China’s SAIC Motor plans to reduce its stake in JSW MG Motor India and halt further investments. The carmaker currently holds a 49% stake in the Indian JV. The decision comes after the Indian government put restrictions on Chinese investments, following the 2020 border standoff between the two countries. Prime Minister Narendra Modi and Chinese President Xi Jinping met last month on the sidelines of the SCO summit. It was seen as a step towards improving business ties between the two Asian giants. However, according to media reports, there has been little sign of progress. The tie-up with JSW was meant to inject funds into SAIC’s largest production base outside of China and ease regulatory hurdles. However, it has not delivered. Hence, SAIC has decided to dilute its stake in JSW MG Motor India significantly but will continue to provide technology and products for the venture. Source:Reuters
