In India, MG is the seller of the Astor, Hector, Gloster, Comet EV, and ZS EV.
The well-known SUV manufacturer MG Motor India, along with the Chinese company SAIC Motor, and the Indian conglomerate JSW Group, announced a strategic joint venture (JV) on Thursday. As part of the JV, the former has purchased a 35% share in MG Motor India.
The action is being taken at a time when the Indian government is closely monitoring Chinese investments.
SAIC has earlier declared its desire to decrease its participation in its Indian subsidiary in order to allow Indian enterprises to acquire a controlling position, in response to this environment.
SAIC Motor is a global company with revenues close to USD 110 billion annually and operations in more than 100 nations. The USD 23 billion JSW Group, headed by Sajjan Jindal, operates in a number of industries, including venture capital, steel, energy, infrastructure, cement, paints, e-commerce, and sports.
In order to expedite MG Motor India’s transformation and expansion, the two firms have signed a shareholder agreement as well as a share purchase and subscription agreement, according to an official release.
MG Motor India launched its retail operations in 2019 and currently offers five models. The Hector SUV was released in 2019, the Gloster SUV and ZS EV in 2020, the Astor SUV in 2021, and the Comet EV in 2023. Its manufacturing plant, which has an established production capacity of 120,000 units annually, is located in Halol, Gujarat.
A number of new projects will be carried out under the JV, such as increasing local sourcing, enhancing the infrastructure for charging, increasing production capacity, and launching a wider selection of cars with an emphasis on green mobility. SAIC Motor will keep providing cutting-edge goods and technology to the joint venture.
SAIC has continuously improved our core skills, increased the volume of our production and sales, and supported the idea of “win-win cooperation.” Wang Xiaoqiu, President of SAIC Motor, stated, “Both partners will collaborate closely to bring the best innovation to the growing Indian automotive market. We will create greener and smarter mobility products and services for our consumers, seize market opportunities, and consistently increase our products’ brand influence and market share. Together, we will achieve greater success for MG in India.”
“Our strategic collaboration with SAIC Motor aims to grow and transform the MG Motor operations in India with a focus on green mobility solutions,” stated Parth Jindal of JSW Group. The JV opens the door for the introduction of an elite range of futuristic car products enabled by technology, including the next generation of intelligently connected ICE and NEV vehicles. The JV’s emphasis on more comprehensive localization efforts will result in financially advantageous synergies through economies of scale while offering Indian customers the best possible level of customer care.”
According to Jindal, one of the main goals of the JV will be to lead this field and drive the development of the EV ecosystem. He said, “We are grateful that SAIC and MG Motor have selected JSW as their partner of choice. We look forward to working with them to build one of India’s largest automobile companies.”