Indian conglomerate JSW Group is preparing to debut a new electric vehicle (EV) brand by 2027 and is in talks with China’s Chery Automobile for technology support, though both firms stress the collaboration will be limited to component supply, amid regulatory sensitivities over Chinese investment.
According to a Bloomberg report, JSW plans to license EV technology from Chery through an upfront fee and ongoing royalties, without offering equity participation in the new EV venture. The move comes as India maintains strict curbs on Chinese capital inflows into key sectors following the 2020 border clash in Galwan Valley.
Chery, however, denied any broad technology transfer. A company spokesperson told Bloomberg the automaker “will supply components of parts of models,” without taking an ownership stake or providing full vehicle platforms. JSW Group similarly clarified that Chery’s involvement will be minimal.
“The core technology will be developed in-house with the help of companies,” a JSW spokesperson said, citing Indian technology partners like KPIT Technologies and LTIMindtree.
JSW is reportedly evaluating several Chery models, particularly SUVs under the iCar (iCaur) brand, and intends to set up India’s largest EV manufacturing plant in Maharashtra with an annual capacity of 300,000 passenger cars and 100,000 commercial vehicles.
If finalized, the Chery tie-up would be the first such arrangement between an Indian company and a Chinese automaker for passenger EV technology since bilateral ties deteriorated in 2020. Despite political tensions, Indian EV makers including Tata Motors and Mahindra & Mahindra continue to source battery components from Chinese suppliers.
JSW, primarily known for its steel business, already holds a 35% stake in JSW MG Motor India, a joint venture formed in March 2024 with China’s SAIC Motor. The company now aims to raise its shareholding to over 50%, according to The Economic Times, and plans to enter the commercial EV segment in early 2026, followed by passenger vehicles in the first half of 2027.