A private firm owned by JSW Group head Sajjan Jindal plans to acquire a stake in MG Motor India, currently owned by China’s SAIC Motor. 

What Happened? The strategic partnership, likely to be finalised in the next three to four months, will transform MG Motor India from a Chinese-owned entity to an Indian one, the Economic Times reported, citing sources. There are also plans for an eventual listing on the Indian stock market.

The conglomerate’s listed firms, JSW Steel and JSW Energy will not be involved in the venture.

The deal, which reportedly has the blessings of the government, aims to ensure a minimum of 51% equity ownership by Indians, with Jindal expected to hold 45%-48%, dealers and Indian employees owning 5%-8% and SAIC retaining the rest, sources told the business daily. 

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The valuation of MG Motor India is currently estimated to be around $1.2 billion (₹9,873.22 crore) to $1.5 billion (₹12,341.53 crore), which is significantly lower than its initial asking price of up to $10 billion (₹82,276.90 crore).

Jindal and his son, Parth Jindal, had reportedly travelled to China recently to meet the SAIC leadership and discuss the alliance. The move would align with the Indian government’s push for greater local participation in key sectors, including automotive manufacturing.

This development comes amid a broader trend of Indian authorities urging foreign companies, including Chinese mobile phone manufacturers, to bring in Indian partners and senior management for their operations in the country.

SAIC Motor has already invested close to ₹5,000 crore in India and remains committed to further infusing capital into the venture. However, the proposal had been delayed since 2020 due to border tensions between India and China. MG Motor India has relied on loans from its parent company to support its India operations.

MG Motor India, known for popular models such as Comet, ZS electric vehicles, Astor, Hector and Gloster, witnessed stable annual sales of around 50,000 units, with a growth of 21%, in FY23 and currently holds a 1.26% market share in the passenger vehicle segment in India.

Several Indian companies, including JSW, Reliance Industries, Hero Group and Premji Invest, had been reported to be in the fray for a stake in the automaker’s Indian car business.Read Next: These 3 Tata Stocks Hit 52-Week High Today: What’s Going On?