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JSW and SAIC Motor announce partnership; Indian conglomerate to get 35% stake in MG Motor India

The partnership between JSW and SAIC Motor gives MG Motor India a much needed cash infusion. The value of the stake remains undisclosed as of now.

MG Comet EV

MG Motor India’s parent, SAIC Motor and JSW Group have announced a partnership that will see the JSW Group take a 35% stake in the resultant joint venture’s India operations. Essentially, MG Motor India will receive a cash infusion to expand both its product lines as well as production capabilities. The cash infusion in question, however, remains undisclosed. The development comes at a crucial time for MG Motor India which has been hamstrung by a shortage of funds for its expansion targets.

It has been reported for several months that MG Motor India was in advanced talks with several Indian conglomerates for a possible stake sale. This was necessitated by its inability to raise funds from its parent company, SAIC, a Chinese entity. The Chinese auto major, among the largest carmakers in the world by total revenue, couldn’t get the requisite clearances from the Indian government.

The investment could potentially help MG Motor India enable better localisation for its products, improve charging infrastructure for its EVs while increasing product range diversity and overall sales volume. There is a second production facility that is reportedly in the works to help increase production capacity. It has to be noted that SAIC will continue to supply the technology, know-how and the products themselves as part of the partnership.

Wang Xiaoqiu, President of SAIC Motor, emphasized the importance of global collaboration in the automotive industry, stating, “SAIC has always adhered to the ‘win-win cooperation’ approach, steadily improving core capabilities, expanding production and sales scale. In the growing Indian automotive market, both partners will collaborate closely to bring innovation, create greener and smarter mobility products, seize market opportunities, expand brand influence, and increase market share for MG in India.”

Parth Jindal of JSW Group highlighted the strategic collaboration’s goal to transform MG Motor operations in India, focusing on green mobility solutions. He expressed enthusiasm for building one of India’s largest automobile companies, emphasizing the joint venture’s commitment to the development of the EV ecosystem and achieving a leadership position in the space.

We expect to see new EVs from the brand’s global portfolio soon making their way to India post this announcement. The current portfolio of the brand consists of the Comet EV, the Hector and the Hector Plus, the MG ZS EV, the Astor and the Gloster.

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