China’s largest carmaker SAIC Motors’ India entry has been confirmed, will begin its India innings with the iconic MG brand.
SAIC intends to sell its brand of cars with an MG badge and the first car is expected to roll out in 2019. There is a possibility that SAIC could also tap into the product portfolio of certain joint venture brands like Baojun. The company’s Indian subsidiary is registered as MG Motor India and is being headed by former General Motors India CEO Rajeev Chaba and has also appointed P Balendran (another GM India veteran) as Executive Director.
MG Motor India has a wide range of cars with body styles to choose from including hatchbacks, sedans, MPVs, SUVs and even electric cars. However, it is the SUVs that SAIC will be focusing on initially, given the level of demand that exists for SUVs in India.
As for the manufacturing plant, the automaker is in talks with General Motors to acquire the currently shut Halol plant in Gujarat. SAIC is yet to sign a formal agreement to acquire the plant. The Competition Commission of India too has cleared the proposed acquisition earlier this year.
This deal is however subject to General Motors’ submission of all government approvals, labour dues settlements and other pending issues. SAIC will be investing over Rs. 3000 crores in the first phase of its investment, once the plant’s location is finalised.
SAIC India Entry
– SAIC will begin its India innings with the iconic British marque, the MG brand
– The plan is to sell all SAIC products in India with an MG badge
– SAIC is in talks with General Motors to acquire the currently shut Halol plant in Gujarat