China's SAIC Motor to invest up to US$2 billion in India

SAIC could also manufacture battery packs locally in collaboration with its Indian partner.

China-based SAIC Motor and the parent company of MG Motor India, plans to invest up to US$2 billion in India by the end of this decade.

According to a media report, SAIC aims to build and sell over 1 million units along with its local partner JSW Group. Yu De, Head of International Operations and Assistant to the President of SAIC Motor, said, “We have a very ambitious plan. We have good cooperation with JSW Group. We are looking at setting up a second plant in India.”

De went on to confirm that the company has lined up an investment of US$1-2 billion for India for the next 5 years or so. It will help the company introduce a range of products from B SUVs to C SUVs and compact cars.

De stated that the company will initially focus on the domestic market. However, the JV with JSW Group has ambitions to export to key right-hand-drive markets like Australia and South Africa in the long term. SAIC could also manufacture battery packs locally in collaboration with its Indian partner.

The JV will be investing Rs 5,000 crore in a new plant in Halol, Gujarat, expanding the annual production capacity from 1,00,000 units to 3,00,000 units. It plans to introduce a new product every 3-6 months, starting from this festive season.

Source: Autocar India