JSW Group in talks with SAIC of China to increase stake in JV

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JSW MG Motor India Director Parth Jindal outlines expansion plans | Photo Credit: By Special Arrangement

The Sajjan Jindal-led JSW Group is in talks with China’s SAIC Motor to increase its stake in their joint venture, JSW MG Motor India, as the group looks to expand its presence in the Indian automobile sector.

“We are talking to them, so it’s between shareholders right now. Again, I won’t comment on how much because it’s all under discussion at this stage,” JSW MG Motor India Director Parth Jindal told journalists in Mumbai on Wednesday.

According to reports, JSW Group is seeking to increase its stake in the joint venture by around 10%. JSW currently holds 35%, while SAIC Motor owns 49%. The remaining stake is held by Indian institutional investors, employees of JSW MG Motor India and the company’s dealers.

Indian entities, including JSW Group, acquired a majority stake in the erstwhile wholly China-owned MG Motor India two years ago.

Apart from JSW MG Motor India, the group is setting up a separate automobile company, JSW Motor Ltd, which will focus on manufacturing electric vehicles. JSW Group is also in discussions with Skoda Auto Volkswagen India for a potential acquisition of a majority stake.

“Nothing has happened yet. It’s still premature for me to say anything about that,” Jindal said when asked about the talks.

If the proposed transactions materialise, JSW Group would emerge as a significant player in India’s automotive industry, with investments across three entities and a portfolio spanning multiple brands.

JSW MG Motor India is investing around ₹3,500 crore following the change in ownership, with the investment programme expected to be completed by the end of calendar year 2027.

By then, the company expects both the Windsor and Hector Tomahawk models to achieve around 70% localisation, positioning the company as a leading player in new-energy vehicles in India, Jindal said.

A portion of the investment is also being used to expand manufacturing capacity at the company’s Halol plant in Gujarat.

The plant currently has an annual capacity of 110,000 vehicles. This is expected to rise to 160,000 units by March and further to 220,000 units by January 2028. The facility can eventually be expanded to produce up to 400,000 vehicles annually.

“On top of our investment, our vendors are investing close to Rs 2,500 crore as well. So, overall, there is about a Rs 6,000 crore investment that is being made due to JSW MGI’s requirement, partly by our vendors and partly by us,” Mr Jindal said.