The JSW Group is preparing to increase its stake in MG Motor India, following Chinese automotive giant SAIC Motor’s strategic decision to exit the Indian market. The move signals JSW’s commitment to strengthening its footprint in the country’s rapidly growing electric vehicle (EV) and passenger car segment.
Currently, JSW holds a 35 percent stake in the joint venture. With ongoing negotiations to acquire an additional 8 percent from private equity firm Everstone Capital, JSW’s holding is expected to rise to 43 percent. This development would make JSW the largest private stakeholder in MG Motor India, giving it greater strategic control over operations and long-term planning.
Shift in Control and Strategy
SAIC, the founding entity behind MG Motor India, is gradually reducing its role in the Indian market due to regulatory constraints and geopolitical concerns. The Chinese company currently holds 49 percent in the joint venture but is in the process of diluting its share to below 49 percent to give Indian investors majority ownership.
JSW’s increased investment aligns with its broader plan to establish a strong presence in the automotive sector. The group aims to expand MG Motor India’s manufacturing capacity, strengthen local supply chains, and roll out new models catering to both conventional and electric vehicle segments.
EV Expansion and Localization
With the automotive industry shifting rapidly toward electric mobility, JSW MG Motor India plans to scale its EV production significantly. The company has set a target to ramp up capacity to 300,000 vehicles per annum by 2030. New product launches are expected every few months, with an emphasis on affordability, technology, and sustainability.
JSW’s increased stake will also support greater localization of manufacturing, in line with the government’s “Make in India” initiative. The joint venture is working to increase local sourcing and assemble EVs domestically, reducing dependence on imports and improving cost competitiveness.
Exit of Everstone and Employee Participation
Everstone Capital, which holds an 8 percent stake, is in advanced talks to sell its entire holding to JSW. The transaction is expected to be valued between ₹1,000 crore to ₹1,200 crore. Meanwhile, efforts are underway to offer equity options to dealers and employees, promoting wider Indian ownership and aligning with national regulatory requirements.
These changes are expected to help MG Motor India become a majority Indian-owned company, with Indian promoters and stakeholders holding over 51 percent once all transitions are complete.
JSW Group’s decision to increase its stake in MG Motor India marks a significant step toward building a strong Indian automotive brand amid shifting global alliances and evolving market dynamics. With SAIC reducing its presence and JSW accelerating investment, the joint venture is well-positioned to lead the next phase of growth in India’s competitive auto and electric mobility landscape.
