JSW Group, promoted by Sajjan Jindal, and SAIC Motor announced an India joint venture aimed at expanding MG Motor's operations in the country. JSW announced on Nov 30 that it will own 35% of the joint venture.
"Our strategic collaboration with SAIC Motor aims to grow and transform the MG Motor operations in India with a focus on green mobility solutions," said Parth Jindal of the JSW Group in a press release. The announcement comes as the Indian government intensifies its scrutiny of Chinese investments made in the midst of border tensions.
According to a joint statement, JSW and SAIC Motor signed the agreement in London on Nov 30. JSW will co-manage the country's automobile unit with SAIC.
This will enable the maker of the Hector and Astor SUVs to expand local operations, besides giving the Indian conglomerate an entry into the rapidly growing electric vehicle segment in India. SAIC will continue to support the venture with advanced technology and products.
On Thursday, SAIC president Wang Xiaoqiu and JSW Group's Parth Jindal signed the shareholder agreement and the share purchase and subscription agreement.
On June 15, ET was the first to report on the deal's details. ET was also the first to report on October 5 that JSW Group will initially own 35-38% of the JV.
"Both partners shall work closely to bring in the best of innovation, in creating greener and smarter mobility products and services for our consumers," Xiaoqiu said in a press release.
