Recently, Indian steel producer JSW Group issued an announcement,Announced the establishment of joint venture JSWMG Motor India with SAIC Motor. The announcement stated that the joint venture plans to launch a new product every three to six months, focusing on new energy vehicles, and will also enter the high-end passenger car market in the future.
The new joint venture was established with a joint investment of US$1.5 billion from both parties. JSW Group holds 35% of the shares. In addition, local financial institutions, car dealers and some employees also participate in the shareholding.This brings the actual total shareholding ratio of India to 51%, while SAIC holds 49%..
Sajjan Jindal, chairman of JSW Group, said that the group has been seeking opportunities to enter the Indian automobile market. The rise of new energy vehicles has allowed it to see entry opportunities, and MG's technical advantages make it a good partner. In terms of market competition strategy, Jindal believes that the joint venture may follow Maruti Suzuki's example and seek market share breakthroughs through the rapid launch of models.
It is understood that the joint venture mainly produces and sells MG brand electric vehicles in India.The goal is to increase its share of the Indian new energy vehicle market from 2% to 33% by 2030, and plans to sell 1 million electric passenger cars in 2030.
On November 30, 2023, SAIC and India's JSW Group signed a strategic cooperation agreement in London, England.
SAIC will introduce JSW Group as a strategic investor to further support MG India in expanding its market share through capital increase and share expansion. SAIC Group and JSW Group will actively coordinate their respective advantageous resources in the fields of automobiles, steel, energy and other fields to create a mutually beneficial and win-win cooperation model to ensure that MG India achieves sustainable development.