JSW Group’s auto debut gains traction as India-China business ties thaw

Subscribe to enjoy similar stories.The improvement in business ties between China and India has streamlined partnerships between companies in the two countries, providing a significant boost to JSW Group's automotive venture, according to Parth Jindal, director at JSW MG Motor India. JSW Group plans its debut car launch towards the end of the calendar year.The Indian government’s easing of investment rules for Chinese firms and the resumption of direct flights between the two countries have made it easier to collaborate with the group’s Chinese partners, Jindal told Mint.“While the relaxation of Press Note 3 has not directly benefited the auto sector, it has improved overall sentiment which, along with the resumption of flights, has made engagement with our partners more seamless,” he said.“India’s relationship with China has been improving steadily, and the relaxation of Press Note 3 has helped ease technology transfer processes between the two countries.

Consequently, the company has not encountered any supply chain disruptions related to China, with operations and sourcing continuing without interruption,” added Jindal, who is son of group chairman Sajjan JindalPress Note 3 is a 2020 regulation that requires companies from countries sharing a land border with India—primarily China—to obtain prior government approval before investing in Indian businesses.Last month, the Indian government relaxed restrictions in the note concerning foreign investments from China in select sectors including electronics, capital goods and solar cells. Chinese investments in these sectors would be approved within two months if the majority shareholding is with an Indian company, the government said.