Shanghai (ZXZC)- SAIC Motor, a prominent Chinese automobile giant, and JSW Group of India joined forces by signing a strategic cooperation agreement in London, aiming to capitalize on the rapidly growing Indian automotive market. This collaboration positions JSW Group as a strategic investor, injecting vital support into MG Motor India's quest to expand its market share in India.

Photo credit: SAIC Motor

According to the agreement, upon the completion of the capital increase, JSW Group will acquire a 35% stake in MG Motor India. However, the realization of this collaboration is contingent upon government approval.

SAIC Motor emphasizes a synergistic approach, leveraging the duo’s respective strengths in automobile, steel, and energy sectors to establish a mutually beneficial cooperation model, ensuring sustainable development for MG Motor India.

SAIC Motor, a Chinese automotive industry leader with overseas sales exceeding a million vehicles annually, boasts a global presence in over 100 countries and regions. JSW Group, on the other hand, is a premier integrated steel manufacturer in India, with core operations spanning steel, energy, infrastructure, cement, venture capital, and sports, reaching more than 140 countries globally.

During the signing ceremony, Parth Jindal, the Strategic Projects Head at JSW Group, highlighted the strategic cooperation's focus on green mobility solutions, involving the launch of a new generation of intelligent connected electric vehicles and conventional oil-fueled vehicles, so as to propel MG Motor India's transformational journey. He added the joint venture’s primary mission is to construct an electric vehicle ecosystem, aiming to take a leadership position in this burgeoning field.

Photo credit: SAIC Motor

In 2017, SAIC Motor invested 3.275 billion yuan to establish MG Motor India as its wholly-owned subsidiary in India, including a complete vehicle manufacturing base and a supporting supplier park. Since the launch of its first product, MG Hector, in 2019, MG Motor India has witnessed a steady annual increase in sales. In 2022, the company sold 48,000 vehicles, a 19.1% year-on-year (YoY) growth. From January to October of 2023, MG Motor India achieved a remarkable 52,000 vehicle sales, marking a substantial 29.7% YoY jump and securing the eighth position in the Indian automotive market and second in the new energy vehicle market, according to SAIC Motor.