The move by MG, a British car brand owned by Chinese auto giant SAIC, aims to ease regulation in India as the company struggles to get approvals for new investments from its parent company due to restrictions stemming from tensions in Indochina. By bringing on well-heeled and trusted local partners, the company aims to enter the next phase of growth, which will require an investment of Rs. 5,000 crore to set up a factory in Gujarat and launch new cars – most of which will be electric.
“Hectic talks are ongoing with the Indian companies and MG Motor is looking to finalize a deal by the end of this year,” said one of the sources, adding that the talks are at an “advanced stage,” especially as MG has money “almost immediately.” needs ” to initiate the next expansion phase. “Negotiations are ongoing and MG management is committed to finding a credible partner while maintaining attractive valuations.”
MG Motor India called questions surrounding the talks with Reliance, Hero Group, Premji Invest and JSW “speculative”. Detailed questionnaires sent individually to the Indian companies remained unanswered at the time of going to press.
Rajeev Chaba, CEO of MG Motor India, declined to answer questions about potential applicants and interviews with them. However, he said the company is planning an aggressive investment plan as part of a five-year business roadmap. “Through this, the company will invest Rs 5,000 million by 2028, increase production from 1.2 lakh units per year to 3 lakh units, break in four to five new cars, work on battery assembly units at the Gujarat plant and cell manufacturing and hydrogen fuel cell technologies explore through joint ventures and third party manufacturing.”
The company, which sells models like the Hector and Gloster SUVs, and ZS and Comet electric vehicles, also wants to push the localization of its products while planning to increase employment by about 20,000 (direct and indirect) by 2028.