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JSW Group to Increase Stake in MG Motor India As SAIC Pivots - Localisation & EVs A Priority
Indian conglomerate JSW Group is set to increase its stake in JSW MG Motor India, aiming for a majority share in its partnership with China's SAIC Motor.
With the Chinese marque shifting its priorities towards its home market and Europe, thanks to India's fervent anti-China policy, JSW is looking to step up and increase its ownership in the joint venture.
JSW Group currently holds 35% of the Indian joint venture, while SAIC retains 49%. Indian financial institutions hold 8%, MG Motor India dealers have 3%, and employees possess the final 5%. Despite SAIC's reduced share, it continues to provide technology and brand support.
Speaking to ET Auto, Parth Jindal, director of JSW MG Motor India stated that SAIC Motor will not invest further capital in India. Instead, JSW Group plans to increase its investment using internal funds.
JSW Group's Electric Mobility Ambitions
The JSW conglomerate has signed two licensing agreements with Chinese automakers for electric passenger and commercial vehicles. Parth Jindal, director of JSW MG, confirmed these agreements to ET Auto but did not disclose the names of the Chinese companies involved. However, he confirmed that these agreements are purely for technology licensing.
Jindal stated that there is no equity involvement in these partnerships. Instead, they involve upfront fees and per-unit royalties, with a commitment to localise production in India from the outset. This approach aims to reduce reliance on imports amid ongoing geopolitical tensions between India and China.
Expansion Plans for Electric Vehicles
JSW is actively expanding its electric vehicle (EV) presence by opening exclusive showrooms like MG Select for premium offerings. Over the next year, 13 more such outlets are planned.
JSW Group also intends to launch its own EVs soon, with commercial vehicles expected by early 2026 and passenger cars by mid-2027. The commercial vehicle range will feature a new brand name, while passenger EVs will carry the JSW brand. A dedicated manufacturing facility is being developed for these ventures.
JSW's move towards localisation comes as China restricts exports of rare earth magnets crucial for industries like automobiles. "The technology for affordable new energy vehicles resides in China."
However, Jindal then went on to emphasise that JSW Group's priority was local manufacturing as they look to reduce their dependency on imports while leveraging the technological expertise of the Chinese.
Jindal stated that the Windsor EV initially launched with less than 30% localisation but aims to increase that to 72% by year-end and close to 90% eventually.
DriveSpark Thinks!
JSW's commitment to becoming a majority stakeholder in its JSW MG Motor India partnership with China's SAIC Motor doesn't come as a surprise. With its Chinese partner unwilling to invest due to current geo-political issues between the two largest nations in the world (by population) but still continuing to provide technology and brand support, JSW becoming the majority stakeholder will allow it to keep the marque under its control which should also help with its ambitious plans for the Indian automotive market.
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