The joint venture between India's JSW Group and MG Motor, which is owned by China's SAIC Motor, is targeting 1 million electric vehicles sold in India by 2030, an executive for the JSW Group said on Wednesday.
The venture plans to foray into the premium passenger vehicle segment, the companies said in a joint statement.
MG Motor has two electric car offerings in India: the Comet EV, a small car, and the ZS EV, which is an SUV.
The announcement comes amid a change in the EV landscape in the country. Last week, India lowered import taxes on certain electric vehicles by carmakers that commit to invest at least $500 million and start domestic manufacturing within three years.
The policy is a big win for Tesla, as it helps enable the company's plans to enter India. Despite the threat of increased competition, analysts have said the impact on vehicle sales for domestic players could be limited to largely makers of pricier vehicles.
Electric models made up about 2% of total car sales in India in 2023, with the government targeting 30% by 2030.