'Two would be premium products and three would be mainstream products.'
Automobile manufacturer JSW MG is planning to launch five cars in the next 12 months even as it is in the process of increasing its production capacity from 100,000 units per annum to 300,000 units, its CEO Emeritus Rajeev Chaba said on Wednesday.
The first of the five cars would be a "crossover utility vehicle" and it would be launched in September or October, he added.
MG currently sells five models in India -- Hector, Gloster, Astor, Comet and ZS. The first three are internal combustion engine-run cars, while the last two are electric cars.
Chaba said about 120,000 electric cars are expected to be sold in India in 2024, recording a growth of about 30 per cent Year-on-Year (Y-o-Y).
"The growth would not be as high as in 2023," he mentioned. In 2023, the growth in electric car sales stood at about 90 per cent.
In March this year, the Sajjan Jindal-owned JSW Group acquired a 35 per cent shareholding in the car company.
Financial institutions acquired an eight per cent shareholding, five per cent was allotted to employees, and three per cent was given to its dealers.
Therefore, the shareholding of its Chinese parent SAIC in the Indian unit has reduced to 49 per cent.
"JV was declared in March. We should expand fast. As we speak, the second plant is being set up in Halol. Our total capacity will increase from 100,000 units per annum to 300,000 units per annum. When you have such a capacity, you need to have products to fill the plant," Chaba told reporters.
"One of the biggest priorities of the joint venture is to get approval of the new products. I am happy to announce that we have got five of our new products approved that will be launched in the next one year," Chauba added.
"Out of this, two would be premium products and three would be mainstream products," he added.
The first product would be launched in the festive season, in September or October, he noted.
"It is a crossover. It is a CUV. Why CUV? Because it has the comfort of a sedan and the utility and benefits of an SUV. Just imagine a SUV, with a huge inside space. It will be loaded with features... I can't give details about other products," he added.
JSW Group had in March announced plans to invest $5 billion by 2030 in a joint venture aimed at selling 1 million 'new energy vehicles' (NEVs) -- which include electric cars and hybrid cars.
The auto industry is currently divided over the issue of tax reduction for hybrid cars.
Japanese giants like Maruti Suzuki and Toyota are advocating for tax cuts on hybrids, arguing that EVs alone cannot achieve the necessary emission reductions.
However, homegrown players like Tata Motors and Mahindra & Mahindra oppose these tax cuts, insisting that only a full commitment to EVs can truly decarbonise India's roads.
On this issue, Chaba suggested that the government should rethink its approach to taxation.
"Till now, taxation has been based on the size of the engine, length of the car, etc. If someone asks me what the taxation should be based on, we should consider four factors: Environmental friendliness of the technology, the impact on fuel import bills, localisation levels in terms of supply chain, and total cost of ownership," he noted.
This means that if CNG is better than petrol when analySed for these four factors, it should receive tax benefits. Similarly, if a hybrid car outperforms CNG on these parameters, it should get more tax benefits, he explained.
Chaba also stated that the auto industry in India should expect a 7 to 8 per cent growth in passenger vehicle sales this year, considering the high base effect, capacity increases, and high stock levels with dealers.
He acknowledged that dealers are unhappy due to high stock levels.
"Our situation is a bit better. Our dealers have stocks for 30 to 35 days, while at the industry level, stocks are at 60 to 65 days... We are working not only to re-energise our dealer network but also to ready them for significant expansion, keeping in mind the many launches we have planned."
Feature Presentation: Ashish Narsale/Rediff.com
