
JSW Group to increase stake in JSW MG Motor India amid SAIC's exit from Indian Market
plans to raise its stake in
JSW MG Motor India
, its car manufacturing joint venture with
SAIC Motor
. The Chinese company has decided against committing further capital to India, instead prioritising investments at home and in Europe. Parth Jindal, director of JSW MG, told ET the group wants to come in as the single largest shareholder in the maker
Hector SUV
and
Windsor EV
.
Currently, JSW MG is a 51:49 joint venture, with JSW owning 35 per cent, Indian financial institutions 8 per cent,
MG Motor India
dealers 3 per cent, and JSW MG Motor India employees 5 per cent. The remaining 49 per cent is with SAIC, which will continue to extend technology and brand support, he added.
Alongside, the Sajjan Jindal-led group has finalised two separate licensing pacts—one each for electric passenger and commercial vehicles—with Chinese automakers, as it pushes ahead with its ambition of emerging as a full-spectrum
electric mobility
company.
Jindal didn't name the Chinese firms. 'SAIC has made it clear they are not committing additional capital to India right now. Their focus is China and Europe. We have put our hands up, saying we would be interested in investing… Their stake would get diluted,' he said, adding that the additional stake purchase would be funded through internal accruals.
On the size of JSW's stake in the automaker post the infusion and the timeframe, Jindal said, 'Those talks are still on, but we want to come in as a clear, single largest shareholder." Jindal was speaking on the sidelines of the inauguration of MG Select, JSW MG's first exclusive EV showroom for its premium offerings. The company is expanding its EV footprint as part of its localisation and brand development efforts. It plans to open 13 more Select outlets over the next year.
Simultaneously, JSW is proceeding with plans to launch its own EVs in the coming years. Its electric trucks and buses are slated to debut in early 2026, and electric passenger cars in the first half of 2027. The conglomerate has signed non-equity licensing deals for both ventures with Chinese automakers, involving upfront fees and per-unit royalties, while committing to full localisation in India.
'There is no equity arrangement. It's a pure licensing agreement. We will pay a licensing fee and royalty per vehicle but will localise production from the start,' said Jindal.
He said the commercial vehicle range will sport a new brand name, while passenger EVs will be sold under the JSW brand. A dedicated manufacturing facility for the former is under development.
JSW is forging licensing agreements with Chinese automakers amid longstanding geopolitical tensions with Beijing. The latter has recently curbed exports of rare earth magnets to India, crucial for industries like automobiles and consumer electronics.
'One thing is very clear—the technology for affordable new energy vehicles resides in China. No other country can match what they've achieved. That said, we're aware of the geopolitical tensions, which is why we're focusing on localising manufacturing,' said Jindal.
'The partnerships we've entered are strictly for technology licensing- —to get the know-how, not to rely on imports," he said.
For instance, he said, the Windsor EV was launched with less than 30 per cent localisation but by this year-end, it will touch 72 per cent, and the plan is to take it close to 90 per cent.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles

The Hindu
26 minutes ago
- The Hindu
Chennai Corporation plans to tap nearly ₹100 crore revenue from ads on street light poles and medians
The Greater Chennai Corporation (GCC) expects to generate ₹94.6 crore over three years by using spaces on street light poles and medians. The civic body has initiated a six-year Public-Private Partnership (PPP) project to assign advertisement rights on medians and street light poles across its bus route roads. According to GCC officials, over 2 lakh street light poles and more than 17,000 medians along bus route roads (BRRs) within corporation limits will be made available for advertising. This is based on the resolution passed by the GCC Council at a general meeting on February 22, 2024. According to the resolution, usually a limited budget has been allocated for Out-of-Home (OOH) advertisements in Chennai with advertising agencies. To introduce and promote the new OOH opportunities in Chennai, a pilot project was essential. Packages Zones in the package Total Revenue to the Authority in crores (for 3 years) Package 1 1,2,3,4,5 ₹19.23 Package 2 6,9 ₹28.91 Package 3 (Pilot) 7,8,10 ₹26.79 Package 4 11,12,13,15 ₹19.68 Total ₹94.6 Based on the resolution, the current project has been chalked out. It is divided into four packages based on how busy each area is and how much ad revenue it can bring in - that is roads with more vehicular movement and footfall may get more advertisements in these spaces. This will be the pilot, which will undergo a three-month study before tenders are released for the remaining packages, according to civic officials. GCC's standards for advertisement displays are restricted to a maximum size of 0.6 metres in length and 1 metre in breadth. As per the Tamil Nadu Urban Local Bodies (TNULB) Rules 2023, the annual license fee is ₹3,000 per square metre, with an application fee of ₹2,000 per unit, payable once every three years. The Greater Chennai Corporation has proposed a resolution to maximise the usage of existing assets in the Electrical Department, specifically, by installing advertisements on street light poles to increase revenue. The size of the display and panel have been proposed in the… — R Aishwaryaa (@AishRavi64) February 22, 2024 The frame must be 3 centimetres wide and 5 centimetres in length, constructed from steel or aluminium with a galvanised iron backing. Advertising materials must be fire-retardant, low-smoke, zero-halogen, and must follow all Indian and international standards.


