Chinese carmaker in talks with Indian investors, including Reliance, for a potential deal by year-end
MG Motor, a subsidiary of Chinese company SAIC Motors, is reportedly in talks to sell its majority stake in its Indian car business to several Indian investors, including Mukesh Ambani’s Reliance Industries, Hero Honda, Premji Invest, and JSW Group.
According to reports in Free Press Jrounal and ToI, MG Motor is looking to finalize a deal by the end of this year and is seeking a credible partner at attractive valuations.
The company is seeking funds to support its next phase of expansion, which includes the establishment of a second manufacturing facility in Gujarat with an investment of Rs 5,000 crore.
The new facility will significantly increase the company’s installed capacity from 120,000 units to 300,000 units. MG Motor reportedly wants to dilute its majority stake in the company to Indian entities to “Indianize operation” and has plans to Indianize shareholding, the company’s board, management, and supply chain over the next two-four years.
The potential sale comes amid evolving geopolitical dynamics and stricter regulations regarding foreign investments, reflecting the changing landscape of business relationships between China and India.
Country’s biggest conglomerates, Reliance will join Tata’s league, if it outbids other players including Hero, Premji Invest and JSW for MG Motors.
MG eager to add more electric vehicles to its portfolio for Indian market, has been grappling to get a nod from the Indian government to raise funds from its Chinese parent.