JSW Ventures to acquire 35% stake in MG Motor India

MG Motor India: China-based SAIC Motor Corp Ltd has announced plans for its MG brand to onboard local investors in India, aiming to foster a more favourable operating environment in the country's thriving auto market.

JSW Ventures, a division of the JSW conglomerate, is set to acquire a substantial 35 per cent stake in MG Motor India for Rs 3,580 crore.

Additionally, IndoEdge India Fund will secure an 8 per cent stake, complemented by a 3 per cent stake from a dealer trust and a 5 per cent ownership through an employee stock ownership plan.

This move comes amidst New Delhi's efforts to restrict investments from Chinese entities amid escalating geopolitical and trade tensions.

In a statement released late on Sunday, SAIC said, "As MG Motor India aims to continue to increase MG brand's market share in India and effectively prevent operating risks, the unit plans to introduce local Indian investors to create more favorable conditions for sustainable and healthy development."

SAIC has strategically targeted global markets for expansion, particularly leveraging its iconic MG brand, which traces its legacy back to the renowned British marque. This approach becomes increasingly crucial as SAIC and its international partners face stiff competition in their domestic market, notably from BYD and Tesla.

A significant portion of SAIC's sales in 2023 were attributed to exports, underscoring the company's commitment to global growth and market diversification.

(With Reuters inputs.)