Key highlights
- SAIC Motor wants to cut down its 49% stake in JSW MG Motor India and freeze new investments.
- Tensions rise as JSW eyes a tech tie-up with Chinese rival Chery.
- MG’s EV sales look solid, but FY24 closed with a INR 586 crore loss.
JSW MG Motor India is entering stormy weather. SAIC Motor, the Chinese auto giant that owns nearly half the joint venture, is planning to trim its stake and stop pouring fresh money into the business. Officially, SAIC says it’s not pulling out of India. Unofficially, it feels like they’re already halfway out the door.
Political drama
This rift has roots in politics. Ever since India tightened foreign direct investment norms in 2020, widely seen as a response to the border standoff, Chinese players have struggled to scale here. SAIC’s expansion plans for EVs got stuck in approval limbo, and even importing rare earths for battery production has been a bureaucratic nightmare.
That’s why SAIC roped in JSW Group last year. JSW picked up 35% for around $300 million, valuing MG Motor India at INR 10,000 crore. But now, JSW wants to flip the script and buy out most of SAIC’s holding and take majority control. The catch? Neither side agrees on how much the company is really worth.
JSW’s Chery flirtation makes it messier
As if the valuation drama wasn’t enough, JSW is also in deep talks with Chery Automobile, another Chinese brand for a tech partnership to roll out EVs under its own badge. Naturally, SAIC isn’t thrilled. To them, it looks like JSW is two-timing: building cars with MG on one side and plotting with Chery on the other.
The result? Nobody knows where the JV is headed. Will JSW double down on MG? Or quietly build its own brand with Chery in the driver’s seat?
Strong sales, shaky books
What makes this saga even more ironic is MG’s performance in India. Sales have shot up from 16,500 units in 2019 to over 61,000 in 2024. The brand is now India’s second-largest EV player after Tata Motors, thanks to models like the Windsor EV.
But the books tell a different story, MG India still reported a INR 586 crore loss in FY24. Its $240 million EV investment proposal hasn’t been cleared by the government, and with Tesla gearing up for its India entry, the road ahead looks anything but smooth.
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