MG’s Owner SAIC Among 7 Chinese Brands That Could Face Action In India

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These seven companies are found by Indian Intelligence sources to have connections with People’s Liberation Army (PLA) of China

The border tensions between India and China are on an all time high and both the countries are taking each other out in economic and political ways since the outbreak of the global health crisis has wreaked havoc on the business prospects of the latter and is under tremendous pressure. Indian government did shock the public by banning 59 Chinese applications including the immensely popular TikTok, UC Browser and file sharing app ShareIt.

Amidst the talks between both the parties, the armies clashed at the Line Of Actual Control (LAC) in Eastern Ladakh leading to the death of 20 Indian soldiers and many casualties had been seen on the Chinese side as well. As for the automotive industry, the companies have already begun processes to further increase local content and reduce any reliance on Chinese suppliers.

Despite the Vocal For Local campaign, the presence of Chinese brands in smartphone and electronic industries is really high. According to recent reports surfaced on the internet, Chinese global conglomerates such as Alibaba and Huawei having direct or indirect contact with the Chinese army could face a ban domestically soon.

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The Indian Intelligence sources have brought seven Chinese brands into the limelight as they are said to have profound links with People’s Liberation Army (PLA). They are Huawei, Alibaba, Tencent, Xindia Steels, Xinxing Cathay International, China Electronics Technology Group and the Chinse state-owned SAIC Motor Corp. The latter introduced its MG brand locally last year with the Hector and it has been well-received among customers.

MG Motor has British origins and is being marketed that way but there is no secret that it is owned by SAIC, the Chinese state-owned automotive design and manufacturing company headquartered in Shanghai. These companies could face action and are closely monitored. A subsidiary of SAIC, Nanjing Automobile, acted as a vehicle servicing unit for PLA previously as well.

SAIC has invested in millions on Morris Garages’ Indian operations and following the exit of General Motors, it took over the Halol production plant in Gujarat. MG recently launched the Hector Plus six-seater in India and it has new products in the pipeline.

The border issues will certainly have a say in the future of MG’s local operations. Maharashtra government has put on hold three major agreements signed with Chinese companies including that of a MoU worth Rs. 3,770 crore with the Great Wall Motors, China’s largest SUV producer.