According to Bloomberg News， Chery Automobile is reportedly set to provide technical and component support to India’s JSW Group， assisting them in launching their own new energy vehicle (NEV) brand by 2027. This collaboration signifies a strategic move for both companies， aiming to leverage Chery’s established expertise in Chinese NEV development and JSW’s growing presence in the Indian automotive market.
Sources suggest that JSW will make a one-time payment for technology transfer to Chery， alongside ongoing royalty fees. This financial arrangement highlights the transfer of intellectual property and manufacturing know-how. The new NEV brand will be wholly owned by JSW and will operate independently from their existing joint venture with SAIC Motor and General Motors (operating as MG Motor India). This distinction ensures a clear separation and brand identity for JSW’s independent NEV venture.
Crucially， this partnership does not involve any equity stake， a decision that aligns with India’s existing policies regarding foreign investment in strategic sectors， particularly from China. This approach allows for technological collaboration without raising concerns about ownership control.
In response to the report， both Chery and JSW have issued statements clarifying certain aspects of the agreement. They emphasized that the Bloomberg report was not entirely accurate and that the primary focus of the collaboration centers on component supply. Chery stated that it would provide components for select models， which JSW would then assemble and produce in India under the JSW brand. This phrasing suggests a more focused supplier-manufacturer relationship， at least from Chery’s perspective.
JSW， in its official response， further elaborated that core technology development will be an in-house effort， with the company partnering with other entities such as KPIT Technologies Ltd. and LTIMindtree Ltd. This indicates that while Chery may be supplying components and potentially some foundational design elements， JSW intends to build its own technological capabilities for its future NEV brand， fostering domestic innovation and self-sufficiency.
