JSW Group, an Indian enterprise in the steel and energy sectors, is in the initial stages of negotiations with the Chinese electric vehicle company, Leapmotor, to secure technology licensing for manufacturing EVs in India.
JSW plans to manufacture electric vehicles (EVs) in India using Leapmotor’s platform, which forms the foundational structure of the car. This move marks JSW’s second endeavour to tap into the expanding EV market, as they aim to establish their brand presence in the country under a technology licensing agreement.
JSW intends to utilize a unified platform capable of accommodating the production of at least three mid-sized sport-utility vehicles (SUVs). Furthermore, Leapmotor is expected to undertake the task of engineering these vehicles for the Indian company.
The group has discussed acquiring a stake in MG Motor India, a subsidiary of China’s SAIC Motor Corp, as part of India’s electric vehicle (EV) expansion strategy. However, progress on these talks has reportedly decelerated.
Although India’s electric vehicle (EV) market is currently modest, Tata Motors holds a dominant position in sales, accounting for less than 2% of total car sales in the previous fiscal year. Despite the current scale, the sector is experiencing swift expansion, and the government has set an ambitious target of elevating EV sales to constitute 30% of the overall car market by the year 2030.
JSW’s primary objective is establishing its brand presence in the automobile industry by selling cars under its label. The company emphasises acquiring the necessary technology rather than seeking investment or joining a venture with an existing car manufacturer.