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 had earlier announced plans to sell its majority stake to Indian investors to localise the company.

• Companies like Mahindra, Hinduja, Reliance, and Jindal Steel have reportedly shown interest in MG Motor India. 

• Any of these companies could acquire a majority stake, thus making MG an India-owned company. 

• Due to ongoing tensions between India and China, there were sanctions on MG regarding fundraising. 

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

MG recently announced its plans to dilute ownership to Indians over the next two to four years. Now, several Indian companies have started showing interest in the carmaker, which plans to launch 4-5 cars over the next five years. The Indian arm of MG is currently and fully owned by SAIC Motor, a Shanghai-based company. 

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 have reportedly shown interest in buying a majority stake in MG Motor India. Reports suggest that any of these companies could buy out a 45-48 per cent stake in the company with some additional percentage going to dealers and Indian employees. 

How Will It Change Things For MG?

With the fusion of Indian equity over the next few years, SAIC would be a minority stakeholder, accounting for around 49 per cent or less. This would make MG Motor India a proper Indian company, shedding its image of a ‘Chinese brand’. 

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

Due to the ongoing tensions between India and China, MG Motor India was not able to raise funds from its parent company, SAIC. Sanctions on these fundraising transactions also put a hurdle in the carmaker expanding its operations. This will also allow MG to attract investments from Indian companies to grow the brand and keep up with the demand as well. 

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 4-5 that are currently planned over the next five years.