With an aim to launch an electric car specifically tailored for the Indian market, JSW Group is actively pursuing a stake acquisition in MG Motor India. MG Motor India is a wholly-owned subsidiary of the Shanghai-based SAIC Motor. An official announcement regarding this deal is likely to be made by Diwali, quoting sources familiar with the matter CNBC-TV18 said. According to the report, the move highlights the increasing interest and investments in the Indian electric vehicle sector, emphasising the shift towards sustainable and eco-friendly transportation solutions.
The $23-billion industrial powerhouse led by Sajjan Jindal has shown strong interest in advancing the localisation of electric vehicles (EVs) within India, according to the sources. The aim is to unveil EVs via the new corporate alliance by January 2024. This aligns with the broader trend of promoting local production and adoption of EVs, contributing to sustainability and reducing carbon emissions.
MG Motor in May this year had announced it plans to offer majority stakes to Indian local partners over the next 2-4 years as part of a five-year business road map in the country. Additionally, the automaker has lined up Rs 5,000 crore to expand operations in the country by 2028. The company’s plans to bring in more capital to the country from its Chinese parent have not been successful so far, the report added. MG Motor is a British brand that is currently owned by China’s largest automaker SAIC Motor Corp.
JSW Group is likely to have signed a Memorandum of Understanding (MoU) to buy about 35 per cent stake in MG Motor India. This acquisition is a crucial aspect of JSW’s strategy to gain a strong foothold in the EV sector in India, emphasising robust localisation efforts, according to the CNBC-TV18 report.
The proposed deal, set to unfold in multiple stages, defines that in the early phase, a private entity linked with Sajjan Jindal will possess 32-35 per cent of MG Motor India. SAIC will retain a majority stake of 51 per cent. An Indian financial institution is likely to own around 8 per cent equity, and approximately 6-7 per cent will be acquired collectively by Indian dealers of MG and local employees, according to several news reports.
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