According to sources, the Chinese auto giant SAIC-owned MG Motor may be trying to sell its majority position in the Indian auto industry. It has been reported that the Chinese-British automaker is in “advanced negotiations” for an equity sale with a number of interested parties, including Reliance Industries, Hero Group, Premji Invest, and JSW Group. Although it has not been reported which of these groups is interested, it has been stated that the company is looking to close the deal before the end of this year.
One source who is knowledgeable about the situation commented, “Hectic discussions are on with Indian companies, and MG Motor is looking to close a deal by the end of this year.” The source added that the talks have reached an advanced stage and the reason behind this move is that the company needs funds almost immediately to further increase its operations in the country. The company aims to expand its production and operations in the near future. The source further stated, “Negotiations are on, and the effort of MG management is to get a credible partner while managing attractive valuations.”
The company recently announced that it plans to sell a majority of its stake in the brand to Indian companies and high-net-worth individuals across the country because it wants to raise around Rs 5000 crore for its growth and expansion. Recently, while speaking to the media, MG Motor India CEO Rajeev Chaba stated that the company wants to “Indianise operation” by diluting the majority stake to financial institutions, partners, and high-net-worth individuals in the country. Chaba added, “We intend to Indianise shareholding, the company’s board, management, supply chain in the next two-four years.”
At the moment, MG Motor India has a manufacturing facility that it purchased from General Motors in Halol, Gujarat, and it produces around 1.2 lakh units. The company aims to increase its production capacity to 3 lakh units annually with the construction of a second plant in Halol. Furthermore, MG Motor announced its hopes to offer 4-5 new cars in the nation, with a major focus on EVs. According to the company, its EV portfolio will account for 65–75% of all sales in India. The company is further contemplating developing cell production and hydrogen fuel-cell technologies through partnerships or third parties in the country.
In other MG Motor India news, the company recently launched its newest fully electric hatchback, the Comet EV, in the country. The MG Comet EV has been launched with a price tag of Rs 7.98 lakh. This is the second electric car from MG Motor India and has become the most affordable electric car in the Indian market. The MG Comet EV comes powered by a 17.3 kWh battery pack. It takes about 7 hours to charge from 0-100% through a regular home socket. MG provides a 3.3 kW charger with the car. There is no fast-charging system available with the MG Comet EV. It gets a range of 230 km according to the official figures. The electric motor produces a maximum power of 42 PS and a peak torque of 110 Nm.
Keyword: MG Motor India looking to sell its majority stake to Indian companies – Reliance, JSW, Hero and Premji in the race