India's JSW, China's Chery Partner to Launch EV Brand by 2027

JSW Group, led by Sajjan Jindal, is set to launch a new independent electric vehicle (EV) brand in India by 2027, leveraging technology and component support from China's Chery Automobile. The partnership involves JSW paying a one-time technology transfer fee and ongoing royalties to Chery, but no equity stake is involved, aligning with India's restrictions on Chinese investments in strategic sectors. While initial reports emphasized technology licensing, both JSW and Chery clarified that the arrangement primarily concerns component supply, with JSW developing core technology in-house alongside Indian firms like KPIT Technologies and LTIMindtree. This collaboration marks the first major passenger vehicle technology transfer from China to India since the 2020 border clashes, highlighting a cautious yet significant step in India's EV sector amid ongoing geopolitical sensitivities. JSW is also planning to build a large manufacturing facility in Maharashtra with significant production capacity and aims to expand its stake in its existing joint venture with China's SAIC Motor, which sells vehicles under the MG brand. The move reflects JSW's broader strategy to strengthen its position in India's growing EV market while navigating complex regulatory and diplomatic landscapes.