Zoom News : Dec 03, 2023, 06:00 AM
Sajjan Jindal Group: Tata Group and Mahindra Group may face a strong challenge from Jindal Group in the coming days. Sajjan Jindal Group has been planning to enter the country's rapidly growing auto sector for a long time. Now this path seems to be opening. The big thing is that Jindal Group's focus is on the electric vehicle segment in which both Tata and Mahindra already have dominance.Actually, Sajjan Jindal Group is going to buy 35% stake in the Indian business of MG Motor. MG Motor entered the Indian market in 2019. Although it is a British brand, but its owner is SAIC of China. The Chinese company wants to make its business a little Indian and Sajjan Jindal is going to be its partner.Jindal's entry will create a stirMG Motor's Hector model has been liked a lot in the Indian market. People's madness about its recently launched electric car MG Comet is not hidden from anyone. Along with this, its Aster and ZS EV models are also being liked a lot in India. According to ET news, Jindal's entry will help MG expand its business in India.Jindal Group has a dealer network for delivery of its steel products across the country. Due to this, it has reach in most of the cities of the country, due to which MG Motor will be able to expand rapidly across the country. By selling the stake to Jindal, it will have ample funds so that it can also focus on new innovations.Will the challenge of Tata-Mahindra increase?Sajjan Jindal Group's investment in this sector will increase the challenge for Tata and Mahindra Group. Tata Motors is currently the country's largest company in the electric vehicle segment. Mahindra & Mahindra has recently entered this segment again. At the same time, it is going to introduce many new electric cars in the ‘Born Electric’ category.On the other hand, MG Motor currently has 5 models available in the country. The company has set a target of doubling its portfolio by 2028. The company is going to launch 4 to 5 new models, a glimpse of which it had shown in this year's Auto Expo. Most of these models are electric. Getting new capital will help the company to launch these in the Indian market soon and increase its sales.MG Motor had sold 48,000 cars in 2022. This year it is expected to sell 80,000 to 1,00,000 units. The company plans to invest Rs 5,000 crore in India. It will be used to set up another manufacturing unit in Gujarat and expand the network.