SAIC, the Chinese conglomerate, has entered into a memorandum of understanding with the government of Gujarat to set up the manufacturing plant for the MG brand in India. SAIC is all set to invest Rs 2,000 crores over the next five years with production beginning as early as 2019.
While SAIC was mulling over buying GM’s facility in Halol, the American car maker’s decision to retain its Indian operations as an export hub seems to have led to SAIC building its own manufacturing facility. SAIC had bailed out GM back in 2009 when the American giant was facing bankruptcy.
With ex-GM head, Rajeev Chaba at the helm of MG Motor India, the Indian subsidiary of SAIC, the brand is expected to start its India innings with environment-friendly mobility solutions. The products will be designed and developed at the European facilities and built to international standard in India.
SAIC’s arrival will also bring in its ancillary units around the Halol plant and is expected to create more than 1,000 jobs. We expect MG to come in with three products, the MG3, the MG5 and the MG GS by late 2019.