The goal of JSW Group's pursuit of a share acquisition in MG Motor India is to provide an electric vehicle that is especially suited for the Indian market. A fully owned subsidiary of Shanghai-based SAIC Motor is MG Motor India. This agreement will probably be officially announced by Diwali.
More crucially, the action emphasizes the transition toward sustainable and environmentally friendly transportation options by highlighting the growing interest in and investments in the Indian electric vehicle market.
Electric vehicle (EV) localization in India is a top priority for the $23 billion industrial powerhouse headed by Sajjan Jindal. By January 2024, the new corporate partnership hopes to introduce EVs. This is in line with the general movement to encourage domestic manufacturing and the use of EVs, contributing to sustainability and reducing carbon emissions.
A Memorandum of Understanding (MoU) between JSW Group and MG Motor India to purchase about 35 percent of the company is most likely in place. This acquisition is a key component of JSW's plan to dominate the Indian EV market, emphasizing aggressive localization efforts.
The planned contract specifies that in the preliminary stage, a private corporation connected to Sajjan Jindal will own 32–35 percent of
Losses incurred by MG Motor India will be mitigated by equity capital held by SAIC. MG Motor India wants to begin its initial public offering (IPO) via an offer for sale (OFS) after these losses have been made up, at which point SAIC will sell its stake.
Notably, JSW Steel and JSW Energy would not be involved in the business.
In the past, there have been rumors that SAIC sought to reduce its investment in MG Motor India so that local businesses might acquire the majority of the company. It has accrued losses of roughly Rs 1,720 crore since its 2019 India launch.
