SAIC to Reduce Stake in JSW MG Motor India JV
Automobiles
- 7 month, 26 days ago
Chinese automotive giant SAIC Motor plans to reduce its 49 per cent stake in JSW MG Motor India joint venture and suspend fresh investment, claims a new report by Reuters, citing multiple sources. While SAIC will cut down its ownership levels in the MG Motor India joint venture with JSW, it is expected to continue providing technology and products to the venture. JSW Group is in talks to purchase a large share of SAIC's holding with the goal of becoming the majority shareholder, though valuation terms remain unsettled.India introduced new FDI restrictions in 2020 for investors from neighbouring countries following border tensions with China. These measures have limited SAIC's ability to inject further capital into MG Motor India and raised questions over whether returns on past investment can be repatriated smoothly under current rules.SAIC entered India in 2019 through the MG brand, investing more than US$ 650 million and acquiring General Motors' former Gujarat plant. The facility was retooled for an annual capacity of about 120,000 vehicles. Incentive requests linked to electric vehicle policy were later rejected, narrowing expansion options.In 2023, JSW acquired a 35 percent stake in MG Motor India from SAIC for around US$ 300 million, valuing the joint venture at approximately US$ 1.2 billion. JSW has since submitted a fresh proposal for a US$ 240 million electric vehicle investment, which is still awaiting government clearance.SAIC India Investment Timeline
