JSW Group 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.
