China’s SAIC Motor is set to sell an additional 10% stake in its Indian joint venture JSW MG Motor to local partner JSW Group, according to two sources with direct knowledge of the matter. The transaction would raise JSW’s holding to 45%, making it the largest individual shareholder in the company.
SAIC currently holds 49% of JSW MG Motor. One source said discussions are ongoing and JSW expects to close the deal within a month. The deal value has not been disclosed. When JSW acquired its initial 35% stake two years ago, the venture was valued at $1.2 billion.
SAIC is expected to reinvest around Rs. 6 billion ($63 million) of the proceeds back into JSW MG Motor to fund new model launches, including extended-range EVs and hybrids, in a structure that would not alter its remaining shareholding.
The sale reflects SAIC’s continued difficulty expanding in India. The Chinese automaker entered the market in 2019 with plans to invest over $650 million but has been unable to do so after India imposed investment restrictions on Chinese companies in 2020. Bringing in domestic partners, including JSW, was part of an effort to work around those constraints.
JSW MG Motor is India’s second-largest EV maker, with sales driven largely by the Windsor EV. The company has plans to invest up to $418 million to expand production capacity to 300,000 units annually. However, losses have widened and competition from Mahindra and Mahindra is intensifying.
India has recently eased investment norms for Chinese firms in electronics but has not extended the relaxation to automakers. Rival BYD, which entered India in 2021 with plans to invest $1 billion in local manufacturing, is still awaiting government approval to bring in funds.
