July 25, 2025

China’s Chery Automobile Co. will provide technology and components to billionaire Sajjan Jindal’s JSW Group to assist in the launch of a new-energy vehicle brand in India by 2027. The agreement involves a one-time technology transfer fee and recurring royalties. This collaboration signifies a significant transfer of passenger vehicle technology from a Chinese automaker to an Indian entity post the 2020 border disputes. In response to Bloomberg News, both Chery and JSW clarified that the pact primarily focuses on supplying components rather than equity arrangements. JSW emphasized the development of core technology in-house with the support of companies like KPIT Technologies Ltd. and LTIMindtree Ltd. India’s electric vehicle (EV) ecosystem heavily relies on Chinese supply chains, including rare earth magnets and lithium-ion cells. While China regulates the overseas transfer of technologies in critical sectors like EVs and semiconductors, Indian companies such as Exide Industries Ltd., Amara Raja, and Tata AutoComp Systems Ltd. have partnerships with Chinese firms like SVOLT Energy Technology Co. and Gotion High-tech Co. Chery, a leading Chinese passenger vehicle exporter with a joint venture with Jaguar Land Rover, is exploring a potential $1.5 billion Hong Kong initial public offering. Despite facing challenges in its Russian operations and restrictions on sales to sanctioned countries, Chery anticipates a boost in revenues through the royalty stream from JSW. The partnership aligns with Chery’s international ambitions, including a planned $1 billion factory in Turkey. Chery’s diverse portfolio covers electric cars and hybrids under brands like iCar, Exeed, and Jetour. Its advanced electric powertrains and hybrid systems, combined with intelligent cockpit technology, will aid JSW in localizing and scaling production swiftly. JSW is evaluating various Chery models, particularly from the iCar sport utility range, to customize for the Indian market. The conglomerate, known for its presence in steel, new energy, infrastructure, and paints, is venturing into sectors like cement and automobiles. The new EV brand, fully owned by JSW, is set to operate independently from its existing joint venture with China’s SAIC Motor Corp. The group is establishing manufacturing facilities in Maharashtra to produce passenger EVs from 2027, along with electric trucks and buses starting next year. Furthermore, JSW plans to enhance its stake in the MG Motor joint venture by acquiring more of SAIC’s shares. Parth Jindal, director of JSW MG Motor India, confirmed the conglomerate's two licensing agreements with Chinese automakers as part of its expansion strategy.

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Tags: China, India, Automobile, Electric vehicles, Technology, Partnership,