(Corrects headline, first paragraph to clarify JSW, SAIC are forming a new JV, JSW is not taking a stake in SAIC-owned MG Motor India)
MUMBAI (Reuters) -Indian conglomerate JSW Group and China’s SAIC Motor have formed a joint venture in India with a focus on green mobility and to develop the electric vehicle ecosystem, the two companies said in a statement on Thursday.
JSW will take a 35% stake in the new Indian joint venture, the companies said.
SAIC already has a presence in India through its fully owned unit MG Motor India but has struggled to grow its presence in the country after Chinese investments faced increased scrutiny from New Delhi.
The new joint venture with JSW will also support growth of SAIC’s MG in India by increasing locally sourced auto parts, expanding the production capacity and growing its charging infrastructure, the companies said.
Both partners “shall work closely” to create greener and smarter mobility products and services and achieve “greater success for MG in India”, Wang Xiaoqiu, President of SAIC said in the statement.
MG entered India in 2019 with plans to invest about $650 million.
(Writing by Shilpa Jamkhandikar and Aditi Shah; Editing by Susan Fenton)
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