JSW is acquiring a 35% share in MG Motor India, while IFI is securing an 8% stake. Dealers are also investing with a 3% stake, while 5% is being reserved for employees.

In the newly established JSW MG Motor India, Indian investors will hold a significant majority stake. This venture is a collaboration between the JSW Group and China’s leading automaker, Shanghai Automotive Industry Corporation’s British brand MG Motor India. The chairman of this joint venture will be appointed from the JSW Group.

Parth Jindal, one of key members of steering committee of JSW MG Motor India said, “JSW is taking a 35 percent stake in MG Motor India. Apart from JSW, the Indian Financial Institution (IFI) is taking an 8 percent stake in the joint venture. The dealers are buying 3 percent in the joint venture, and 5 percent is being kept for the employees. So, 51% of the company will be owned by Indians and the total investment that is being made is above 5,000 crore into this century.”

In May 2023, MG Motor disclosed its intention to “Indianize” the company, aiming for a majority stake to be held by an Indian promoter within 4-5 years. This vision has materialized on the inaugural day of the venture. The decision was prompted by MG Motor’s failure to secure FDI approvals from the Indian government amidst geopolitical tensions with China.

This comprehensive agreement encompasses both the current offerings of MG Motor India and forthcoming products in the pipeline. The JSW MG Motor joint venture is set to inject Rs 5000 crore into the initial phase of launching the venture.

Rajiv Chaba, CEO Emeritus of MG Motor India while detailing the parameters of the joint venture, said, “We wanted to set an example and incentivise our dealers, marketing partners and employees. This is a one-of-a-kind of structure in the automotive industry – where dealers and employees are the (part) owners of our company. Mr Jindal wanted this to happen in the automotive industry as he does in many of its other businesses. The deal was structured in a way that it is a win-win for all stakeholders of the company.”

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