India: JSW Group turns to Chery to build own EV brand
According to a new Bloomberg report, JSW Group plans to license Chery’s EV technology through an upfront licensing fee followed by royalty payments. In light of India’s curbs on Chinese capital in key sectors, the company does not plan to offer a stake in its upcoming EV venture.
Chery rejected the Bloomberg report, stating it “will supply components of parts of models.” JSW Group also downplayed Chery’s role in the upcoming EV venture, indicating the Chinese automaker will be nothing more than a component supplier. It said “the core technology will be developed in-house with the help of companies,” such as India’s own KPIT Technologies and LTIMindtree.
JSW Group is examining several Chery models, especially the SUVs under the iCar (iCaur) brand. Chery markets its cars under Chery, Exeed, Luxeed, Jetour, Omoda, and Lepas brands as well. JSW Group plans to build India’s largest EV manufacturing facility with an annual production capacity of 300,000 passenger cars and 100,000 commercial vehicles in Maharashtra, the same state in which Tesla recently opened its first showroom in the country.
Should JSW Group succeed in striking a deal with Chery, it would mark the first time an Indian company has formed such a tie-up with a Chinese automaker for passenger vehicle technology since the Galwan Valley Clash in 2020, which significantly strained political and business ties between the two countries. Established domestic players like Tata Motors and Mahindra & Mahindra are already heavily reliant on Chinese suppliers for their EVs, especially when it comes to battery cells.
JSW Group, known primarily for its steel business, is already present in the automotive sector. In March 2024, the company entered into a partnership with Chinese SAIC Motor and formed a joint venture company called JSW MG Motor India. The company owns a 35% stake in the alliance, which sells cars under SAIC Motor’s MG brand.
According to a recent report from The Economic Times, JSW Group plans to increase its shareholding in JSW MG Motor India to more than 50%. The same article also said that the company will initiate its independent journey in the EV segment with trucks and buses in early 2026, followed by passenger cars in the first half of 2027.
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