Chinese automaker SAIC Motor is set to sell an additional 10 percent stake in JSW MG Motor India joint venture to its local partner, JSW Group, according to a Reuters report. The deal would increase JSW's holding from 35 percent to 45 percent, making it the largest shareholder in the company, while SAIC's stake would fall from 49 percent to 39 percent.
The report says discussions are at an advanced stage, and the transaction could be completed within the next month.
Stake sale to offer greater control for JSW
SAIC may reinvest proceeds into future product launches
The stake sale is expected to give JSW a larger role in the company's management and strategic direction. JSW Group acquired its initial 35 per cent stake in 2023, when MG Motor India was restructured into a joint venture with Indian investors. At the time, the company was valued at around USD 1.2 billion.
The report also suggests that SAIC plans to reinvest part of the proceeds from the stake sale into JSW MG Motor India. The funds are expected to support the launch of new products, while allowing SAIC to maintain its revised shareholding level.
Stake sale comes as JSW Group ramps up its automotive ambitions
The stake sale comes as JSW and MG prepare for an aggressive expansion in India. JSW MG Motor has already announced plans to invest up to USD 440 million (around Rs 3,700 crore) to more than double annual production capacity to 3 lakh units and launch a broader range of EVs and hybrid models.
Beyond the MG joint venture, the JSW Group is also building its own passenger vehicle business, JSW Motors. The company is expected to launch its first model, a plug-in hybrid SUV based on the Jetour T2, around the festive season, while EVs based on the Jaecoo J5 and iCar V23 platforms are also under development and have been spotted testing on Indian roads.
Saptarshi Mondal
Suraj Viswanathan
Uday Singh
Ajit Dalvi
