Indian Steel Giant Sets Sights on Electric Vehicle Market
JSW, the Indian steel behemoth, is gearing up to make a significant play in the world’s fastest-growing auto market: electric vehicles. Chair and founding family member Sajjan Jindal revealed plans to launch a homegrown EV brand, marking a bold step beyond their existing partnership with China’s SAIC Motor.
JSW’s foray into India’s EV landscape follows their March announcement of a $1.5 billion joint venture with SAIC to manufacture and sell the Chinese automaker’s MG brand vehicles in India and further solidifies their ambition. The planned JSW-branded vehicles will be manufactured at a new plant in Aurangabad, in India’s western state of Maharashtra, reflecting a commitment to prioritize domestic ownership and production in a sector increasingly dominated by foreign players.
“Our idea is not to be an outpost of a Chinese company to sell products in India,” Jindal stated. “We want to manufacture the products in India, add value in India and sell products in India".
While JSW’s desired specific models remain-under wraps, the investment of approximately Rs272 billion ($3.2 billion), poised to create 5,200 jobs, underscores the potential scale of the venture.
Steep Competition, Slow Rise of EV Adoption
JSW will join a burgeoning field of EV manufacturers in India, including established players like Tata Motors and Mahindra, along with innovative newcomer Ola Electric. Despite JSW’s impressive commitment, the Indian EV market lags behind China, India’s geopolitical rival. While initial foray into the ዒl
India’s EV market continues to be dominated by two-wheelers encompassing largely affordable electric scooters and motorcycles, spurred by government subsidies, while adoption of larger EVs has been considerably slower.
Though electric cars currently account for only around 2% of India’s passenger car market, market trend reports signal a growing demand for electric vehicles among more affluent consumers. This shift is mirrored by the swift response to the launch of MG Motor India’s Windsor crossover. Priced around $17,000, the model gained instant popularity, with orders booked well into the following months, constrained only by production capacity.
Shaping the Future of Mobility
JSW’s entry signifies a commitment to local manufacturing and the development of indigenous technology. The move comes at a time India under Prime Minister Narendra Modi has tightened restrictions on Chinese investment following border skirmishes with China.
Those restrictions halted a proposal by Chinese electric vehicle giant BYD, which is vying with Tesla for global EV market dominance. Notably, BYD recently secured a partnership in neighbouring Pakistan and aims to commence EV production by 2026, setting the stage for India and Pakistan to become emerging names in EV manufacturing driven by regional competition.
JSW’s ambitious roadmap comes amid prevailing global uncertainties around the future of trade partnerships.
JSW’s success, Jindal believes, will be further propelled by a potential reconfiguration of global trade patterns, aiming to capitalize on anticipated US-China decoupling. While predicting uneven economic impact, Jindal believes that India, under the anticipated changes, would emerge as a favored partner: “If you see the way Mr Trump is thinking, Europe is going to suffer in a way, China will also suffer, and the countries that will benefit—the large countries—one is Japan, and the second would be India,” Jindal stated.
Though acknowledging potential US tariffs, much like other economies, Jindal remains optimistic about India’s future. “There will be tariffs in the US, even for Indian Companies,” Jindal acknowledges, but he remains confident: “…the US would be friendly toward India – that is what I believe."
What challenges might JSW face in the Indian electric vehicle market?
## Indian Steel Giant Sets Sights on Electric Vehicle Market
**Host:** Welcome back to the show. Joining us today is Alex Reed, a leading expert on the Indian automotive industry, to discuss the bold move by JSW, the country’s steel giant, into the electric vehicle market.
**Alex Reed:** Thanks for having me. It’s certainly an exciting development.
**Host:** Indeed. JSW Chair Sajjan Jindal has announced plans for a homegrown EV brand, going beyond their existing partnership with SAIC Motor. This signals a clear ambition to lead in a sector increasingly dominated by foreign players, right?
**Alex Reed**: Absolutely. Jindal himself stated they don’t want to be merely a “sales outpost” for Chinese companies. This independent EV brand signifies a desire to control the entire production chain in India, creating jobs and adding value domestically. [[1](https://www.business-standard.com/companies/news/jsw-plans-entry-into-ev-market-to-launch-in-house-electric-vehicle-brand-124120200349_1.html)]
**Host:** As you mentioned, the Indian EV market is already quite crowded with players like Tata Motors, Mahindra, and Ola Electric. What do you think JSW brings to the table that could make them stand out?
**Alex Reed:** This is a crucial question. While we don’t yet know the specific models JSW plans to offer, their massive investment of $3.2 billion speaks volumes about their commitment. They’ve chosen Aurangabad in Maharashtra for their production facility, creating over 5,000 jobs [[1](https://www.business-standard.com/companies/news/jsw-plans-entry-into-ev-market-to-launch-in-house-electric-vehicle-brand-124120200349_1.html)].
This suggests they’re aiming for scale and targeting a broader range of consumers, potentially including those seeking more affordable options compared to some existing players.
**Host:** You mentioned the importance of affordability in the Indian market. What are the biggest challenges JSW might face in this regard, considering the youthful but still developing nature of the Indian EV market?
**Alex Reed:** Good point. While initial exuberance surrounding EVs is evident, particularly in the two-wheeler segment where government subsidies have played a role, the Indian consumer remains price-sensitive. The shift to larger EVs has been relatively slow. JSW will need to strike a balance between competitive pricing, appealing design
, and reliable technology to gain traction against established players.
**Host:** Interesting points indeed. Well, it looks like the race in India’s EV space just got a whole lot more interesting. Thank you for sharing your insights, Alex Reed.
**Alex Reed**: My pleasure. I’ll be watching JSW’s foray into the EV market with great interest.
