CCI approves JSW's 38% stake purchase in MG Motor India

Antitrust regulator Competition Commission of India (CCI) has approved the acquisition of 38% of the share capital of MG Motor India Pvt Ltd by JSW Ventures Singapore Pte Ltd.

"The acquirer is a newly incorporated entity and is not engaged in any activities as on date. It is a wholly-owned subsidiary of JSW International Tradecorp Pte. Limited and belongs to JSW Group," India's fair trade regulator says.

MG Motor India is engaged in the automobile original equipment manufacturing business and after-sale services. The target is primarily engaged in the manufacture and sale of passenger cars including electric vehicles under the brand MG, the CCI says.

This comes a day after India's largest steelmaker JSW received approval from the Odisha government to set up electric vehicle and component manufacturing projects in the state. JSW Group plans to invest around ₹40,000 crore.

In November last year, JSW Group formed a joint venture with China's state-owned SAIC Motor to acquire around 35% stake in MG Motor India. The key focus areas of the joint venture will be to pursue the development of the electric vehicle (EV) ecosystem in India and to take a leadership position in this space, the two companies said at the time.

SAIC is looking to continue supporting the joint venture with technology and products. The joint venture will also undertake multiple new initiatives including augmenting local sourcing, improving charging infrastructure, expansion of production capacity, and introducing a broader range of vehicles with a focus on green mobility.

MG Motor, an early mover in the fast-growing electric vehicle industry, is already India's second-largest EV maker. "Our EV portfolio has achieved sales exceeding 20,000 units," Gaurav Gupta, deputy managing director of MG Motor India tells Fortune India.

MG Motor India intends to launch 4-5 new cars, mostly EVs, and achieve 65-75% of its sales from the EV portfolio by 2028. "Currently, our EVs contribute 25-30% to our total sales and we aim to increase this contribution to 60-75%. We envision a future where electric vehicles play a pivotal role in shaping the automotive landscape, and we are poised to lead this charge with innovation, quality, and a customer-centric approach," Gupta says.

MG Motor India has invested ₹7,000 crore in the Indian market. "To keep up with the growing demand for MG vehicles, we are looking to add another 1.75 lakh units from the second plant and take its overall capacity to 3 lakh units per annum in the near future," says Gupta.

MG Motor India last year unveiled plans to become an Indian company in two to four years. This came after funding for Chinese firms operating in India dried up after the government amended the foreign direct investment (FDI) policy, imposing a blanket ban on investments through the automatic route by entities from countries that share borders with India.