SIAC, the parent company of MG Motor, has announced a strategic joint venture (JV) with JSW Group to expand its Indian operations. This deal took almost six months of negotiations. The shareholder agreement, share purchase and subscription agreement between two companies took place in MG Motor’s office in London.
- This JV will enable MG Motor India to sustain its domestic operation as it was facing challenges in raising funds amid heightened tensions between India and China over border issues.
- According to the agreement, the JSW Group will hold 35 per cent of the stacks in the Indian JV operations, whereas the SAIC will continue supporting JV with advanced technologies and products to deliver mobility solutions.
- The strategic partnership aims to embark on various initiatives for the Indian market, such as boosting local sourcing, growing EV charging infrastructure, expanding production capacity, and introducing a new range of vehicles with an emphasis on green mobility.
- The JV is meant to optimise SAIC’s automotive expertise and JSW Group’s presence in both B2B and B2C sectors to establish a strong supply chain.
Commenting on this partnership, Wang Xiaoqiu, President of SAIC Motor, said “SAIC has always adhered to the ‘win-win cooperation’ approach while steadily improving our core capabilities and expanding our scale of production and sales. 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.”
Meanwhile, Parth Jindal of the JSW Group also said, “One of the key focus areas of this joint venture will be to pursue the development of the EV ecosystem and to take a leadership position in this space. 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.”