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35% Stake in MG Motor India to be held by JSW Group

In a strategic joint venture, SAIC Motor of China and the JSW Group, led by Sajjan Jindal, will each own a 35% share in MG Motor India.

The Shanghai-based Chinese state-owned automaker SAIC Motor owns MG Motor UK Limited (MG Motor), an automotive company with its headquarters located in London. The Indian government has been scrutinising Chinese investments more, and in May SAIC Motor announced that it intended to sell its ownership of MG Motor India so that local companies could acquire a majority share.

In a statement released on Thursday, the companies stated that the agreement between JSW and SAIC was signed “with the objective of accelerating the growth and transformation of MG Motor in India.” Parth Jindal of JSW Group and Wang Xiaoqiu, President of SAIC, signed the Shareholder Agreement and Share Purchase & Share Subscription agreement at the MG Office in London. SAIC Motor and JSW Group aim to establish strategic synergies through the pooling of their resources in the automotive and new technology sectors.

The companies stated that the joint venture will also carry out a number of new projects, such as expanding production capacity, strengthening local sourcing, enhancing charging infrastructure, and introducing a wider range of vehicles with an emphasis on green mobility.

“The automobile business is a global industry, and like in any other similar industry, access and collaboration are crucial for its healthy growth,” stated SAIC Motor President Wang Xiaoqiu. SAIC has consistently upheld the principle of “win-win cooperation” while enhancing our core competencies and growing both our production and sales volumes.

Both partners will collaborate closely to bring in the best innovation to the expanding Indian automotive market. This includes developing greener and smarter mobility products and services for our customers, taking advantage of market opportunities, consistently growing our products’ market share and brand influence, and achieving greater success for MG in India.”

“Our strategic collaboration with SAIC Motor aims to grow & transform the MG Motor operations in India with a focus on green mobility solutions,” says Parth Jindal of JSW Group. The joint venture opens the door for the introduction of a cutting-edge suite of futuristic automobile products enabled by technology, including the next generation of intelligently connected ICE and NEV vehicles. Through economies of scale, the JV’s emphasis on larger localization initiatives will produce financially advantageous synergies while offering Indian consumers the best possible customer service. The development of the EV ecosystem and assuming a leadership role in it will be among the primary goals of this joint venture. We are grateful that SAIC and MG Motor have selected JSW as their preferred partner, and we look forward to working with them to create one of the biggest automakers in India.”

Read more: https://cioworldindia.com/

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