a battery to power an electric motor, along with a gasoline or diesel engine. These vehicles operate on electric power until the battery depletes, then automatically transition to the internal combustion engine.
Currently, battery electric vehicles (BEVs) in India are subject to a 5% goods and service tax (GST). For vehicles with internal combustion engines (ICE), the tax rate is 28% for small cars and 45% for large ones. HEVs and PHEVs are taxed at the same rate as ICE vehicles.
Recent reports indicate that the Minister of Road Transport and Highways has requested a GST reduction to 12% for hybrid vehicles.
Jindal mentioned that the company will approach the government for incentives. A minimum battery range of 150 kilometers may be considered for PHEVs to qualify for benefits similar to EVs.
JSW holds a 35% stake in the newly established entity. The remaining ownership is distributed among Indian Financial Institutions (8%), MG dealers in India (3%), MG employees (5%), and SAIC Motor (49%).
JSW MG Motor India intends to replicate the success of ‘Maruti Movement’, aiming to lead the NEV market.
JSW’s 35% stake underscores its commitment to the venture. The goal is to capture a 33% share in the NEV market by 2030, striving to sell 1 million NEVs.
According to Sajjan Jindal, Chairman of JSW Group, “Maruti brought in state-of-the-art new cars and today they are the 50% market leader. I believe that with MG we can create a new energy vehicle Maruti Movement.”
