HIGHLIGHTS:
- SAIC Motor and JSW Group have come into a strategic partnership.
- JSW Group will hold a 35% stake in the Indian JV operations.
- MG Motor India is all set to move towards business expansion.
SAIC Motor and JSW Group Collaboration
What does it mean for MG Motor India?
The Joint Venture is expected to bring both the group’s expertise in their own respective areas. Here, SAIC Motor is a Fortune 500 company with quite a good experience in the automotive sector. Then, JSW Group might bring the resources to the auto manufacturer helping the expansion of the business in a faster manner. The expansion here also includes new technology, increased production capacity, improved infrastructure for electric vehicles and more emphasis on a greener tomorrow.
At the MG Office in London, both groups have signed the Shareholder Agreement and Share Purchase & Subscription Agreement. Mr Wang Xiaoqui, President of SAIC and Mr Parth Jindal, representing the JSW Group, were also present during the agreement.
As per the sources, JSW will hold 35% of the Indian joint venture operations. Together, the partnership is being set up to stick to the Indian market with future plans. This also includes creating a smart and sustainable automotive ecosystem.
Comments on this new Joint Venture
Commenting on this new strategic partnership, Wang Xiaoqiu, President of SAIC Motor, “The automobile business is a global industry, and like in any other similar industry, access and collaboration are crucial for its healthy growth. SAIC has always adhered to the ‘win-win cooperation’ approach while steadily improving our core capabilities and expanding our scale of production and sales. In the growing Indian automotive market, both partners shall work closely to bring in the best of innovation, in creating greener and smarter mobility products and services for our consumers, seizing market opportunities, continuously expanding the brand influence and market share of our products, and achieving greater success for MG in India.”
Over the past few years, MG Motor India has been growing significantly at a growth rate of 25% year-on-year. That’s not the end, as since inception, the Indian arm of the automaker has invested Rs.7000 crore in the business and sold around 2,00,000 vehicles in India.
The current portfolio of MG Motor India includes some best sellers, and with this strategic partnership, we expect the brand to come up with some more exciting products in the near future.
While addressing the media, JSW Group’s Parth Jindal said, “Our strategic collaboration with SAIC Motor aims to grow & transform the MG Motor operations in India with a focus on green mobility solutions. The joint venture paves the way for bringing a world-class technology-enabled futuristic suite of automobile products, including the new generation of intelligent connected NEVs and ICE vehicles. The JV’s focus on broader localisation initiatives will yield financially accretive synergies through economies of scale while providing the highest level of customer service to the Indian consumer. One of the key focus areas of this joint venture will be to pursue the development of the EV ecosystem and to take a leadership position in this space. We would like to thank SAIC and MG Motor for choosing JSW as their partners of choice and look forward to building one of India’s largest automobile companies together. The rich history of the MG brand is known to all, and its success in India is there for all to see and it is truly an honour to be able to take this brand and company forward alongside a strong global partner in SAIC. We cannot wait to get going.”