Chen Hong, the chairman of China’s largest automaker, expressed the company’s active pursuit of various avenues for expansion in the Indian market and its focus on benefiting Indian consumers. Speaking to select Indian media during the IAA Mobility 2023 event in Munich, Hong stated that they are considering all possibilities and their primary concern is how to enhance the experience for Indian customers.
MG Motor has already invested more than Rs 5,000 crore in its Indian operations since its entry into the market five years ago. The company is eager to commence its second phase of investment in India. However, their Foreign Direct Investment (FDI) proposal has been pending with the Indian government for a couple of years, partly due to geopolitical tensions at the India-China border. While not commenting on the geopolitical situation, the company is actively exploring potential partners, and multiple proposals for the project are under consideration.
MG Motor has been in discussions with the JSW Group for several quarters and has also explored the possibility of selling stakes to companies like Reliance in the past. It is reported that senior management from SAIC and Sajjan Jindal, chairman of the JSW Group, were present at the IAA Mobility Show in Munich, suggesting ongoing discussions regarding the project. Reports about a potential deal between MG Motor and JSW Group were previously disclosed by Autocar Professional in April.
In May of the current year, MG Motor India’s CEO Emeritus, Rajeev Chaba, announced plans to localize the company’s operations and divest a majority stake to local partners, aiming to raise over Rs 5,000 crore. Chaba outlined the company’s long-term plan until 2028, which includes partnering with a local entity to bring about changes in ownership, board structure, manufacturing footprint, and supply chain localization. The company also plans to expand its portfolio with more electric vehicles and assemble batteries at the factory after securing funding.
MG Motor entered the Indian market in September 2017 by acquiring General Motors India’s Halol plant. While it has been manufacturing vehicles for the past four to five years, the age of the factory limits its production capacity. Therefore, MG Motor has been actively exploring the establishment of a second plant in India for a couple of years.