The Joint Venture between India’s JSW Group and MG Motor expects to sell one million electric vehicles in India by 2030, accounting for a third of the market, a JSW executive said.

The two companies said the joint venture plans to enter the luxury passenger car segment with the launch of a new sports car called Cyberstar EV.

Both companies will invest a total of Rs 200 crore, Rajiv Chhaba, managing director of MG Motor India, said at a media briefing. 50 billion (US$602 million) was invested in this joint venture.

Meanwhile, JSW Group Chairman Sajan Jindal said the joint venture will develop electric vehicles in India just as Maruti Suzuki revolutionized the automobile market with “highly efficient and lightweight vehicles” 40 years ago. He said he hopes to revolutionize the sector.

Last week, New Delhi cut import duties on certain electric vehicles for automakers that invest at least $500 million (about Rs 4,160 crore) and commit to starting domestic production within three years. The situation in India has changed.

Although the policy change is a big win for Tesla, analysts say its impact on the Indian company’s sales could be mostly limited to premium carmakers.

The share of electric vehicles in India’s total vehicle sales will be around 2% in 2023, and the government plans to increase this to 30% by 2030.

MG Motor, a subsidiary of China’s SAIC Motor, is launching two electric models in India: the small Comet EV and the ZS EV SUV.

The partnership with JSW will help MG Motor increase its annual production capacity from 100,000 to 300,000 units, the companies said in a statement, but did not give a target date.

SAIC Motor and JSW formed a joint venture in December last year in which the Indian group holds a 35% stake.

In January, India’s competition regulator approved JSW’s bid to buy a 38 percent stake in MG Motor India.

JSW companies include JSW Steel, India’s largest steel producer across multiple segments.