JSW Group Secures 35% Stake in Joint Venture with SAIC Motor for Electric Vehicle Manufacturing in India
JSW Group has entered into a joint venture with SAIC Motor, the company responsible for marketing MG Motor cars in India, to establish a new entity focusing on the production of electric vehicles (EVs) in the country. The deal, signed in London by JSW Group’s Parth Jindal and SAIC Motor’s president Wang Xiaoqiu, grants JSW Group a 35% stake in the joint venture, with the remaining ownership yet to be determined.
The collaboration provides JSW Group with an entry into the electric vehicle segment, aligning with its longstanding interest in green mobility solutions. The partnership aims to launch a new EV in early 2024. For MG Motors India, this joint venture presents an opportunity for expansion in the Indian market, overcoming constraints linked to restrictions on investments from China.
Parth Jindal, from JSW Group, expressed the strategic collaboration’s focus on transforming MG Motor operations in India with an emphasis on green mobility solutions and broader localization initiatives. SAIC Motor will continue supporting the joint venture with technology and product contributions.
The joint venture’s initiatives include enhancing local sourcing, improving charging infrastructure, expanding production capacity, and introducing a broader range of vehicles with a green mobility focus. JSW Group is also in discussions to acquire Ford’s Chennai plant for assembling electric vehicles.
India’s electric vehicle market is projected to triple to $7.09 billion by 2025, with an expected increase in the number of EVs to 50 million by 2030. Analysts view the joint venture positively, anticipating growth in India’s EV space through new launches and increased EV penetration.
This collaboration is significant for MG Motors India, which has been seeking a buyer or partner due to challenges arising from its Chinese lineage. The joint venture serves as a template for Chinese companies operating in India and addresses concerns related to cross-border tensions and foreign investments in automotive firms.
MG Motors India, part of SAIC Motor Corp, faced challenges in the Indian market due to geopolitical tensions, and the joint venture provides a strategic move to navigate these issues and continue its presence in the evolving Indian EV landscape.
