It is reported that SAIC plans to reduce its stake in the joint venture with India's JSW

According to a report by Reuters, SAIC Motor (600104.SH) will reduce its stake in its joint venture JSW MG Motor in India.

The report indicates that the original intention of establishing the joint venture was to alleviate regulatory barriers and inject capital into local production bases, but sources cited in the report suggest that this collaborative goal has not been achieved. Insiders revealed that JSW seems to have annoyed its partner SAIC by negotiating with the Chinese automaker Chery Automobile (09973.HK) to produce cars in India.

It is reported that JSW has been eager to sell cars under its own brand and is currently in advanced negotiations with Chery regarding technical cooperation for cars that JSW will produce in India.

SAIC Motor and India's steel giant JSW Group jointly established JSW MG Motor in March 2024 to produce and sell electric vehicles under the MG Motor brand locally. The joint venture is 49% owned by SAIC, 35% by JSW, with the remaining shares held by local financial institutions, employees, and dealers.

The report mentions that SAIC has no intention of exiting the Indian market but hopes to reduce its stake in the joint venture while continuing to provide technology and products to the joint venture. As for JSW, it has proposed to acquire the majority of SAIC's stake in the joint venture to become the largest single shareholder, but there are differences in valuation between the two parties, and negotiations are still ongoing