Indian Mega conglomerate JSW has bought a 35% stake in SAIC owned MG Motor India, the companies have announced.
SAIC, which is one of the many Government-Linked Companies (GLCs) car manufacturers coming out of China, is thought to want to reduce their stake in the Indian operation to free up money for their EV investments elsewhere.
Currently, there is no love-lost between Chinese companies and the Indian government since a clash in the Himalayas between the two nations’ armies, the Indian Government has actively sought to limit investments from China.
SAIC may have been feeling the pressure as back in May, the company announced that they were thinking of reducing or even dropping their ownership of MG in India and allow domestic entities to take a majority holding.
The agreement signed between JSW and SAIC has been done with the objective of accelerating the growth and transformation of MG India according to a joint statement from the companies.
The new partnership will also be able to develop other products along with improving charging infrastructure and maximising local sourcing.
MG has only been in India since 2019 when they launched with a plan to invest USD650 million into the market.
Life has not been easy for MG in India, they are yet to make a profit in the market but to add insult to injury, they have just been called in by the government to explain why they made a loss in 2019-2020, MG’s first year of production.
