MG Motor Parent Company To Form A Joint Venture With India’s JSW Group | V3Cars
MG Motor’s parent company, SAIC, and India’s multinational conglomerate, JSW Group, recently agreed to form a joint venture in India. The primary goal of the JV is to accelerate the adoption of green mobility in India. An obvious benefit of this joint venture is that it will Indianise the Chinese-owned, British carmaker’s India operations. With this move, a substantial percentage of the profits they generate will remain in the country and help with India’s growth.
JSW’s partnership will also help MG Motor India improve their footprint in India through the following actions:
- Local sourcing to help add to the domestic jobs, cut production costs and help keep vehicle prices competitive
- Improving charging infrastructure with the help of JSW Energy, a part of the JSW Group
- Improving production capacity from leveraging JSW Group’s production expertise in the Indian region
- Introducing more green vehicles to cover various price points
JSW Group will control 35% stake in the Indian JV operations. SAIC will continue to support the JV through introduction of advanced technologies and new products. The JV should further help MG expand their market share in India.
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Here’s what Wang Xiaoqiu, president of SAIC Motor, had to say about this development:
“The automobile business is a global industry, and like in any other similar industry, access and collaboration are crucial for its healthy growth. SAIC has always adhered to the 'win-win cooperation' approach while steadily improving our core capabilities and expanding our scale of production and sales. In the growing Indian automotive market, both partners shall work closely to bring in the best of innovation, in creating greener and smarter mobility products and services for our consumers, seizing market opportunities, continuously expanding the brand influence and market share of our products, and achieving greater success for MG in India.”
JSW Group’s Parth Jindal, who holds Director/Managing Director position in various JSW Group companies added:
“Our strategic collaboration with SAIC Motor aims to grow & transform the MG Motor operations in India with a focus on green mobility solutions. The joint venture paves the way for bringing world-class technology-enabled futuristics 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 to the Indian consumer. One of the key focus areas of this joint venture will be to pursue the development of the EV ecosystem and to take a leadership position in this space. We would like to thank SAIC and MG Motor for choosing JSW as their partners of choice and look forward to building one of India’s largest automobile companies together. The rich history of the MG brand is known to all and its success in India is there for all to see and it is truly an honour to be able to take this brand and company forward alongside a strong global partner in SAIC. We cannot wait to get going.”
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