SAIC to Sell Additional 10% Stake in JSW MG Motor India
Chinese automaker SAIC Motor is set to sell an additional 10% stake in its Indian joint venture, JSW MG Motor India, to its local partner JSW Group, according to sources familiar with the matter. The move will increase JSW’s shareholding from 35% to 45%, making it the largest individual shareholder in the company, while SAIC’s stake will reduce from 49% to 39%.
The deal comes as SAIC continues to face challenges in expanding its operations in India due to investment restrictions imposed by New Delhi on Chinese companies. Sources said discussions are underway and the transaction is expected to be completed within a month. The restructuring is also expected to give JSW greater operational control and oversight of the business. SAIC reportedly plans to reinvest around ₹600 crore from the proceeds into JSW MG Motor India to support the launch of new vehicles, including hybrid and extended-range electric models.
JSW MG Motor India, currently the country’s second-largest electric vehicle manufacturer, has been expanding its presence with strong sales of models such as the Windsor EV. The company has announced plans to invest up to $418 million to introduce new vehicles and more than double its annual production capacity to 300,000 units. Despite improving India-China relations in some sectors, investment approvals for Chinese automakers remain tightly regulated, affecting expansion plans not only for SAIC but also for rivals such as BYD.
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