US private equity major KKR is in advanced discussions with shareholders of JSW MG Motor India to invest up to $400 million in the joint venture, according to people familiar with the matter. The deal aims to capitalise on the surging demand for electric vehicles in India.
The proposed investment would combine a primary equity infusion to support the company’s expansion plans and a secondary share sale, including a potential sell-down by the Chinese partner SAIC Motor. The transaction is being discussed at a valuation of around $3 billion (approximately Rs 28,380 crore), effectively doubling the valuation of the JV in roughly three years since its formation.
If the deal materialises, it would mark the first major external equity raise for JSW MG Motor India since the Sajjan Jindal-led JSW Group forged the partnership with SAIC-owned MG Motor India in March 2024. It would also represent one of the largest global institutional bets on India’s EV sector after TPG and Mubadala’s investment in Tata’s EV business.
The move aligns with JSW’s strategy to consolidate control. JSW currently holds a 35% stake, while Indian financial institutions, dealers, and employees own about 16%, giving Indian entities majority ownership. SAIC holds 49%. Earlier reports indicated SAIC’s willingness to sell a further 10% stake to JSW, which would already position the Jindal group as the single-largest shareholder.
In July 2025, JSW Group Director Parth Jindal had indicated plans to increase the group’s stake in tranches, noting SAIC’s reluctance to commit more capital to India as it focused on its home market and Europe.
JSW MG Motor India has seen strong EV momentum, driven by models like the Windsor EV. The company reported a 73% jump in EV volumes in FY26, selling over 53,000 electric units and solidifying its position as one of India’s top EV passenger car makers (third-largest overall in the segment). It crossed the $1 billion revenue mark earlier, though it continues to invest heavily in expansion amid rising competition from Tata Motors, Mahindra & Mahindra, and others.
The company is accelerating product launches, with three to four new models planned for 2026, including a plug-in hybrid (PHEV). It operates a plant in Halol, Gujarat (current capacity ~1.2 lakh units annually), and aims to scale to 3 lakh units with a new greenfield facility. New energy vehicles (EVs and hybrids) are targeted to make up nearly two-thirds of sales by 2030, supported by higher localisation targets of 70%.
The $400 million raise would help fund these ambitions, including plant expansion and new product development. The company had explored a ~$350 million capital raise earlier in 2026, but the recent EV demand boom—fueled by policy support and market dynamics—has renewed investor interest.
KKR has a longstanding relationship with the JSW Group across equity and credit deals. A JSW MG Motor spokesperson declined to comment on the speculative reports, while KKR and SAIC did not respond immediately.
JSW is also developing its independent JSW Motors brand, with launches expected later in 2026, including plug-in hybrids and EVs based on international platforms. This dual-track approach underscores the group’s long-term ambitions in India’s auto sector.
Negotiations are ongoing, and there is no certainty of a final deal. However, a successful transaction would significantly boost JSW MG Motor India’s growth plans and further Indianise its ownership in a strategically sensitive sector.
