SAIC-JSW India JV’s new platform adds to deepening of Auto Inc tech ties with China
New Delhi: JSW MG Motor India, the joint venture between China’s SAIC Motor and the JSW Group, has launched a new vehicle platform on which it will develop electric vehicles and hybrids, with the aim of cutting new-car development costs by more than a third, according to a top executive.
The launch of an India-tailored vehicle platform, based on Chinese automaker SAIC Motor’s global vehicle architecture, by JSW MG Motor comes as technology collaboration with Chinese partners eases amid improving geopolitical ties between New Delhi and Beijing.
The new platform development, based on SAIC’s technology, comes after Tata Motors PV confirmed that it will use the Chinese carmaker’s Chery platform for its Avinya premium EV range, and as JSW Motors prepares to launch products through a partnership with Chery. Moreover, Chinese carmaker BYD has unveiled a hybrid vehicle platform in India that will underpin some of its future products.
Developed jointly by SAIC’s global engineering teams and engineers in India, the platform, called MG Adapt, is based on SAIC’s global architecture, tweaked for Indian market requirements, and touted as the first in the sector to accommodate four different new-energy vehicle technologies.
It will accommodate electric, plug-in hybrid, range-extended electric, and hybrid vehicles. Vehicle platforms are the underlying basis of a vehicle, defining its technology and structure.
In an interview with Mint, managing director Anurag Mehrotra said that technology collaboration with SAIC’s engineering teams has become significantly easier, enabling the company to accelerate product development while strengthening engineering capabilities in India.
“It’s much better now. It is much easier now to get visas. In a distributed environment, you generally don’t need to travel as much; you do it as needed. And our teams travel very frequently. There is an exchange that happens even online. So the work doesn’t stop,” Mehrotra explained.
Faster launches, deeper localization
Mehrotra’s comment echoes the commentary of Parth Jindal, director at JSW MG Motor India, who told Mint earlier that the improvement in business ties between China and India has streamlined partnerships between companies in the two countries, providing a significant boost to JSW Group’s automotive venture JSW Motors.
Vehicle platforms are the technological and architectural basis of a vehicle, on which any model is built. In the Indian market, multiple companies, including Tata Motors and Mahindra and Mahindra, have introduced new platforms that can accommodate multiple powertrains, such as ICE and EVs, on the same platform, thus reducing the cost and time required to develop new products.
According to Mehrotra, the company will bring two new products in the financial year 2027 based on the new platform, one electric and one plug-in hybrid model, with plans for range extenders and strong hybrids depending on business plans.
“As the business case evolves and as we see response from the consumers, localize more, and the business case kind of proves out. We will look at that (expansion beyond EV and plug-in hybrid,” Mehrotra explained.
Additionally, the new platform will help companies reduce the time required to develop new products, aiding their product offensive over the next few years.
“Traditional companies will take four to five years to bring a new product out, assuming a new platform. I think we should be able to get something done in about three years with a very heavy level of localization of about 70%,” Mehrotra said.
The current localization level varies with models with the maximum at 50-60%.
JSW MG Motor will undertake ₹1,400 crore in capital expenditure during the fiscal year, as part of its long-term commitment to invest ₹3,000-4,000 crore till 2030.
Investment plans and ownership structure
JSW has two passenger vehicle businesses, JSW MG Motor India and JSW Motors, with the former a joint venture with SAIC, in which JSW holds a 35% stake, and SAIC holds a 49% stake. The rest of the stake is held by employees, dealers and financial institutions. JSW Motors is a separate venture that will roll out products through a partnership.
Geopolitical tensions with China have put the automobile sector under pressure from the neighbouring nation over technology collaboration and the export of key raw materials, such as rare earth magnets used in both ICE and electric vehicles.
Key takeaways
- JSW MG Motor launches MG Adapt platform to cut new car costs
- Platform supports four powertrains: EV, PHEV, range extender, and hybrid vehicles today
- Improving India-China ties are easing tech collaboration between JSW and SAIC now
- The company will launch two new products in FY27, one EV, one PHEV
- JSW to spend ₹1,400 crore capex as part of a bigger plan
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