Strategic shift
Chinese auto giant SAIC and India’s JSW group have joined hands to lead MG’s India operations
THE JOINT VENTURE WILL FOCUS MORE ON GREEN MOBILITY
MG MOTOR STARTED WELL IN INDIA with the launch of their Hector and Gloster SUVs, but growing tensions between India and China have since slowed down business as the government is tightening its grip on Chinese investments in India. This has led to slower-than-expected growth for the brand in India. To counter this, the brand revealed earlier this year that they’re looking to partner with Indian investors, hoping to boost their India plans. Enter JSW – the Indian giant has just bought a 35 per cent stake in MG’s India operations.
Going by the statements, JSW will jointly run the automobile unit in the country with SAIC focusing on expanding local operations and increasing local sourcing. This would include another manufacturing facility in Gujarat aiming to double the total capacity. SAIC will continue to support the venture as it did previously but the joint venture will focus more on green mobility, introducing new EVs and improving charging infrastructure.
Parth Jindal of SAIC said, “Our strategic collaboration with SAIC Motor aims to grow and transform the MG Motor operations in India with a focus on green mobility solutions. The joint venture paves the way for bringing a world-class technology-enabled futuristic suite of automobile products including the new generation of intelligent connected NEVs and ICE vehicles. The JV’s focus on broader localisation initiatives will yield financially accretive synergies through economies of scale while providing the highest level of customer service.”
MG Motor started its India operations in 2019 and has since marked a steady growth in the country with a vast range of vehicles including the Comet EV. This joint venture is likely to give that growth a boost especially considering the new manufacturing plant that is in the plans. Since the venture will also focus on green mobility, it will put MG in a strong place as the country moves towards an electric future. On top of these, increasing local sourcing might also lead to a price reduction – but – no updates as of now. ⌧