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Consulting · Automotive Manufacturing · 2023

India-China Automotive JV Structuring

USD 180M joint venture signed; operational in 8 months.

Confidential — Automotive Tier-1 Supplier

Key Metrics

USD 180M

JV valuation at signing

8

Months from engagement to signing

14

Negotiation sessions led

6

Months to full operations

Challenge

An Indian Tier-1 automotive supplier sought to establish a manufacturing joint venture with a Chinese partner to supply the rapidly growing EV segment in both markets. The client had identified a prospective partner in Guangdong but lacked the bilateral expertise to structure the JV, negotiate governance terms, and navigate Chinese foreign investment regulations.

Solution

We led the full JV structuring process — starting with a detailed due diligence report on the proposed Chinese partner, followed by a governance structure recommendation that balanced operational control with Chinese regulatory requirements. Our team served as the primary negotiation interface, conducting all sessions in Mandarin and providing real-time strategic guidance to the client's CFO and legal team across 14 negotiation sessions.

Results

The JV agreement was signed within 8 months of engagement — well within the client's 12-month target. The structure we designed gave the Indian parent effective operational control while satisfying Chinese foreign investment approval requirements. The JV became operational within 6 months of signing and secured its first OEM contract within the first year.

Work Breakdown

Phase 1

Partner Due Diligence

Comprehensive financial, operational, and reputational due diligence on the proposed Chinese JV partner.

Phase 2

Governance Design

JV governance structure designed to balance control and compliance across both jurisdictions.

Phase 3

Negotiation Facilitation

End-to-end negotiation management across 14 sessions, conducted entirely in Mandarin and English.

Phase 4

Regulatory Approval

Navigation of SAMR and MOFCOM approval processes with dedicated Beijing counsel.

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