JSW signs deal for 35 percent in MG Motor India, marks second foray into EVs
India's JSW Group will acquire 35 percent stake in motor company MG Motor India, the two companies announced on Thursday.
The agreement for the transaction was signed in London between JSW Group and MG Motor India's parent, Chinese EV company SAIC. According to the deal – whose financial terms were not disclosed – SAIC will continue to support the joint venture with advanced technology and products to deliver mobility solutions to the Indian consumer.
JSW Group and SAIC said they aimed to create strategic synergies by bringing together resources in the field of automobiles and new technology. One of the key focus areas of the joint venture will be to pursue development of an EV ecosystem and to take a leadership position in this space.
The joint venture also plans to undertake multiple new initiatives such as increasing local sourcing, improving charging infrastructure, expanding production capacity and introducing a broader range of vehicles with an e-mobility focus.
Wang Xiaoqiu, President, SAIC, who signed the deal for MG Motor, said on the deal: "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, who signed the agreement for JSW Group, said: "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 world-class technology-enabled futuristics suite of automobile products including the new generation of intelligent connected new energy vehicles (NEVs) and internal combustion engine (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."
MG Motor, which entered India in 2019, has plans to invest ₹5,000 crore in India. Among its investments are a second manufacturing facility in Gujarat, which will double installed capacity to 300,000 units per annum from the current 120,000.
This is JSW Group's second attempt to foray into the EV business. The group first forayed into the sector in 2016, when it targeted to launch vehicles by 2020 while also using its JSW Energy venture to foray into energy storage and EV charging infrastructure. JSW had even committed ₹3,500-4,000 crore for three years to the EV foray.