Client:
MG Motor India
Industry:
Automotive
Our role:
Corporate Finance
Client territory:
India
Chapter 1 Setting the Scene
MG Motor India is a prominent technology-driven passenger vehicle OEM in India. It has an annual production capacity of over 100,000 cars annually and stands in a distinctive position to both benefit from and expedite the adoption of EVs in India. MG Motor India is a subsidiary of SAIC Motor, a global leader in the new energy vehicle sector. MG Motor India plans to capitalize on SAIC Motor’s EV expertise, gain access to advanced technologies, and introduce relevant vehicles in India from SAIC Motor’s global portfolio featuring over 80 new energy vehicles.
MG Motor India was looking for a local partner to scale up its India operations, including securing a local supply chain, building its EV portfolio, and achieving its ambition to increase production capacity to over 300,000 cars annually.
JSW Group is a conglomerate ranked among India’s leading business houses. They had been considering options to set up its own EV business for several years. The Group plays a vital role in driving India’s economic growth in various sectors, including Steel, Energy, Infrastructure, and Venture Capital. It is recognized for creating value by blending its growth roadmap with superior execution capabilities, including its expertise in manufacturing at scale in India.
Chapter 2 How we helped
PwC India's Corporate Finance team served as the exclusive financial advisor for MG Motor India and SAIC Motor. PwC’s integrated proposition anchored around market understanding, industry experience and access to investors domestically and globally. PwC India’s pitch was successful against competition from a variety of bulge bracket and domestic investment banks.
Leveraging their comprehensive range of services, PwC India assembled an integrated Deals team across corporate finance, deal strategy and tax structuring to execute the transaction. This collaborative effort successfully addressed critical aspects of this complex deal, managed all the moving parts, facilitating the structuring of the Joint Venture partnership between SAIC Motor and JSW Group (to form JSW MG Motor India Pvt. Ltd).
“In JSW Group, we have found an ideal local partner to continue the growth story of the MG brand in India. In less than five years, Team MG India has established a rock-solid foundation – a testament to our commitment to innovation, diversity, community service and robust customer care. Today, we are among the fastest-growing OEMs in the country. This foundation empowers us to embark on a new chapter, MG 2.0, and the joint venture marks a pivotal step in this journey. We will offer a range of vehicles from ICE to NEVs, staying focused on building a robust and sustainable EV ecosystem in India. We are firmly committed to expanding our manufacturing footprint with extensive localization by leveraging JSW Group’s extensive knowledge and expertise in manufacturing at scale.”
Chapter 3 Making a Difference
The strategic collaboration between SAIC Motor and JSW Group aims to create synergies by combining resources in the automotive and new technology sectors. The Joint Venture will embark on various initiatives, including enhancing local sourcing through a robust supply chain, improving charging infrastructure, expanding production capacity, and introducing an extended range of vehicles with a focus on green mobility.
The combined strengths of SAIC Motor and JSW Group uniquely positions JSW MG Motor India to seize opportunities and lead the pivotal shift to EVs in India, aiming to become the bellwether in the Indian EV Market.
“PwC Corporate Finance served as exclusive financial advisors to SAIC Motor and MG Motor on this momentous transaction. A big thank you to the MG Motor team for their faith in us and providing us with this opportunity. Wishing the SAIC, MG and JSW teams all the very best in the days to come.”
