JSWHL

By Aditi Shah and Neha Arora

NEW DELHI, Sept 18 (Reuters) - China's SAIC Motor 600104.SS will slash its 49% stake in its Indian joint venture and halt further investment, five people said, the latest sign of how political tension between the Asian neighbours is spilling over into business.

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.

Indian and Chinese leaders met last month to ease relations, raising hope of improved business ties. There has since been little sign of progress, with Indian auto firms, for instance, still awaiting Chinese approval to buy rare earths from China.

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. All five of the people familiar with the matter declined to be identified because they weren't authorised to speak publicly about it.

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.

SAIC, JSW and JSW MG Motor did not respond to requests for comment.

STALLED INVESTMENT PROPOSALS

The friction between the two companies is not all down to politics.

JSW also appears to have irked its partner by pursuing talks with rival Chinese firm Chery Automobile CHERY.UL to build cars in India, three of the people said.

JSW has long wanted to sell cars under its own brand and talks are at an advanced stage with Chery for a technology, not equity, partnership for cars JSW will build in India, said one of the people.

Chery did not respond to a request for comment.

India, the world's third-largest auto market, is increasingly positioning itself as a production hub for the industry. Japan's Suzuki Motor 7269.T, the dominant player in India, plans to invest some $8 billion there over the next five to six years and make the country its global production base for electric cars.

SAIC entered India in 2019 under its MG Motor brand with plans to invest more than $650 million. It took over a former General Motors GM.N factory in western Gujarat state with an annual production capacity of about 120,000 cars.

In 2020, it submitted an investment proposal to build electric vehicles under a government incentive scheme but was declined.

Last year, it sold a majority stake in the local company to Indian entities with JSW picking up a 35% share for about $300 million, valuing the maker of the Hector SUV and Windsor EV at $1.2 billion. Proceeds went to SAIC rather than the local entity, two of the people said.

JSW MG Motor has since submitted a proposal to invest $240 million in EV manufacturing, the outcome of which is pending.

A sticking point is whether any return on investment will go to China considering the source of the initial funds, said a third person.

The ministries of heavy industries and commerce, which are reviewing the proposal, did not immediately respond to requests for comment.

JSW MG Motor is losing money and cash flow is constrained, earnings reports filed with the government showed. Still, it sold 61,000 cars in 2024 from 16,500 in 2019 and, while sales of its traditionally powered cars are falling, it has become India's second-biggest EV maker after Tata Motors TAMO.NS.

Competition in the world's third-largest car market is set to intensify with the July entry of U.S. EV peer Tesla TSLA.O.

(Reporting by Aditi Shah and Neha Arora; Additional reporting by Nikunj Ohri in New Delhi and Brenda Goh in Shanghai; Editing by Christopher Cushing and David Dolan)

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Oct 25 (Reuters) - JSW Holdings Ltd JNSW.NS:

• JSW HOLDINGS SEPT-QUARTER CONSOL PROFIT 1.2 BILLION RUPEES

• JSW HOLDINGS SEPT-QUARTER CONSOL TOTAL REVENUE FROM OPERATIONS 1.62 BILLION RUPEES

Source text for Eikon: ID:nNSE7c7s0d

Further company coverage: JNSW.NS

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Dec 1 (Reuters) - JSW Holdings Ltd JNSW.NS:

• CO NOT A PART OF DISCUSSION ON JSW GROUP HOLDING 35% STAKE IN MG MOTOR INDIA

Source text for Eikon: ID:nBSE9g7lGJ

Further company coverage: JNSW.NS

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Oct 9 (Reuters) - JSW Holdings Ltd JNSW.NS:

• NOT IN ANY DISCUSSION AS REFERRED TO IN NEWS ITEM 'SAJJAN JINDAL, SAIC SET TO DRIVE MG MOTOR IN INDIA'

• NO PROPOSAL PLACED FOR DISCUSSION OF BOARD OR ANY OF ITS COMMITTEES

Source text for Eikon: ID:nBSE7K0jyr

Further company coverage: JNSW.NS

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** Shares of HeidelbergCement India HEID.NS rise as much as 4.9% to 187.75 rupees, highest since June 6

