SAIC’s MG brand to bring in JSW and other local investors in India

08 April 2024 - 08:39
By Reuters
SAIC has been counting on global markets for growth with its MG brand, which is a continuation of the iconic British marque, particularly since it and its foreign partners have lost much ground in its home market to BYD and Tesla.
Image: Supplied SAIC has been counting on global markets for growth with its MG brand, which is a continuation of the iconic British marque, particularly since it and its foreign partners have lost much ground in its home market to BYD and Tesla.

China's SAIC Motor said its MG brand would bring in local investors in India to create a more favourable operating environment in the world's third-largest auto market.

JSW Ventures, part of the JSW conglomerate, plans to buy a 35% stake in MG Motor India for 35.8-billion rupees (R8.04bn).

IndoEdge India Fund will buy an 8% stake, a dealer trust will take a 3% stake and an employee stock ownership plan will own 5%.

New Delhi has sought to limit investments from Chinese companies amid geopolitical and trade tensions.

"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 favourable conditions for sustainable and healthy development," SAIC said t late on Sunday.

SAIC has been counting on global markets for growth with its MG brand,  which is a continuation of the iconic British marque, particularly since it and its foreign partners have lost much ground in its home market to BYD and Tesla.

Nearly a quarter of SAIC cars sold in 2023 were exported.