JSW Group to own 35% stake in JV with SAIC Motor

livemint.com:

NEW DELHI : JSW Group has entered into a joint venture with China’s SAIC Motor, which markets MG Motor cars in India, and will own a 35% stake in the new entity that will focus on manufacturing electric vehicles in the country. The rest of the ownership has not been decided yet, company executives said. JSW Group’s Parth Jindal and SAIC Motor’s president Wang Xiaoqiu signed agreements for the transaction at the MG Motor office in London, the companies said on Thursday.

The joint venture partnership will allow JSW Group to enter the electric vehicle segment, a long-pending desire of the group’s management, with the launch of a new EV expected early next year. For MG Motors India, the deal could help it expand in the country, which has been constrained owing to restrictions on investments from China. “Our strategic collaboration with SAIC Motor aims to grow and transform the MG Motor operations in India with a focus on green mobility solutions.

The JV’s focus on broader localisation initiatives will yield financially accretive synergies," JSW Group’s Parth Jindal said in a joint statement issued by the two companies. “One of the key focus areas of this joint venture will be to pursue the development of the EV ecosystem…" SAIC will continue supporting the joint venture with technology and products. Mint had first reported in September that JSW Group was set to announce a plan to work with MG Motors in about two months.