** JSW Cement JSWC.NS is in initial talks with German Heidelberg Materials AG HEIG.DE to acquire HEIG's cement business in India, Economic Times reported on Tuesday, citing sources aware of the talks

** HEIG yet to take a final call on India exit strategy and sources say it may decide to opt for a bidding process, report adds

** JSWC and HEIG did not immediately respond to Reuters' requests for comment

** Over 410,000 shares change hands as of 9:28 a.m. IST, 0.9X the 30-day moving average

** Mean rating of 12 analysts is "hold"; median PT is 195 rupees - LSEG data

** Stock last up 2.7%, trimming YTD loss to 2%

(Reporting by Varun Vyas in Bengaluru)

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BENGALURU, May 10 (Reuters) - China's SAIC Motor 600104.SS plans to drop its ownership in MG Motor India to allow domestic entities to take a majority stake, the Indian electric vehicle maker said on Wednesday, as Chinese investments face increased scrutiny by the New Delhi government.

MG also plans to invest more than 50 billion rupees ($611.4 million) to build a second plant in India amid a slew of other proposals, including exploring cell manufacturing, with the aim that at least 65% of its sales comprise of EVs from 2026.

While MG did not detail how or when SAIC would start lowering its stake, local media quoted MG managing director, Rajeev Chaba, saying the first step will be announced this year, with the aim to be majority owned by Indians in 2-4 years.

Two weeks back, local media reported that JSW Holdings Ltd JNSW.NS, the financial arm of Indian conglomerate JSW Group, was in talks to buy a stake in MG. JSW denied the report.

MG did not immediately respond to a request for comment.

MG entered India in 2019 with plans to invest about $650 million. But New Delhi has sought to limit investments from Beijing after a 2020 clash between soldiers from the two countries on their disputed Himalayan border.

Last November, the government asked MG to explain why it posted a loss in 2019-2020, its first year of operations.

Nonetheless, MG, last month, launched its second electric offering and India's lowest-priced EV – the Comet EV – as it seeks to take on local market leader Tata Motors TAMO.NS.

It now plans to launch four to five new vehicles, mostly electric.

MG also said it would look to turn profitable by 2025 and raised its annual sales target to 100,000 units from 80,000 earlier.

The company has a manufacturing facility in the western Indian state of Gujarat, with an annual production capacity of 125,000 vehicles.

($1 = 81.7800 Indian rupees)

(Reporting by Nandan Mandayam in Bengaluru; Editing by Savio D'Souza)

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April 26 (Reuters) - JSW Holdings Ltd JNSW.NS:

• JSW HOLDINGS - ON REPORT OF JSW IN TALKS TO PICK UP STAKES IN MG, BYD INDIA, SAYS NO SUCH PROPOSAL PLACED FOR DISCUSSION

Further company coverage: JNSW.NS

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Adds response from MG Motor

** Shares of JSW Holdings Ltd JNSW.NS surge as much as 20% to a 19-month high of 4,750.55 rupees

** Shares ended up 13.1%, snapping three straight sessions of losses

** Sharp uptick in the stock of non-banking financial company that forms the investment arm of the JSW Group comes on reports that the conglomerate is in talks with MG Motor India and BYD India to pick up stake in the companies

** MG Motor is owned by China's largest car company, Shanghai Automotive

** JSW Group eyes 15%-20% stake in MG Motor for 20 bln rupees ($244.13 mln) to 30 bln rupees, according to reports, citing sources close to the discussions

** "We do not comment on speculation," MG Motor India said, while JSW Group and BYD India did not immediately respond to Reuters' request for comment

** Trading volume on JNSW surged to 24,364 shares, nearly 40 times the 30-day avg of 613 shares - Refinitiv data

($1 = 81.9230 Indian rupees)

(Reporting by Bharath Rajeswaran in Bengaluru)

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