(Yicai) Dec. 1 -- Indian steelmaker JSW Group will become a strategic investor of Chinese auto giant SAIC Motor’s affiliated business in India after purchasing a 35 percent stake.

SAIC and JSW will jointly leverage their resources-related advantages in the automotive, steel, energy, and other sectors to ensure that MG Motor India can achieve sustainable development, the Shanghai-based firm announced yesterday, citing a strategic cooperation agreement the pair recently signed in London.

The deal still pends on approval from the local government, SAIC noted.

The two companies will also cooperate to launch intelligently connected electric and fuel-powered vehicles to boost the transformation and growth of MG Motor India, said Parth Jindal, the executive in charge of JSW’s strategic projects.

In 2017, SAIC invested around CNY3.3 billion (USD459.1 million) to set up MG Motor India, which has a production base and an industrial park for suppliers. MG Motor India launched its first car model, the MG Hector, in 2019. The model’s sales reached 48,000 units last year and 52,000 units in the first 10 months of this year, ranking eighth in the Indian automotive market and second in the country’s new energy vehicle market segment.

In addition to India, SAIC has entered markets in 100 other nations and regions.

JSW is a conglomerate with businesses in the steel, energy, infrastructure, cement, paints, venture capital, and sports industries. It operates in over 140 countries.

Editor: Futura Costaglione