SAIC, JSW JV to Boost MG Motor India

New Delhi, Nov 30 (PTI) China's largest automaker SAIC Motor on Thursday inked a joint venture agreement with the JSW Group which will help provide much-needed resources and growth capital to MG Motor in India.

As per the shareholder agreement and share purchase and share subscription agreement, JSW Group will hold 35 per cent of the Indian JV operations.

SAIC will continue supporting the joint venture with advanced technology and products to deliver extraordinary mobility solutions with an unwavering focus on the Indian consumer.

The agreement was signed by the President of SAIC Wang Xiaoqiu and JSW Group's Parth Jindal at MG UK Headquarters in London.

MG Motor is a British brand that is currently owned by SAIC Motor.

SAIC Motor and JSW Group will create strategic synergies by bringing together resources in the field of automobiles and new technology, SAIC and JSW group said in a joint statement.

The joint venture will also undertake multiple new initiatives including augmenting local sourcing, improving charging infrastructure, expansion of production capacity, and introducing a broader range of vehicles with a focus on green mobility, it added.

"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," SAIC Motor President Wang Xiaoqiu stated.

JSW Group's Parth Jindal stated: "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 NEVs and ICE vehicles, he added.

"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," Jindal said.

One of the key focus areas of the joint venture will be to pursue the development of the EV ecosystem and to take a leadership position in this space, he stated.

"We would like to thank SAIC and MG Motor for choosing JSW as their partners of choice and look forward to building one of India's largest automobile companies together," Jindal said.

The companies said the JV will also leverage the large presence of JSW Group across B2B and B2C sectors of the Indian economy to augment local sourcing and establish a robust supply chain.

MG Motor India had been looking to raise capital to fund its next phase of growth for a long time.

The company's plans to bring in more capital to the country from its Chinese parent were not successful in the past.

Since its inception in 2019, MG Motor India has invested Rs 7,000 crore and sold close to 200,000 vehicles in the country.
SAIC Motor, a global Fortune 500 company, has a presence in over 100 countries.

The USD 23 billion JSW Group has a presence in various sectors including steel, energy, infrastructure, cement, paints, e-commerce, venture capital and sports.