New Delhi: The $22 billion JSW Group, which is run by Sajjan JindalIt is believed to be in the final stages to enter the automotive business and is in advanced talks to pick up a stake in the Indian operations of China’s SAIC-owned MG Motor or its compatriot BYD Group. Both the companies currently operate in India but are facing hurdles in raising funds.
Chinese companies are looking to rope in Indian partners as they face challenges in getting access to fresh funds after the government launched several investigations on investment flows following border and diplomatic tensions between the two countries. Chinese company Great Wall Motor’s attempt to acquire General Motors’ Maharashtra plant failed as it could not manage to get approvals around investment and security. Sources said JSW Group, which has interests in steel and energy, has been eyeing the automotive sector for several years and finds opportunities with one of the Chinese companies in terms of technology and experience.
“Talks between JSW Group and MG Motor have been on for some time now and are progressing well. The Indian company had also tied up with BYD for a partnership. The final decision on partner, stake and investment can be taken soon.
When contacted, a spokesperson of JSW Group declined to comment on the matter. A spokesperson for MG Motor in India said, “the company does not comment on speculation”. BYD representatives in India did not respond to a questionnaire.
Sources said MG Motor could be the “front-runner” for the deal, especially as the company now has a healthy and vibrant automotive business in the country and is expected to turn profitable by the end of the year. The company, which sells models such as Hector and Gloster, will sell 48,000 units in 2022 and double the number this year, riding on demand expected from ‘Comet’, a new entry-level mini electric that will hit the market later this month. The target has been set.
Rajeev Chaba, MD of MG in India, had recently told TOI that the company is ready to reduce stake in its Indian operations to raise funds.
BYD is now training its guns for a bigger Indian business with its electrics. The company has been in India for over a decade, but its operations were limited to commercial vehicles. It unveiled its first consumer Electric Car Last year.
Chinese companies are looking to rope in Indian partners as they face challenges in getting access to fresh funds after the government launched several investigations on investment flows following border and diplomatic tensions between the two countries. Chinese company Great Wall Motor’s attempt to acquire General Motors’ Maharashtra plant failed as it could not manage to get approvals around investment and security. Sources said JSW Group, which has interests in steel and energy, has been eyeing the automotive sector for several years and finds opportunities with one of the Chinese companies in terms of technology and experience.
“Talks between JSW Group and MG Motor have been on for some time now and are progressing well. The Indian company had also tied up with BYD for a partnership. The final decision on partner, stake and investment can be taken soon.
When contacted, a spokesperson of JSW Group declined to comment on the matter. A spokesperson for MG Motor in India said, “the company does not comment on speculation”. BYD representatives in India did not respond to a questionnaire.
Sources said MG Motor could be the “front-runner” for the deal, especially as the company now has a healthy and vibrant automotive business in the country and is expected to turn profitable by the end of the year. The company, which sells models such as Hector and Gloster, will sell 48,000 units in 2022 and double the number this year, riding on demand expected from ‘Comet’, a new entry-level mini electric that will hit the market later this month. The target has been set.
Rajeev Chaba, MD of MG in India, had recently told TOI that the company is ready to reduce stake in its Indian operations to raise funds.
BYD is now training its guns for a bigger Indian business with its electrics. The company has been in India for over a decade, but its operations were limited to commercial vehicles. It unveiled its first consumer Electric Car Last year.