The majority stake sale of MG Motor India by Chinese firm SAIC looks to be in the final stages with a 51 per cent share of the Indian entity to now be in the hands of Indian investors. At the announcement of the setup of a new joint venture between MG and JSW Group, Parth Jindal, a member of the steering committee of the new JV, revealed that the entire 51 per cent majority stake in MG Motor India has been finalised with JSW holding the largest share at 35 per cent.
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The remainder of the majority stake is split between dealer partners, MG Motors India employees and the Indian Financial Institution (IFI). Of these IFI will hold the largest share at 8 per cent followed by MG India’s employees with 5 per cent and dealer partners with 3 per cent.
MG India CEO emeritus Rajiv Chaba said that the stake break-up aimed at providing incentives to the company’s dealer partners, suppliers and employees.
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In all the 51 per cent stake sale will see JSW MG Motor India raise over Rs 5,000 crore which is set to be invested into the company to increase production capacity and bring new models to market. JSW MG Motor aims to boost production at the Halol plant from the current 1 lakh units per annum to 3 lakh units. The company has however said that more investments would be made in the next 10 years to bring more products to India.
The new joint venture is set to focus on new energy vehicles (NEVs) for the Indian market including all-electric and plug-in hybrids with the first of these to arrive in September 2024. The company has confirmed that it plans to unveil NEVs for the Indian market every 3-6 months with plans in place to localise the models in the country.
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The joint venture is set to source battery packs from JSW’s recently announced battery plant in Orissa with the JSW facility also earmarked to roll out future JSW MG NEVs sometime in the future. The company has a target of selling 1 million NEVs in India by 2030.
