Into JSW's Plans To Build EVs: Chery iCar03 And V23 Electric SUVs Coming Soon?
JSW ranks among India's top business houses. It has its presence in various industries like steel, energy, infrastructure, cement, paint and more. It made its entry into the automotive space by forming a joint venture with MG Motor India in 2023. JSW and its helmsman have since been vocal about their ambitions of building their own cars and new-energy vehicles. If recent reports are to be believed, JSW could be inching towards the realisation of these. A report by Bloomberg says that China’s Chery Automobile Co. will supply JSW with technology and components to build its own electric vehicles. Let's give you some context before taking a deep dive into the company's EV plans.
The Context
JSW's 'own car' dreams reportedly landed them in multiple early discussions with several manufacturers for potential joint ventures. In a previous story, we explained how the conglomerate is trying to explore a JV with Renault SA.
When the JV with MG was formed, JSW had 35 per cent stake in MG. Jindal has since been vocal about his intentions to grow this to levels that would let JSW exercise control over MG and its operations. He also made it clear that if this didn't happen, he would explore other opportunities that would eventually let him build his own EV.
Reports also suggest that JSW could be in talks with Geely, another Chinese auto major, for a possible joint venture. This could possibly be with the hope that Geely's rich expertise in making vehicles could facilitate JSW's smooth entry into EV manufacturing.
The Chery Business!
For the uninitiated, Chery is quite big in China. In 2024, it sold 2.6 million vehicles and became the fourth largest automaker in the country. Headquartered in Wuhu, it has also ranked as China's top passenger car exporter for 21 consecutive years.
The Bloomberg report claims that under an agreement between Chery and JSW, the former will supply technology and components to the latter, thereby enabling it to build its own EV. The vehicle could be out in 2027. According to the report, JSW will pay Chery a one-time technology transfer (ToT) fee and recurring yearly royalties for the same. The deal will have no equity arrangement involved, and this will make it comply with the Indian governmental policies of curbing Chinese investments in strategic sectors.
After the geo-political climate between the two nations worsened, India had imposed strict restrictions on big-ticket Chinese investments being made here. It would thus be historic if this deal actually goes through and bears fruit.
Both Parties Dispute The Report!
Both Chery and JSW have reportedly disputed the Bloomberg report, saying that the Chinese company will supply just components of EV parts, and that JSW will use them to build EVs under own brand in India. This negates claims of Transfer of Technology (ToT).
JSW further backed this, saying that the powertrain technology will be developed in-house with the help of companies like KPIT Technologies Ltd. and LTIMindtree Ltd.
These claims make this deal almost a supply chain agreement. Many Indian companies rely on Chinese suppliers for key EV parts like rare earth magnets and lithium-ion battery packs.
Such a move will also comply with the strict Chinese laws around overseas transfer of EV tech. China is extremely cautious when it comes to EV tech (because they make the best electric vehicles out there) and scrutinises heavily any move to transfer EV technology or semi-conductor tech overseas. It has even asked its EV brands to stop making direct investments in countries like India.
In India, the EV landscape is still nascent. However, companies like Exide Industries, Amara Raja and Tata AutoComp Systems already have licensing agreements and ongoing partnerships with major Chinese cell suppliers.
JSW-Chery Deal: The Deeper Money Game!
Chery has its presence in more than 100 countries worldwide. It has had immense success in Russia recently and has emerged as a top-selling brand there. But the geo-political bond between the two countries is quite complex.
Chery is reportedly eyeing a Hong Kong IPO listing. Its success in Russia have reportedly made things difficult for Chery. It even did a scale back and ceased sales. This obviously means a sizeable loss of money. The company could use the recurring royalties from JSW to reclaim a portion of its lost revenue.
Another interesting trivia around Chery is that it already has an ongoing 50:50 joint venture with Tata-owned Jaguar Land Rover in China! It was established to produce and sell Jaguar and Land Rover models in the Chinese market. In a more recent development, JLR has even started to develop electric SUVs based on Chery's advanced EV architecture!
What Cars Could Come To India?
It is too early to comment authoritatively on this. Here are our best speculations. Chery has a bunch of interesting sub-brands under it- iCar, Exeed and Jetour. Considering India's affinity for SUVs, it is safe to expect JSW to launch own versions of some of the SUVs from these brands. JSW could be looking to localise production and sell rebranded versions of models from the iCar range, likely the iCar 03 and the V23.
The iCar sub-brand focuses on producing electric SUVs. The iCar 03 is a compact crossover SUV, aimed at younger buyers. In the Chinese market, it is available with both single-motor and dual-motor setups. The dual motor version's power output stands at 274hp while the single-motor version produces 180 hp. Three LFP battery packs are offered- 50.63 kWh, 65.69 kWh, and 69.77 kWh- all sourced from CATL. The largest unit has a claimed CLTC range of 501 km per charge.
If launched in India, it will likely fall into the BE6's segment. The iCar03 has a 'recognizable' styling and an impressive road presence. When viewed from the sides, it has an uncanny resemblance to the Defender's design! The kit levels on this EV, again, are impressive.
The V23, on the other hand, looks more butch and distinctive. It features a clamshell bonnet, round headlights, hidden door handles, side steps, flared wheel arches, 19-inch AT tyres, and a side-opening tailgate. Yes there is a strong visual resemblance to the Thar (or the ROXX to some extent) sold in the Indian market.
In China, it comes with both single-motor and dual-motor setups. The first has 134 hp on tap while the dual motor AWD version is much more powerful (likely produces over 200hp). Two CATL-sourced battery packs are offered in China- 50.6 kWh and 69.8 kWh. It is too early to comment on the possible specifications of the India-bound product.
What we do know is that the new EV brand will be wholly owned by JSW. It could even be looking for a licensed manufacturing arrangement, we don't know for now!