MG Motor Could Soon Become Indian As These Companies Eye Major Stake Acquisition
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MG Motor Could Soon Become Indian As These Companies Eye Major Stake Acquisition

MG Motor Could Soon Become Indian As These Companies Eye Major Stake Acquisition

Currently, the maker of the Hector and Comet EV is wholly owned by Shanghai-based SAIC Motors

MG Comet EV

  • MG had previously announced its plans to sell its majority stake to Indian investors with the aim of localizing the company.

  • Companies such as Mahindra, Hinduja, Reliance, and Jindal Steel have reportedly expressed interest in acquiring MG Motor India.

  • Any of these companies could potentially acquire a majority stake, resulting in MG becoming an India-owned company.

  • Due to the ongoing tensions between India and China, MG faced sanctions on fundraising activities.

  • MG has also announced its plans to introduce 4-5 new cars in India within the next five years.

MG recently revealed its plans to gradually transfer ownership to Indian stakeholders over the next two to four years. As a result, several Indian companies have shown interest in acquiring the carmaker, which intends to launch 4-5 new cars in the next five years. Currently, MG Motor India is wholly owned by SAIC Motor, a Shanghai-based company.

MG Astor

Who Could Become The New Majority Owner Of MG Motor India?

Carmakers like Mahindra and Mahindra, Hinduja (promoter of Ashok Leyland), Reliance, and JSW Group are reportedly interested in acquiring a majority stake in MG Motor India. Reports suggest that any of these companies could acquire a 45-48% stake in the company, with additional percentage going to dealers and Indian employees.

How Will It Change Things For MG?

With the infusion of Indian equity over the next few years, SAIC will become a minority stakeholder, holding around 49% or less. This would transform MG Motor India into a genuinely Indian company, removing its association as a ‘Chinese brand’.

Also Read: Is This The EV MG Should Have Brought To India Instead Of The Comet EV?

Due to ongoing tensions between India and China, MG Motor India was unable to raise funds from its parent company, SAIC. Sanctions on these fundraising activities have also hindered the carmaker’s expansion plans. However, this move will allow MG to attract investments from Indian companies and facilitate brand growth while meeting the demand. 

Currently, MG has five models in its lineup – Comet EV, Astor, Hector, ZS EV, and Gloster. If and when this move gets confirmed, we can expect many new models being launched in the country, perhaps more than just the planned 4-5 over the next five years.