Can MG be Jindal's EV goldmine?

IN JUNE THIS year Sajjan Jindal confirmed that an alliance with MG Motor India to manufacture electric vehicles (EV) was on the JSW Group's radar

- SWARAJ BAGGAONKAR

• PREMIUM PLAY

The steel magnate, chairman of the JSW Group, asserted it was time to foray into a consumer-facing business, much like other conglomerates have done. He was looking for a premium play in the EV space. "I feel EVs are going to be a major driver of mobility and we want to be there," Jindal had said in an interview.

Soon thereafter in August, Jindal re-iterated that the Shanghai-based SAIC Motor, the maker of Hector and Astor SUVs, would be its preferred partner if things worked out. Else the Group would make cars on its own.

As it turns out, a private entity owned by Jindal might soon pick up a 35% stake in MG Motor with an option to take this up to 49% and 51% post an IPO.

The willingness to buy into MG Motor India reflected something of a softening of Jindal's stance on teaming up with Chinese players. At one point, he had expressed reservations about China's' behavior' saying the rules of engagement on trade and business might need to be different.

He maintains of course that he would not work with the Chinese if intergovernment relations are hostile.Jindal said in an interview to a television channel, it was a difficult situation. "If the technology is available only in China and the cost structure that the Chinese can provide us, the Europeans cannot, we have to think twice before we really decide," he said.