JSW Group to Become Largest Stakeholder in JSW MG Motor India JV as SAIC Reduces Holdings: Report

JSW Group will buy an additional 10 percent stake in JSW MG Motor India from its joint venture partner, China’s SAIC Motor, as per a Reuters report. This move will reduce SAIC’s holding from 49 percent to 39 percent, and increase JSW’s ownership to 45 percent from its current 35 percent, also making it the largest shareholder. Financial details of the purported transaction are not yet known.

The joint venture was initially announced in 2024, when SAIC was compelled to reduce its ownership in its MG Motor India Ltd subsidiary to less than 50 percent due to government regulations concerning investments from China. At the time, JSW Cement Managing Director Parth Jindal had said “It is our aim to have 33 per cent of the market of the new energy vehicle segment by 2030”. The company had also stated at the time that it would focus on plug-in hybrids and new-energy vehicles. It also said it would launch a new model every 3-4 months starting in late 2024, before scaling that plan back.

Other investors’ stakes are not changing, as per the report. IndoEdge India Fund continues to hold 8 percent of the joint venture, while 3 percent and 5 percent are owned by a dealer trust and an employee stock ownership plan, respectively.

The JV operates one manufacturing plant at Halol, in Gujarat, and JSW has announced an upcoming greenfield project in Maharashtra for EV manufacturing. Premium models such as the Cyberster convertible, M9 MPV and upcoming IM6 SUV are imported from China.

Operating the JV has not stopped JSW Group from pursuing its own automotive ambitions. The company has been in talks with multiple other Chinese carmakers, and is likely to debut its first self-branded model later this year, pending regulatory approvals. Speculation and sightings of test units suggest a hybrid SUV based on Chery’s Jetour J2, or an electric SUV based on the iCar V23 could be its first model or models in India. Other candidates are rebadged versions of the Jaecoo J5 C-segment SUV, and Tiggo 7L three-row SUV, all licensed from Chery or its subsidiaries.

JSW also just announced collaboration with Uber to design and develop EVs tailored for ride-hailing conditions in India.