The Competition Commission of India (CCI) has granted approval to JSW Ventures Singapore’s acquisition of up to 38 percent of MG Motor India, according to an order statement released on January 23.
JSW Ventures Singapore, a newly incorporated entity and wholly owned subsidiary of JSW International Tradecorp, belonging to the renowned JSW Group, is set to acquire approximately 38% of the share capital of MG Motor India Private Limited. The detailed order from the Commission is yet to be released.
The initial reports of this acquisition surfaced in June 2023, indicating that Sajjan Jindal was expected to hold around 45-48 percent ownership in MG Motor India, while dealers and Indian employees were likely to have a 5-8 percent stake.
A senior government official highlighted, “It will become an Indian entity, instead of a Chinese one, with an eventual India listing in the next few years.” This transition also involves an increased share of Indians in the top management and board of the company.
Despite being owned by a Chinese company, MG Motor, with models like Comet and ZS electric vehicles, has consistently emphasized the British heritage of the MG brand since its launch in 2019, featuring actor Benedict Cumberbatch as a brand ambassador.
The Acquisition Deal: Transforming MG Motor’s Operations
In December, reports surfaced that JSW Group would own 35 percent in a newly created joint venture (JV) with SAIC Motor Corp. Ltd, the current owner of MG Motor India. This JV would primarily focus on electric vehicles (EVs), with the aim to become the majority shareholder in two years. The remaining ownership of the JV is yet to be decided. The partnership is poised to transform MG Motor’s operations in India, with a specific emphasis on the electric vehicle space.
The shareholder agreement and share purchase and share subscription agreement were formally signed by Wang Xiaoqiu, president of SAIC Motor, and Parth Jindal of JSW Group at the MG Office in London. However, the spokesperson for JSW Group refrained from commenting on the value of the 35% stake.
Parth Jindal expressed, “Our strategic collaboration with SAIC Motor aims to grow and transform the MG Motor operations in India with a focus on green mobility solutions.” The JV is expected to contribute to broader localization initiatives, enhancing charging infrastructure, expanding production capacity, and introducing a more extensive range of vehicles, particularly focusing on green mobility.
EV Market Focus: JSW Group’s Strategic Move
The Indian EV market, valued at $2 billion in 2023, is projected to more than triple to $7.09 billion by 2025. Industry estimates suggest that the number of EVs on Indian roads will rise to 50 million by 2030 from approximately 1.4 million as of August 2022. By 2030, the Indian EV market is expected to reach 10 million units in annual sales.