02 April 2024 – The Chinese auto giant SAIC Motor and JSW Group officially announced their joint venture (JV) agreement to establish a new face for passenger vehicle manufacturer MG Motor India, capping months of speculation. It is anticipated that the joint venture, JSW MG Motor India Pvt. Ltd., which currently has the bulk of its shares owned by Indian companies and people, would accelerate MG Motor’s expansion in India.
Although the transaction brings in new capital, it may be the ideal way for Sajjan Jindal’s JSW to expand into the consumer market and increase sales of its mining, steel, and paints divisions. SAIC Motor’s local subsidiary was called MG Motor India. JSW Group will now have a 35% share in JSW MG Motor India, with the remaining 8% owned by Indian financial institutions, 3% by the company’s dealers, and 5% by the workers.
According to Rajeev Chaba, CEO Emeritus of MG Motor India, the automaker received over 5,000 crore for selling its 51% stake to JSW and other Indian companies.
Conclusion
The automaker intends to use this money to expand its production capacity from 120,000 to 300,000 units annually and introduce new vehicles to the local market.
