JSW signs deal with SAIC to run MG Motor operations in India

The Sajjan Jindal-promoted JSW Group and China’s largest carmaker, SAIC Motor, have announced a joint venture to expand the operations of the latter’s MG Motor in the country.

JSW Group will own a 35% stake in the joint venture, the companies announced in a press release.

SAIC will continue supporting the venture with advanced technology and products to deliver mobility solutions, the release added.

The deal comes after nearly six months of hectic negotiations.

JSW Group’s Parth Jindal said the conglomerate aims to grow and transform MG Motor’s operations in India with a focus on green mobility solutions.

“The joint venture paves the way for bringing world-class technology enabled futuristic suite of automobile products including the new generation of intelligent connected new energy vehicles and internal combustion engine vehicles,” Jindal said, adding that pursuing the development of the EV ecosystem would be a key focus area of the venture

JSW plans to tap its presence across business-to-business (B2B) and business-to-consumer (B2C) sectors to boost local sourcing and set up a robust supply chain, the release said.

“In the growing Indian automotive market, both partners shall work closely to bring in the best of innovation, in creating greener and smarter mobility products and services for our consumers, seizing market opportunities, continuously expanding the brand influence and market share of our products, and achieving greater success for MG in India,” Wang Xiaoqiu, president of SAIC Motor, said in the release.

The deal, which will enable the manufacturer of Hector and Aster sport utility vehicles (SUVs) to grow local operations and allow JSW to enter the fast-growing electric vehicle market in India, was signed in London.

MG Motor India posted a 17% year-on-year jump in retail sales at 5,108 units in October. Sales of EVs contribute about 25% of the total sales of the company, MG Motor had said.

With Chinese investments coming under tighter scrutiny in India, SAIC Motor said in May that it sought to drop its ownership of MG Motor India and allow domestic entities to take a majority stake.

MG made its entry into the Indian market in 2019, intending to invest around $650 million. However, following a 2020 military confrontation between India and China along their contested Himalayan border, New Delhi has been aiming to curb investments originating from Beijing.

SAIC is the owner of the British-origin MG brand.