Sajjan Jindal-led JSW Group has entered into a joint venture with Chinese automotive major SAIC Motor to pick up 35 percent stake in MG Motor India.
The partnership aims to create strategic synergies by bringing together resources in the field of automobiles and new technology. The JV will also undertake multiple new initiatives including augmenting local sourcing, improving charging infrastructure, expanding production capacity, and introducing a broader range of vehicles with a focus on green mobility. The Chinese auto major will continue supporting the JV with advanced technology and products to deliver mobility solutions in the Indian market.
It maybe recollected that Chinese-owned British-marquee brand MG Motor entered the Indian market in 2017 by acquiring General Motors India Halol plant in Gujarat. It was in 2019 that the company launched its maiden product the Hector SUV, pipped India’s first internet car. In 2023, the company has sold 45,567 vehicles in India. This translates to a total of 159,804 units sold across its product portfolio– Hector SUV, Astor SUV, Gloster SUV, ZS EV and the Comet EV – in the Indian market since 2019.
The latest announcement provides the much-needed adrenaline shot for the carmaker as it has been struggling to raise funds since the Indian government started scrutinising Chinese investments in the country post the border tension.
Earlier this year, MG Motor India outlined its five-year plan that aimed to dilute its majority stake to a local partner to be able to counter the challenge of raising funds from its parent company.
Wang Xiaoqiu, President, SAIC Motor said, “The automobile business is a global industry, and like in any other similar industry, access and collaboration are crucial for its healthy growth. SAIC has always adhered to the ‘win-win cooperation’ approach while steadily improving our core capabilities and expanding our scale of production and sales. 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.”
JSW Group’s Parth Jindal stated, “The joint venture paves the way for bringing world-class technology-enabled futuristics suite of automobile products including the new generation of intelligent connected NEVs and ICE vehicles. The JV’s focus on broader localisation initiatives will yield financially accretive synergies through economies of scale while providing the highest level of customer service to the Indian consumer. One of the key focus areas of this joint venture will be to pursue the development of the EV ecosystem and to take a leadership position in this space.”
