China’s Chery Automobile will supply technology and components to India’s JSW Group to support the launch of a new electric vehicle brand by 2027, according to people familiar with the matter. Under the agreement, JSW will pay a one-time technology transfer fee along with ongoing royalty payments. There will be no equity partnership between the two companies, in line with India’s restrictions on Chinese investment in strategic sectors.
This collaboration marks the first major transfer of passenger vehicle technology from a Chinese company to an Indian firm since the 2020 border tensions between the two countries, which led India to tighten investment rules.
Chery and JSW, however, clarified the nature of the partnership, stating it is focused on component supply. “Chery will supply components of parts of models. JSW will assemble and produce under the JSW brand in India,” said Chery in an email. JSW also confirmed that “the core technology will be developed in-house with the help of companies” like KPIT Technologies and LTIMindtree.
India’s electric vehicle ecosystem continues to rely heavily on Chinese supply chains, including lithium-ion cells and rare earth materials. While China is cautious about exporting critical technologies in sectors like EVs and semiconductors, Indian firms such as Exide Industries, Amara Raja, and Tata AutoComp have already entered licensing deals with Chinese battery makers.
Chery, China’s top car exporter for 22 years and the country’s fourth-largest carmaker, operates in over 100 countries and has a joint venture with Jaguar Land Rover, which is owned by an Indian automotive group. The company is reportedly preparing for a Hong Kong IPO to raise around 1.5 billion dollars but faces challenges due to its operations in Russia. Revenue from JSW will support its global ambitions, including a planned one billion dollar factory in Turkey.
Chery’s EV lineup includes brands like iCar, Exeed, and Jetour. JSW is exploring several models from the iCar range to adapt for Indian customers. The new EV brand, fully owned by JSW, will run independently from its MG Motor India joint venture with China’s SAIC Motor. JSW is also planning to expand its stake in MG Motor.
JSW is building manufacturing units in Maharashtra to produce electric cars by 2027 and electric trucks and buses starting next year. The group has reportedly finalized two additional licensing deals with Chinese automakers.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream formerly known as CIO News LinkedIn Account | The Mainstream formerly known as CIO News Facebook | The Mainstream formerly known as CIO News Youtube | The Mainstream formerly known as CIO News Twitter |The Mainstream formerly known as CIO News Whatsapp Channel | The Mainstream formerly known as CIO News Instagram
About us:
The Mainstream formerly known as CIO News is a premier platform dedicated to delivering latest news, updates, and insights from the tech industry. With its strong foundation of intellectual property and thought leadership, the platform is well-positioned to stay ahead of the curve and lead conversations about how technology shapes our world. From its early days as CIO News to its rebranding as The Mainstream on November 28, 2024, it has been expanding its global reach, targeting key markets in the Middle East & Africa, ASEAN, the USA, and the UK. The Mainstream is a vision to put technology at the center of every conversation, inspiring professionals and organizations to embrace the future of tech.
