According to a report by the Hindustan Times, India's Jindal Southwest Group (JSW) is attempting to acquire a portion of the shares of MG Motor India, a fully-owned subsidiary of SAIC Motor Corporation in India. This acquisition has received strong support from the Indian government.
JSW Group is expected to hold 45-48% of the shares in SAIC's MG India, while dealers and Indian employees will hold 5-8% of the shares. Through this move, JSW will surpass the Chinese shareholding percentage. As a result, SAIC Motor Corporation will lose control over its Indian subsidiary, with its shareholding not exceeding 49%. MG India will become a company controlled by Indians.
Another intriguing piece of information revealed by Indian media is that SAIC initially valued its Indian subsidiary's assets at USD 8-10 billion for the acquisition, but after "negotiations," the valuation of MG India's assets was reduced to USD 1.2-1.5 billion.
SAIC's Indian subsidiary, MG India, was officially established in early 2017. The total investment amounted to CNY 3.275 billion, including the acquisition of the Halol plant of General Motors India in the state of Gujarat and its thorough transformation. Based on this, a modern automotive production base and supporting industrial park were established. In April 2019, the Halol plant was completed and put into operation, making SAIC the first Chinese automaker to establish a manufacturing plant in India.
