JSW to launch its own EV brand, partners with Chinese company for EV components

To enter the expanding Indian EV market, the Jindal Iron and Steel (JSW) Group is planning to venture with a Chinese company, Chery Automobile. Under the partnership, Chery Automobile will supply important EV components and technologies to JSW, Economic Times has reported. 

Taking India’s restriction on Chinese investments into account, Chery will not hold any equity in the company. However, under the agreement, the Chinese company will receive a one-time technology transfer fee and a regular royalty, the report added. 

The update marks the first significant transfer of passenger vehicle technology from a Chinese automaker to an Indian company following the 2020 Galwan Valley standoff. 

Automobile components and their technology will be supplied by Chery to JSW, which will manufacture and market them under its own name and brand. According to The Economic Times, JSW stated that the fundamental technology would be developed domestically with assistance from companies such as KPIT Technologies and LTIMindtree.

JSW will own all of its future EV brand and run it separately from its current joint venture with SAIC Motor, a Chinese corporation that sells automobiles under the MG brand. To launch its new EV lineup in 2027 and commercial electric trucks and buses as early as 2026, JSW is also establishing manufacturing facilities in Maharashtra.

With exports to more than 100 countries and a significant worldwide footprint, Chery Automobile is considering a $1.5 billion initial public offering (IPO) in Hong Kong. Its profits from the JSW cooperation could be used to finance international expansion, including the construction of a $1 billion facility in Turkey, according to the news article.