JSW Group acquires 35% stake in MG Motor India from SAIC
Indian conglomerate JSW Group and SAIC have announced a “strategic joint venture", which will see the latter acquire a 35 per cent stake in MG Motor India. The move marks the JSW Group’s foray into the automotive sector and the joint venture will undertake multiple new initiatives including augmented local sourcing, improving charging infrastructure, production capacity expansion and introduction of a wider range of vehicles. China’s SAIC will continue to provide the necessary support with new products and technologies, the companies announced.
The announcement comes amidst MG Motor India’s expansion plans delayed amidst the ongoing Indo-China conflict, which has restricted fresh investments from Chinese players. The move allows MG Motor India to continue with its expansion strategy with a second plant said to be in the works. The value of the acquisition though remains undisclosed. The Shareholder Agreement and Share Purchase & Share Subscription agreement were signed by the President of SAIC Wang Xiaoqiu and JSW Group’s Parth Jindal at the MG Office in London.
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Speaking about the joint venture, 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."
Parth Jindal of the JSW Group, added, “Our strategic collaboration with SAIC Motor aims to grow and transform the MG Motor operations in India with a focus on green mobility solutions. The joint venture paves the way for bringing a world-class technology-enabled futuristic 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. We would like to thank SAIC and MG Motor for choosing JSW as their partners of choice and look forward to building one of India’s largest automobile companies together. The rich history of the MG brand is known to all and its success in India is there for all to see. It is truly an honour to be able to take this brand and company forward alongside a strong global partner in SAIC. We cannot wait to get going."
The joint venture also reiterates MG Motor’s commitment to its operations in the Indian market. The move will see the automaker work towards bringing more new electric vehicles to the market, while internal combustion cars will also be a part of the brand’s portfolio.
MG Motor commenced operations in India in 2019 with an initial investment of ₹7,000 crore and sold close to 200,000 vehicles so far in the country. The automaker’s product portfolio comprises the MG Comet EV, Astor, Hector, Hector Plus, ZS EV and Gloster. MG has also extensively worked towards setting up its charging infrastructure partnering with local players for the same.
The JSW Group, on the other hand, is one of the leading business houses in India with its presence in nearly every from steel, cement, paints, e-commerce, sports and more. The $23 billion group’s presence and experience will help facilitate faster growth for MG in India, particularly with the rollout of new offerings.