The Competition Commission of India (CCI) has approved JSW Group’s acquisition of up to 38% stake in MG Motor India. The acquiring entity is a newly established company, a wholly-owned subsidiary of JSW International Tradecorp Pte. Limited and affiliated with the JSW Group, as per CCI.
The Competition Commission of India (CCI) has granted approval for the proposed acquisition of up to a 38% stake in MG Motor India by the JSW Group, led by Sajjan Jindal. According to the CCI, the acquiring entity is a recently formed company wholly owned by JSW International Tradecorp Pte. Limited and belonging to the JSW Group. The target company, MG Motor India, is involved in the manufacturing and selling of passenger cars, including electric vehicles, under the brand ‘MG.’
Back in November 2023, it was reported that the JSW Group had entered into an agreement with China’s SAIC Motor to acquire a 35% stake in MG Motor India, the Indian subsidiary of SAIC Motor. The deal, aimed at joint collaboration in automobile operations in India, involved JSW Group acquiring the stake for an undisclosed amount. As part of the agreement, SAIC Motor would continue to support the joint venture with advanced technology and products for delivering mobility solutions to the Indian market.
This acquisition becomes significant in the context of heightened scrutiny by the Indian government on Chinese investments due to geopolitical tensions. The stake acquisition by JSW Group is expected to facilitate MG Motor India’s expansion of its operations in the domestic market. Additionally, it provides JSW Group with an entry into the rapidly evolving electric vehicle segment in India.
The shareholder agreement and share purchase and subscription agreement were signed between SAIC President Wang Xiaoqiu and JSW Group’s Parth Jindal at MG Motor’s office in London. Wang Xiaoqiu, President of SAIC Motor, emphasized the collaborative efforts to bring innovation and environmentally friendly mobility products to the Indian consumer, seizing market opportunities.
Parth Jindal expressed the strategic collaboration’s focus on transforming MG Motor operations in India with an emphasis on green mobility solutions. The joint venture aims to introduce intelligent connected new energy vehicles (NEVs) and internal combustion engine (ICE) vehicles, with a commitment to localizing production and providing top-notch customer service in India.
Both companies outlined their key focus on developing the electric vehicle ecosystem and achieving a leadership position in the green mobility space. The joint venture plans to undertake various initiatives, including enhancing local sourcing, improving charging infrastructure, expanding production capacity, and introducing a broader range of vehicles with an emphasis on green mobility.
In May 2023, MG Motor India announced plans to dilute a majority stake in the company to Indian entities, aiming to raise funds for expansion. As part of this growth strategy, MG Motor India intends to invest Rs 5,000 crore, with a focus on establishing a second manufacturing facility in Gujarat, doubling its installed capacity to 300,000 units from the current 120,000 units.
