China’s SAIC Motor on Thursday entered into a strategic joint venture with the JSW Group that will see the latter holding 35 per cent in MG Motor India.

MG Motor India is now the wholly owned subsidiary of the Chinese auto maker, which owns the British automotive brand Morris Garages. Reports had earlier said that the valuation of MG’s Indian business could potentially reach $1 billion.

A press statement said that the strategic joint venture will accelerate growth with a focus on green mobility.

Further, 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 green mobility being a major area.

The shareholder agreement and share purchase & share subscription agreement were signed by the president of SAIC Wang Xiaoqiu and JSW Group’s Parth Jindal at the MG Office in London.

The collaboration between the two is expected to create strategic synergies by bringing together resources in the field of automobiles and new technology.

Among the new initiatives that is being planned by the joint venture include augmenting local sourcing, improving charging infrastructure, expansion of production capacity, and introducing
a broader range of vehicles that will veer around green mobility.