India's JSW in talks: Chinese automaker’s license for EV tech

Indian conglomerate JSW Group is in early talks with Chinese automaker Leapmotor to license technology to build electric vehicles (EVs) under its own brand name in India, according to sources of Reuters.

JSW is likely to use a single platform on which it can build at least three mid-sized sport-utility vehicles (SUVs), and Leapmotor will also engineer the cars, reported Reuters.

One of the sources said that JSW needs the technology more than an investment or joint venture in an existing carmaker, adding that the Indian company had been in talks with a few other Chinese automakers as well.

Established in 2015, Leapmotor leverages its proprietary technologies to manufacture EVs.

JSW was also reported looking to buy a stake in MG Motor India, owned by China's SAIC Motor, as well as acquire Ford Motor’s southern India plant where it stopped production.

The Indian government has been toughening rules for foreign investment from bordering countries. A deal with JSW would be an opportunity for Leapmotor to earn revenues from the Indian market, one of the Reuters’ sources said. This has also forced MG Motor India to find local investors like JSW so it can raise equity.