MG Motor India, backed by China’s SAIC Motor Corp, is poised for significant growth with strategic investments and plans to enhance its electric vehicle (EV) lineup, according to a Reuters report. The company recently announced its intention to introduce investors, including JSW Ventures Singapore, through an equity transfer and by increasing its share capital.
According to a statement by SAIC, JSW Ventures is set to acquire an aggregate 35% stake in MG Motor India for a substantial $429.4 million. This move aligns with MG Motor India’s goal to increase its market share in India and mitigate operational risks effectively.
In addition to JSW Ventures, other local Indian investors are also joining the fray. IndoEdge India Fund will purchase an 8% stake in MG Motor India for Rs 818 crore, while a dealer trust and an employee stock ownership plan will acquire 3% and 5% stakes, respectively, for Rs 307 crore and Rs 511 crore.
This development comes on the heels of SAIC Motor’s announcement last November about its joint venture with the JSW Group, where the latter secured a 35% stake in MG Motor India. SAIC Motor has expressed intentions to reduce its ownership in MG Motor India, allowing domestic entities to hold a majority stake.
The joint venture, named JSW MG Motor India, aims to revolutionize the EV ecosystem in India. With plans to introduce a new car every 3-6 months, the focus will be on new energy vehicles (NEVs). Sajjan Jindal, Chairman of JSW Group, highlighted the goal of launching one electric vehicle every 3-4 months, drawing parallels to the transformative impact Maruti had on the Indian automotive industry.
Looking ahead, MG Motor India targets capturing 33% of the electric vehicle market by the end of the decade. Parth Jindal, Managing Director of JSW Cement and son of Sajjan Jindal, emphasized the role of EVs in reducing India’s high account deficit on oil imports and steering the nation towards self-reliance. He expressed confidence that, with government support, India can replicate China’s success story in transitioning to electric mobility.
