MG Motor could be looking to sell a major chunk of its stakes in its Indian operations to credible investors as Reliance and Hero are said to be in the running
According to a recent report that emerged on the internet, MG Motor could be looking to sell a major chunk of its stakes in its Indian operations to high-profile local investors. The SAIC-owned company is said to be in an advanced negotiation stage for equity sale with Reliance Industries, Hero Group, JSW Group and Premji Invest.
The report further noted that the British manufacturer, which is nearly a century old, needs immediate funds to kick start its next phase of transformation in India. While the brand has responded by dismissing the speculations, the India-China border tensions and increasing hindrance for Chinese or Chinese-owned companies to bring in new investments have also been cited for seeking new local investors.
MG is reportedly awaiting approval from the government for around two years to raise funds from SAIC. With no positive outcome yet, the company is looking into other possibilities. MG recently introduced the smallest passenger car in India, the Comet EV. It carries an introductory starting price of Rs. 7.98 lakh (ex-showroom) and it rivals Tata Tiago EV and Citroen eC3.
Currently, MG retails the Hector, ZS EV, Astor and Gloster in India along with the Comet. A new press release from MG Motor India announced the intentions to launch four to five new vehicles (with most of them being electric vehicles). The five-year business roadmap has ‘Indianizing operations’ as a key focus as the majority will be owned by Indians in two to four years.
MG aims to make a meaningful impact on society through greater localisation and the latest technology as the next phase of expansion will see the second plant in Gujarat boosting the combined production capacity to three lakh units annually. The EV Portfolio is predicted to contribute up to 65 to 75 per cent of total sales in India.
It will invest over Rs. 5,000 crore to enhance local sourcing and manufacturing across its operations by 2028 through an extensive series of programs including exploring cell manufacturing and clean hydrogen-cell technology through owned or third-party facilities. It will also establish a battery assembly unit in Gujarat.