US private equity group KKR is in discussions with the shareholders of JSW MG Motor India regarding an investment of up to US$ 400 million in the three-year-old joint venture, according to people familiar with the matter.

The proposed investment is aimed at capitalising on the growing demand for electric vehicles in India, which has experienced a sharp increase this year following the commencement of the Iran conflict. The potential transaction comes at a time when electric vehicle adoption in the country is accelerating, attracting increased interest from both automakers and financial investors.

The investment is understood to comprise a combination of a primary equity infusion into the company to support its growth plans and a secondary share sale involving a reduction in the stake held by the Chinese shareholder in the venture, automaker SAIC Motor. The company is seeking a valuation of US$ 3 billion, representing a 100% increase since the joint venture was established.

If completed, this would represent the first external equity fundraising round for India's third-largest electric passenger car manufacturer since the Sajjan Jindal-led JSW Group formed a US$ 1.5 billion joint venture with SAIC-owned MG Motor India in March 2024. It would also mark the second instance of global institutional capital backing an Indian electric vehicle company, following the US$ 1 billion equity infusion by TPG and Mubadala into Tata Group's Indian EV business in 2021.

The potential investment reflects growing investor interest in India's electric vehicle sector, which has been expanding rapidly amid rising consumer demand, increasing model availability and a broader industry shift towards electrification.

However, the people cited above indicated that there is no certainty that the ongoing negotiations will result in a transaction. Over the past decade, KKR and JSW have engaged on several occasions to finance various initiatives of the US$ 23 billion conglomerate through both equity and structured credit.

A spokesperson for JSW MG Motor declined to comment on market speculation. KKR was unavailable for comment, while SAIC could not be reached. In May 2026, media sources reported that SAIC would sell a 10% stake from its 49% holding in the venture. JSW Group owns 35%, while Indian financial institutions, dealers and employees collectively hold the remaining 16%, making the company majority Indian-owned.

In July 2025, JSW Group Director Parth Jindal told media sources that the group planned to increase its stake in JSW MG Motor in phases, as Chinese partner SAIC was unwilling to commit additional capital to the Indian venture, choosing instead to prioritise investments in its domestic market and Europe. The proposed transactions would make JSW the largest shareholder in the company, although Jindal did not specify the size of the additional stake.

Search for capital

The company had initiated a US$ 350 million capital-raising plan, media sources reported in April, following a financial turnaround and the strong performance of the Windsor EV, a crossover utility vehicle that displaced the Tata Nexon EV as the country's best-selling electric vehicle within a year of its launch. Although no transaction materialised at that stage, the recent surge in demand for electric vehicles has renewed investor interest.

Driven by the success of the Windsor EV, JSW MG Motor India strengthened its position as the country's second-largest electric vehicle manufacturer by volume after Tata Motors. The introduction of the Battery-as-a-Service (BaaS) programme in September 2024 also contributed to higher sales. The programme enables consumers to lease batteries, thereby reducing the upfront cost of EV ownership and encouraging adoption. Under the BaaS scheme, customers were charged Rs. 3.5 per km, subject to a minimum monthly usage fee, addressing affordability concerns associated with electric vehicles.

The company surpassed the US$ 1 billion revenue mark in FY25, equivalent to approximately Rs. 84.5 billion (US$ 889.7 million) at an exchange rate of Rs. 84.5 per US dollar. However, net losses widened to Rs. 109.6 million due to expansion and electrification-related costs. In FY24, the company reported its first-ever operating profit of Rs. 291,000.

Competition within India's electric vehicle market has intensified significantly. In April 2026, the company lost its position as the second-largest EV manufacturer to Mahindra & Mahindra. Established manufacturers, including Maruti Suzuki and Hyundai, as well as new entrants such as VinFast, have been introducing a range of mass-market electric vehicle offerings. Industry observers noted that, by comparison, the lack of significant new product launches has affected JSW MG Motor's sales performance in recent quarters. Its market share during the first two months of FY27 declined to 19.8% from 29.8% during the corresponding period a year earlier. In contrast, Mahindra & Mahindra's market share increased to 22.8% from 21%.

Accelerated launches

To address plateauing sales and strengthen its position in the evolving new-energy vehicle market, the company has announced plans to expand its product portfolio, with three to four new launches scheduled for calendar year (CY) 2026, including a plug-in hybrid electric vehicle (PHEV). The company currently offers three internal combustion engine (ICE) sport utility vehicles and five electric vehicles, ranging from the Comet microcar to the premium Cyberster roadster. These plans coincide with an investment programme of nearly Rs. 370 million over the next two years, covering plant expansion, new product introductions and other capital expenditure requirements.

The existing Halol plant in Gujarat is scheduled to be expanded in phases. A second greenfield facility is also being planned in Gujarat, near the existing plant. The company expects new energy vehicles (NEVs), including both EVs and hybrids, to account for nearly two-thirds of its total passenger vehicle sales in India by CY30. Its board has also approved plans to increase localisation levels to 70% across both its ICE and EV product ranges.

Anurag Mehrotra, Managing Director of JSW MG Motor India, told media sources in February that the company was evaluating multiple financing options to raise capital. He added that operational funding had thus far been supported through internal accruals, but external capital would be sought as development of the second manufacturing facility gathered pace later in the year.

Electric vehicle sales in India have been growing rapidly, recording strong double-digit growth since the beginning of the calendar year. The share of electric vehicles in the overall passenger vehicle market reached a record 6.6% in May, while sales increased by 81% year-on-year, according to the Federation of Automobile Dealers Associations.

The broader growth of the EV market is also encouraging further investment and product development across the industry. JSW Group has continued to strengthen its automotive ambitions. Separately from the MG joint venture, the group is developing its own passenger vehicle business under the JSW Motors brand and expects to launch its first model, a plug-in hybrid SUV based on Chery Holding Group's Jetour T2, during the forthcoming festive season. Electric vehicles based on the Jaecoo J5 and iCar V23 platforms are also under development.