Shanghai (Gasgoo)- Following the strategic partnership agreement signed with Indian steel titan JSW Group at the end of last year, SAIC Motor recently received an equity transfer payment of 26.5 billion rupees from JSW, according to SAIC Motor's press release.
To seize rapid development opportunities in the Indian market, continuously increase the market share of the MG brand, and effectively mitigate operational risks, MG Motor India has introduced JSW and other local Indian investors as its shareholders through equity transfer and capital increase methods, creating more favorable conditions for sustainable and sound development.
SAIC Motor established MG Motor India as its wholly-owned subsidiary in 2017 with a paid-in capital of 29.2 billion rupees. From this arrangement, SAIC Motor has received 26.5 billion rupees from JSW for the purchase of a 26% stake in MG Motor India, recouping the majority of its investment. Additionally, JSW, investment funds, dealer trusts, and an employee stock ownership plan will together inject 25.6 billion rupees into MG Motor India. Following the premium equity transfer and capital increase, SAIC Motor will still retain a 49% stake and a higher proportion of voting rights in MG Motor India, from which SAIC Motor expects to increase its net profit by 5 billion to 7 billion yuan.
This transaction, evaluated by an independent third-party authority, does not constitute a related party transaction and has received approval from China’s domestic regulatory bodies, said SAIC Motor.
MG Motor India's first model went on sale in June 2019. With an expanding product line, the company's sales have steadily increased from 16,528 units in 2019 to 62,010 units in 2023, ranking eighth in the Indian market and second in the local new energy vehicle segment. In 2023, SAIC Motor's overseas sales reached 1.208 million units, helping China's automobile export volume surpass Japan to become the world's largest. Currently, SAIC Motor's products and services have covered over 100 countries and regions worldwide, achieving large-scale profitability in its overseas business.
2024 marks the centennial anniversary of the MG brand, which will continue to expand its brand influence and market share. From 2024 to 2025, MG will launch over ten intelligent electric "global car models" in the markets beyond China.
