JSW Ventures to acquire 35% stake in MG Motor India
JSW Ventures, a subsidiary of the Indian conglomerate JSW Group, is planning to acquire a 35% share in MG Motor India. The deal is valued at ₹3,580 crore ($430 million). This step comes as part of MG Motor India's growth strategy, which is known as MG Motor India 2.0. It aims to strengthen the carmaker's presence in the Indian market by welcoming local investors.
MG Motor India 2.0: A strategy for growth
MG Motor India 2.0 is a strategic initiative by the MG brand, owned by China's SAIC, to strengthen its foothold in India. The strategy is focused on new energy vehicles (NEVs) and internal combustion engine (ICE) cars. With JSW Ventures' planned investment, the aim is to capture 33% of India's electric vehicle market by 2030.
Other local investors to join MG Motor India
Apart from JSW Ventures, other local investors are also set to join MG Motor India. The IndoEdge India Fund will buy an 8% stake, while a dealer trust as well as an employee stock ownership plan, will acquire 3% and 5% stakes, respectively. This move is part of SAIC's strategy to enhance its business environment in the world's third-largest auto market.
Ambitious plans for electric vehicles
The joint venture between JSW Group and SAIC, named JSW MG Motor India, has unveiled ambitious plans for electric vehicles (EVs). To support these plans, an investment of ₹5,000 crore has been announced to increase production capacity, and debut a new car every three to six months starting in September.
JSW MG Motor India's vision for the auto industry
JSW MG Motor India aims to manufacture vehicles for both domestic and international markets. The partnership aspires to emulate Maruti Suzuki's transformative impact on the Indian auto industry. To further this vision, JSW MG Motor India plans to establish a dedicated R&D center to improve its research, development, and technical capabilities. It will focus on developing contemporary, connected, as well as locally relevant mobility solutions.
