JSW Group and MG Motors inked joint venture to target energy vehicle in India

JSW Group is set to acquire a 35% stake in the newly formed JSW MG Motor India. The remaining stake will be held by Indian financial institutions, domestic MG Motor dealers, and employees, in proportions of 8%, 3%, and 5% respectively. With this fresh stakeholding, JSW MG Motor India will receive a capital infusion of Rs 5,000 crore.

SIAC Motor, the Chinese car major, will hold a 49% stake in the new joint venture company. SIAC may dilute its stake through an initial public offering at a later stage, however, the company has not committed to this yet.

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JSW Group's Chairman, Sajjan Jindal, has announced that the company plans to invest fresh capital to increase the production capacity of MG Motor to 3 lakh vehicles per annum from 1 lakh. This move is expected to disrupt the electric vehicle market in India, as MG Motor plans to launch the latest high-tech models every 3-6 months. With the aim of deep localization, the pricing strategy of MG Motor is expected to be consumer-friendly.

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