Sajjan Jindal-led JSW Group is believed to be in talks with SAIC-backed MG Motor India to pick up stake in the company. The group is also exploring possibilities to buy stake in another Chinese company, BYD’s India arm.
JSW has revived its plans to foray into the electric vehicle (EV) space after a gap of three years. Discussions are going on with both BYD and MG Motor, according to news agency PTI.
While MG Motor has non-EV products too in its portfolio, BYD has a portfolio comprising only EVs. Both companies, however, have been facing a common issue of fund raising as both have struggled to raise funds for expansion and new product introduction.
Reports stated that MG could be looking at off-loading 15-20% stake to JSW for raising $300-500 million, giving it a valuation of $2-2.5 billion. MG Motor India has been looking at raising funds through a variety of areas but has not made much progress so far.
The deal, if it fructifies, may lead to a fund infusion of over Rs 2,000-3,000 crore in the company. The talks are still at a preliminary stage, sources familiar with the developments said. “The funds were supposed to be sealed by Diwali last year but things were not moving at the desired pace for MG,” said an industry source.
“As a company policy at MG Motor, we do not comment on speculation,” said a company spokesperson.
Last week, MG Motor unveiled its upcoming city-centric, mini electric car Comet which will go on sale shortly. Its price tag will be announced on April 26.
With robust demand, BYD broke into the top five passenger EV makers in India recently. The company presently has two models – e6 and Atto 3 – and will launch a premium offering, Seal, later in the year. Unlike MG Motor, BYD makes its own battery cells in China giving it a supply chain edge over its rivals.
When contacted by PTI, a JSW Group spokesperson declined to comment.
