Login

Indian Investors to Hold 51 Per Cent Stake In JSW MG Motors India

Chinese firm SAIC to retain 49 per cent stake in JSW MG Motors India.
Calendar-icon

By Jaiveer Mehra

clock-icon

2 mins read

Calendar-icon

Published on March 21, 2024

Follow us on

google-news-icon
Story

Highlights

  • MG India employees, dealers to hold 5 and 3 per cent stake
  • Indian Financial Institution to hold 8 per cent stake
  • JSW MG Motor to bring more new energy vehicles to India.

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. 

 

Also Read: MG-JSW Plot New Models Every 3-6 Months, 1st Launch Under JV Confirmed For September

 

MG JSW Plot New Models Every 3 6 Months 1st Launch Under JV Confirmed For September

 

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.

 

Also Read: MG Cyberster Electric Roadster Makes India Debut

 

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.

 

MG JSW Plot New Models Every 3 6 Months 1st Launch Under JV Confirmed For September 3

 

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.

 

Also Read: JSW Signs MoU To Build EVs, 50 GWh Battery Plant In Odisha With Rs 40,000 Cr Investment

 

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.

Stay updated with automotive news and reviews right at your fingertips through carandbike.com's Google News

Related Articles

Latest News

Popular MG Models