GreenergyDaily

Sep. 18, 2025

China's SAIC Motor will slash its 49% stake in its Indian joint venture and halt further investment, Reuters reported, citing five people.

SAIC's decision comes after India introduced limits on investment from its neighbours in 2020, a move widely seen as being aimed at China. Friction between the two nations intensified after a border standoff that same year.

To try and grow in India, SAIC, one of China's largest state-owned auto companies, opted to tie up with local conglomerate JSW Group.

The tie-up with JSW was meant to inject funds into the automaker's largest production base outside of China and also ease regulatory hurdles. But it has not delivered, said one of the people.

SAIC is not pulling out of India but wants to dilute its stake in JSW MG Motor significantly and will continue to provide technology and products for the venture, said a second person.

JSW has offered to purchase most of SAIC's stake to become the single largest shareholder, but the two sides disagree on valuation, with the Chinese carmaker seeking a higher price, the person said, adding that talks are ongoing.