Chinese state-owned auto firm SAIC Motor is set to reduce its 49% shareholding in its Indian joint venture (JV), amid ongoing geopolitical tensions between China and India, as reported by Reuters, citing sources.
The reduction in stake by SAIC follows India’s 2020 regulatory changes that curtailed investments from neighbouring countries, which was largely interpreted as a counter to Chinese capital inflows.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
A border conflict in the same year escalated tensions between the two nations.
Despite diplomatic dialogues aimed at improving bilateral relations, there has been minimal indication of progress in the commercial sphere.
SAIC’s partnership with the JSW Group in India was intended to bolster its presence and navigate the regulatory landscape.
Nonetheless, the collaboration has not met the anticipated objectives.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataAccording to a source, SAIC is not withdrawing from the Indian market but is looking to significantly reduce its stake in the JV, JSW MG Motor, while continuing to provide technological support and products.
Negotiations between SAIC and JSW over the sale of the Chinese firm’s stake are ongoing, with disagreements over valuation.
JSW has expressed interest in becoming the majority shareholder, but the two parties have yet to reach a consensus on the price.
The partnership dynamics have been further complicated by JSW’s engagement with Chery Automobile, a competitor Chinese automaker, for a potential technology collaboration.
JSW’s move has created friction with SAIC, the sources said.
In July 2025, Chery agreed to supply technology and components to JSW Group to facilitate the launch of a new-energy vehicle brand in India by 2027.
India has been attracting investment from international players such as Suzuki Motor as it plans to invest over Rs700bn ($8bn) in its Indian operations over the next five to six years.
SAIC ventured into the Indian market in 2019 with its MG Motor brand, taking over a former General Motors facility in the state of Gujarat.
Despite plans and a significant proposed investment, the company has faced setbacks, including the rejection of an investment proposal for EVs under a government scheme.
SAIC Motor reported a 5.2% increase in global revenues to $42bn in the first half of 2025, reflecting a 12.4% year-on-year rise in global vehicle deliveries to 2.053 million units.