Economic Times
26 minutes ago
- Economic Times
Logistics played key role in Operation Sindoor success, says Rajnath Singh
Synopsis Defence Minister Rajnath Singh lauded Indian agencies for their seamless logistics management during Operation Sindoor, emphasizing its crucial role in the operation's success. He highlighted that modern warfare relies not only on weaponry but also on the timely delivery of resources. Seamless logistics management by Indian agencies-from mobilisation of the armed forces to delivering equipment at the right time and place-was a deciding factor in the success of Operation Sindoor, defence minister Rajnath Singh said on Sunday. ADVERTISEMENT In a virtual address at the convocation ceremony of Vadodara-based Gati Shakti Vishwavidyalaya (GSV), the minister said in the current era, wars are not just won by guns and bullets but by time-bound delivery of material, highlighting Op Sindoor as an example of excellent logistics management. "Whether it's soldiers fighting on the border or personnel engaged in disaster management, without coordination or proper management of resources, even the strongest of intentions weaken. Logistics is the power that transforms chaos into control. Power is measured not only by weapons, but also by timely resource management. Be it war, disaster or global pandemic, the nation which keeps its logistics chain strong is the most stable, secure and capable," he said. (You can now subscribe to our Economic Times WhatsApp channel) (Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online. NEXT STORY


Time of India
40 minutes ago
- Time of India
Industry welcomes India-UK trade pact
Ludhiana: The recently signed India-UK FTA, officially known as the Comprehensive Economic and Trade Agreement (CETA), has been welcomed as a transformative development for Punjab's industrial landscape by key industry leaders in the region. Upkar Singh Ahuja, president of the Chamber of Industrial and Commercial Undertakings, said, "This agreement is a transformative opportunity for Punjab's industrial and economic landscape." He emphasised that it will allow Punjab-based exporters to gain a competitive edge through reduced tariffs and improved market access, leading to a significant increase in exports. "It paves the way for technology exchange, skill development, and joint ventures, particularly MSMEs," he said. Echoing similar sentiments, Pankaj Sharma, president of the Association of Trade & Industrial Undertakings, hailed the pact as a "historic development" that will reshape India-UK trade relations over the next five years. "This landmark pact will double India-UK trade by eliminating tariffs on 99% of Indian exports," Sharma said, adding that labour-intensive sectors such as textiles, garments, footwear, and jewellery would gain the most. Pointing out the implications for Punjab specifically, Sharma said cities like Ludhiana, home to a vast network of textile and hosiery units, and Jalandhar renowned for its sports goods industry, stand to benefit directly. "Zero tariffs on textile exports will allow our manufacturers to compete on equal footing with countries like Pakistan, Bangladesh, and Cambodia," he added. The agreement also grants tariff exemptions on exports of basmati rice, fruits, and cotton, major agricultural commodities from Punjab, thus promising a boost for farmers and agro-industries. Sharma further added that the FTA would open up new horizons for young entrepreneurs, especially those working in emerging sectors and advanced manufacturing technologies. BOX BOOST TO BIZ TIES By providing duty-free access to the UK market for key products such as textiles, auto components, tractor parts, and sports goods, including soccer balls, cricket gear, and non-electronic toys, as well as packaged food and vegetables, the FTA will strengthen our manufacturing sectors, known globally for quality and innovation Upkar Singh Ahuja, president, Chamber of Industrial and Commercial Undertakings This landmark pact will double India-UK trade by eliminating tariffs on 99% of Indian exports. Labour-intensive sectors such as textiles, garments, footwear, and jewellery will gain the most Pankaj Sharma, president, Association of Trade & Industrial Undertakings