JSW Group To Buy 35% Stake In China's SAIC-Owned MG Motor India

The Sajjan Jindal-led JSW Group will buy 35% stake in MG Motor India, owned by Chinese automobile manufacturer SAIC Motor.

“The JSW Group will buy this 35% stake in MG Motor India,” an MG Motor spokesperson told BQ Prime.

SAIC Motor and JSW Group released a joint press release on Thursday announcing the strategic joint venture.

The agreement was signed by the President of SAIC Wang Xiaoqiu and JSW Group’s Parth Jindal at MG U.K. headquarters in London, with “the objective of accelerating the transformation and growth of MG Motor in India”.

The Shanghai-based state-owned SAIC Motor is the biggest auto manufacturer in terms of revenue in China and also markets vehicles under the British MG marque.

The JSW Group, which runs JSW Steel Ltd., has an annual revenue of $23 billion across companies and was earlier reported to be in talks with the auto company.

Both companies will create strategic synergies by bringing together resources in the field of automobiles and new technology, the press release said.

“The joint venture will also undertake multiple new initiatives including augmenting local sourcing, improving charging infrastructure, expansion of production capacity, and introducing a broader range of vehicles with a focus on green mobility,” it said.

In the growing Indian automotive market, both partners will work closely to bring in the best of innovation, in creating greener and smarter mobility products and expand market share of products, Xiaoqiu said in the release.

“The rich history of the MG brand is known to all and its success in India is there for all to see and it is truly an honour to be able to take this brand and company forward alongside a strong global partner in SAIC,” Jindal, the scion of JSW Group, said in the release. “We cannot wait to get going.”

The companies didn't reveal the amount JSW Group will have to invest in MG Motor India for the 35% stake.

The government had made its prior approval mandatory for foreign investments from countries that share the land border with India.

It was done to curb opportunistic takeovers of domestic firms following the Covid-19 pandemic, which was seen as directed primarily towards China after clashes on the Sino-Indian border.