As the negotiation between M G Motor and JSW Group reaches the final leg, a dual brand strategy is being mooted as part of the future growth prospects for the alliance.
While the M G brand will continue to build its presence with ICE and EV portfolio, a new brand steered by JSW Group will focus purely on EV and high-performance EVs.
Both brands are likely to have their dedicated management team to steer the growth for the future, and the decision on the same is likely to be taken as part of the final deal, which is expected to be announced soon.
Interestingly, while the negotiations between JSW and M G Motors were ongoing – a team steered by JSW Group was also exploring technical alliances in China with the likes of Leap Motor, Changan and Great Wall for sourcing vehicle architecture and batteries.
JSW Group has acknowledged receiving queries from Autocar Professional in an email but is yet to revert its stand on the subject.
A response from M G Motor India to an email sent is awaited.
Autocar Professional had exclusively reported that M G Motor India was in talks with JSW Group for dilution of stake on April 24, 2023.
Both parties have been engaged in an intense discussion over the last 6 months, which entails JSW Group picking up a 35% stake in M G Motor India, which is also likely to see equity interest of both the companies, financial investors, and its own stakeholders that is employees and dealers, as per an ET report in June. JSW, which starts with a 35% stake, will increase it over a period of time, to hold a majority in the company in the next three to four years.
According to people in the know, the reason why the deal has not been concluded yet is due to negotiation on the valuation. M G Motor India is seeking a valuation of about $1 billion or about Rs 8,000 to Rs 8,500 crore for the stake sale, whereas JSW Group is keen on picking up the stake at a valuation of Rs 5,000 crore to Rs 6,000 crore.