China’s Chery Automobile and India’s JSW Group have entered into an agreement for the transfer of technology and components to facilitate the launch of a new-energy vehicle brand in India by 2027, as reported by Bloomberg.
Under the terms of the agreement, Chery will receive a one-time technology transfer payment fee and ongoing royalties from JSW, owned by Sajjan Jindal.
The collaboration excludes any equity arrangement, in compliance with India’s investment restrictions on Chinese firms in strategic sectors.
This deal marks a significant milestone as the first passenger vehicle technology transfer from China to India since the 2020 border conflicts that strained bilateral relations and imposed investment barriers.
Chery and JSW have disputed the reported details, clarifying that the agreement primarily involves component supply rather than technology transfer.
Chery’s expertise in electric cars, hybrids, and automotive technologies such as electric powertrains, hybrid systems, and intelligent cockpit technology will be instrumental for JSW’s rapid localization and production scaling objectives.
JSW is currently evaluating various Chery models, with a focus on the iCar sport utility range, for adaptation to the Indian market.
The new EV brand, fully owned by JSW, will operate independently from its existing MG Motor India joint venture with China’s SAIC Motor, which will continue to market vehicles under the MG brand in India.
JSW’s royalty payments to Chery will contribute to the latter’s revenue and support its global expansion strategies, including the construction of a $1 billion factory in Turkey.
JSW is also in the process of establishing facilities in Maharashtra state, India, to manufacture its own line of passenger EVs starting in 2027, and plans to introduce electric trucks and buses as early as next year.
Furthermore, JSW intends to increase its stake in the MG Motor JV by acquiring additional shares from SAIC, as disclosed by JSW MG Motor India director Parth Jindal in a local Indian newspaper earlier this month.
In May, Bloomberg News reported that Chery is contemplating a Hong Kong initial public offering to raise approximately $1.5 billion, according to sources familiar with the matter.
Recently, Chery confirmed its entry into the UK new car market under its own brand, scheduled for this summer.
