Chery and JSW Group Partner to Launch New EV Brand Made in India with Global Market Ambitions
In a major move set to reshape India’s electric vehicle (EV) landscape, India’s JSW Group is collaborating with China’s Chery Automobile to launch an all-new EV brand by 2027, according to a report by Bloomberg.
Chery will provide technology and components to support JSW’s upcoming electric vehicle range, with the agreement including a one-time technology transfer fee and ongoing royalty payments. However, the deal avoids any equity partnership, adhering strictly to India’s FDI restrictions on Chinese investment in sensitive sectors.
First Major China-India Auto Tech Transfer Since 2020 Tensions
This agreement marks a landmark passenger vehicle technology transfer between China and India—the first since the 2020 border conflict, which led to tighter scrutiny of Chinese investments in Indian strategic industries.
While both companies have stated that the deal focuses mainly on component supply, insiders suggest the collaboration could go deeper, especially as JSW evaluates Chery’s iCar SUV lineup for the Indian market.
Chery Brings Cutting-Edge EV and Hybrid Expertise
Chery’s expertise in electric powertrains, hybrid systems, and intelligent cockpit technology is expected to play a pivotal role in helping JSW localize and scale its EV production rapidly. This is a critical advantage as the Indian conglomerate prepares to build its own passenger EV manufacturing facilities in Maharashtra, targeted for completion by 2027.
In addition, JSW plans to launch electric trucks and buses as early as 2026, signaling broader ambitions across the EV spectrum.
JSW’s Dual EV Strategy: A New Brand + MG JV
Interestingly, this new EV venture will operate independently of JSW’s existing joint venture with SAIC Motor under the MG brand, which will continue to serve Indian consumers through its established dealership network.
At the same time, JSW is looking to increase its stake in MG Motor India by acquiring additional equity from SAIC, a move confirmed by Parth Jindal, Director of JSW MG Motor India, in a recent interview.
Chery Eyes Global Expansion Amid India Deal
From Chery’s perspective, royalties from JSW will boost its revenue and support its international expansion, including a $1 billion EV manufacturing plant in Turkey. The company is also preparing for a $1.5 billion IPO in Hong Kong, and has announced its official entry into the UK car market this summer.
What This Means for India’s EV Industry
With this technology-backed entry, JSW is positioning itself as a major homegrown EV player, combining domestic manufacturing with global innovation. The Chery partnership could accelerate India’s push toward advanced, high-performance electric vehicles, while also strengthening the ecosystem for electric SUVs, commercial EVs, and next-gen automotive tech.
As India aims to become a global EV hub, this strategic tech partnership without equity involvement sets a new template for future international collaborations under tightened regulatory frameworks.
