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NEW DELHI: The $22-billion JSW Group, run by Sajjan Jindal, is believed to be in final stages for a foray into automotive business and is in advanced negotiations to pick up a stake either in Indian operations of China’s SAIC-owned MG Motor or its compatriot BYD Group. Both the companies currently operate in India, but are facing fund-raise constraints.
Chinese companies have been looking to induct Indian partners as they face increased challenges in getting access to fresh funds as the government had introduced multiple checks on investment inflows into them, following border and diplomatic tensions between the two countries. Chinese company Great Wall Motor’s attempt to acquire the Maharashtra plant of General Motors collapsed as it could not manage to get approvals around investments and security. Sources said JSW Group, which has interests in steel and energy, has been eyeing the automotive sector for many years now and finds opportunities with either of the Chinese companies as a good fit in terms of technology and experience.
“Talks have been on between JSW Group and MG Motor for some time now, and these have been progressing well. The Indian company had also engaged with BYD for a partnership. A final decision on the partner, stake, and investments is likely to be taken soon,” sources toldTOI.
When contacted, a spokesperson for JSW Group refused to comment on the matter. A spokesperson for MG Motor in India said the “company doesn’t comment on speculation”. BYD representatives in India did not reply to a questionnaire.
Sources said MG Motor “may be a front-runner” for the deal, especially as the company now has a healthy and vibrant automotive business in the country and is looking to turn profitable by the year-end. The company, that sells models such as Hector and Gloster, sold 48,000 units in 2022 and is targeting to double the number this year, riding on expected demand from a new entry-level mini electric ‘Comet’ that hits the market later this month.
Rajeev Chaba, MD of MG in India, had recently told TOIthat the company is ready to dilute stake in its Indian operations to raise funds.
BYD is now training its guns for a larger India business with its electrics. The company has been in India for over a decade but had confined operations to commercial vehicles. It unveiled its first consumer electric car last year.
Chinese companies have been looking to induct Indian partners as they face increased challenges in getting access to fresh funds as the government had introduced multiple checks on investment inflows into them, following border and diplomatic tensions between the two countries. Chinese company Great Wall Motor’s attempt to acquire the Maharashtra plant of General Motors collapsed as it could not manage to get approvals around investments and security. Sources said JSW Group, which has interests in steel and energy, has been eyeing the automotive sector for many years now and finds opportunities with either of the Chinese companies as a good fit in terms of technology and experience.
“Talks have been on between JSW Group and MG Motor for some time now, and these have been progressing well. The Indian company had also engaged with BYD for a partnership. A final decision on the partner, stake, and investments is likely to be taken soon,” sources toldTOI.
When contacted, a spokesperson for JSW Group refused to comment on the matter. A spokesperson for MG Motor in India said the “company doesn’t comment on speculation”. BYD representatives in India did not reply to a questionnaire.
Sources said MG Motor “may be a front-runner” for the deal, especially as the company now has a healthy and vibrant automotive business in the country and is looking to turn profitable by the year-end. The company, that sells models such as Hector and Gloster, sold 48,000 units in 2022 and is targeting to double the number this year, riding on expected demand from a new entry-level mini electric ‘Comet’ that hits the market later this month.
Rajeev Chaba, MD of MG in India, had recently told TOIthat the company is ready to dilute stake in its Indian operations to raise funds.
BYD is now training its guns for a larger India business with its electrics. The company has been in India for over a decade but had confined operations to commercial vehicles. It unveiled its first consumer electric car last year.
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