Chinese Automaker MG Motors Will Now Become An Indian Automobile Company! Find Out How?


Radhika Kajarekar

Radhika Kajarekar

Jun 16, 2023


A privately-owned company belonging to Sajjan Jindal, the chairman of JSW Group, is planning to acquire a stake in MG Motor India, a subsidiary of SAIC Motor based in Shanghai. The venture will not involve JSW Steel and JSW Energy, which are listed companies of the JSW Group.

Chinese Automaker MG Motors Will Now Become An Indian Automobile Company! Find Out How?

This will make MG Motor India an Indian company.

Sajjan Jindal To Acquire 48% of MG Motor India

Under the current understanding, Sajjan Jindal is expected to hold around 45-48% ownership in MG Motor India, while dealers and Indian employees may hold 5-8%. The remaining share will be held by SAIC, ensuring that at least 51% of the equity is owned by Indian entities, with the Chinese side becoming a minority partner holding a maximum of 49%. 

The Indian government has reportedly approved this plan, aiming to transform MG Motor India into an Indian entity with the possibility of an India listing in the future.

The transition will involve increasing the share of Indians in the top management and board of the company. This move aligns with the government’s request for Chinese mobile phone manufacturers to involve Indian equity partners and senior management in their Indian operations.

Negotiations between Sajjan Jindal and SAIC leadership have been ongoing for several months and gained momentum as both parties reached an agreement on the deal structure. 

Valuation of MG Motor India Is Around ₹9,800-12,300 Crore

The valuation of MG Motor India is estimated to be around $1.2-1.5 billion (₹9,800-12,300 crore), significantly lower than the initial valuation expectation of $8-10 billion.

Legal agreements have been initiated to establish a formal and binding agreement, with the aim of completing the process within the next three to four months. A new brand identity will be created to reflect the corporate identities of both partners.

SAIC has already invested around ₹5,000 crore in India and has plans for further investment. However, the proposal has been delayed since 2020 due to strained relations between India and China caused by border tensions. MG Motor India has relied on external commercial borrowings from its parent company to sustain its operations in India.

Currently owned by a Chinese organization, MG Motor India offers various models, including the Comet and ZS electric vehicles, as well as the Astor, Hector, and Gloster. 

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Radhika Kajarekar
Radhika Kajarekar
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