Though MG Motor turned out to be a very successful car manufacturer in India, the Chinese automaker SAIC is now reportedly looking forward to selling a majority stake of MG Motor to Indian companies.
It is also been reported that the Chinese auto giant is in the advanced stages related to the equity sale of MG Motor to an Indian company. Furthermore, many Indian companies are very keen to jump on this opportunity.
It is also worth mentioning that companies such as Reliance Industries, Hero Group, Premji Invest, and JSW Group are also very keen on purchasing the majority stake in MG Motor.
Furthermore, it is also reported that the Chinese automaker is looking forward to closing the MG Motor deal by the end of this year. A hint was also slipped by MG Motor India CEO Rajeev Chaba while talking to the media by saying that the company wants to “Indianise operation”.
In addition to that, Chaba went on to say that the company intends to Indianise its shareholding, company’s board, management, and supply chain in the next 2 to 4 years.
At present, MG Motor has one manufacturing plant in Halol, Gujarat with an annual capacity of 1.2 lakh units per year. While this facility was purchased from General Motors, the company is now looking forward to expanding its operation by setting up a second facility in Halol.
With the proposed new manufacturing facility in Halol, MG Motor is planning to increase its total production capacity to 3 lakh units per year. Furthermore, the automaker is shifting its focus to EVs and goes on to claim that 70 per cent of its sales will be from EVs.
That being said, Reliance Industries is among the biggest multinational conglomerate in India. Given the expansion plans of the Mukesh Ambani-backed company, it would not be surprising if Reliance Industries venture into the automobile sector by purchasing the majority stake in MG Motor.
Thoughts: If Mukesh Ambani manages to purchase the majority stake in MG Motor, we expect to see aggressive expansion plans from the company to dominate the Indian automobile sector in the future. This may include heavy investment in EV technology and aggressive car purchase plans for its customers.
