[TusharK]

MG Motor India has announced its 5-year plan, which includes setting up a second manufacturing unit and 4 to 5 new models. The carmaker has also confirmed its plans to dilute shareholding.



As part of the next phase of expansion, MG plans to boost annual production capacity to 3,00,000 units by setting up a second plant in Gujarat. The new facility will also include a battery assembly unit.

The carmaker will enhance local sourcing and manufacturing across its operations by 2028. It plans to explore cell manufacturing and clean hydrogen-cell technology through owned or third-party facilities.

MG has lined up 4 to 5 new models for the Indian market. These are mostly EVs. The company expects EVs to make up 65-75% of its sales by 2028.

Over the next 2-4 years, MG plans to increase Indian shareholding in the company. It plans to invest more than Rs 5,000 crore and have a total workforce of 20,000 by 2028.

Link to Team-BHP News

[coolkurt]

Reliance in fray as MG Motor looks to sell India ops: Reports

Chinese auto giant SAIC-owned MG Motor may be looking to sell its majority stake in India car business and is in “advanced negotiations” for equity sale with a clutch of suitors, that include Reliance Industries, Hero Group, Premji Invest and JSW Group, TOI reported on Thursday citing sources.

MG Motor India termed questions around the talks with Reliance, Hero Group, Premji Invest and JSW as “speculative”.

As per industry sources, the automaker has been awaiting government approval for around two years now to raise funds from its parent. With little success so far, it has now started looking for other options to raise the required capital.

Source

[Nilesh5417]

Originally Posted by coolkurt

Reliance in fray as MG Motor looks to sell India ops: Reports

Chinese auto giant SAIC-owned MG Motor may be looking to sell its majority stake in India car business and is in “advanced negotiations” for equity sale with a clutch of suitors, that include Reliance Industries, Hero Group, Premji Invest and JSW Group, TOI reported on Thursday citing sources.

MG Motor India termed questions around the talks with Reliance, Hero Group, Premji Invest and JSW as “speculative”.

As per industry sources, the automaker has been awaiting government approval for around two years now to raise funds from its parent. With little success so far, it has now started looking for other options to raise the required capital.

Source

The Chinese automotive giant will step back and allow Indian...

So this is different from selling some stake to raise capital. Majority stake means the Indian investor gets control over the ops and long term strategy? How does that work for MG as a brand in India? SIAC can simply sell the minority stake and walk away from the market? And SIAC may or may not launch models from its global portfolio?

It doesn't sound like a partnership construct.

[puntra800]

Seems more like SAIC is trying the technology transfer model here, they provide all the necessary automotive know how and the Indian counterpart manufactures it. Please correct me if I am wrong is something like the Maruti-Suzuki brewing here. Knowing the Chinese they are long term thinkers, maybe they are playing out the strategy of making Indian consumers perceive it as an Indian brand and then eventually take over control after a few years or a decade

[Venkatesh]

MG India 2.0 plans to break into profits and sell over 80000 to 1 lakh units.



MG India 3.0 plans to indianise the company, open to diluting majority stake



Link

[Kosfactor]

Originally Posted by Venkatesh

MG India 2.0 plans to break into profits and sell over 80000 to 1 lakh units.

Looks like more of an escape plan, like what Ford tried.

Once the Hector sales go below 2K units per month, that plan will vanish.

I think reliance and hero group are perhaps looking at using their plant for producing EVs and entering the 4 wheeled automobile space.

[DriveOnceMore]

For me it's still not clear what direction this whole this is heading to?
So whoever buys it will they continue to have access to MG's Global product portfolio?
Or MG India will just be 'MG' for namesake (it's no different now as well ) and will have to develop their own products?

But overall this will be biggest hurdle for the company which otherwise started off on right foot, did the market analysis well and executed on-ground sales and service experience way better than established players.
I think Haval saw this coming and pulled out from the market well before launch.

[ajmat]

Smart move to expand yet skirt the current sentiment affecting Chinese companies. The licence fees, royalties and transfer pricing aspects will be interesting!

Ask Xiomi!

[S1200]

What I am confused about is that if they are getting high difficulties in approvals for expansion since so long, why MG is utilising precious limited production capacity by launching small margin product Comet.

[volkman10]

MG Motor may become ‘Jio Motors’ – Ambani in auto sector before 2024?

It is also worth mentioning that companies such as Reliance Industries, Hero Group, Premji Invest, and JSW Group are also very keen on purchasing the majority stake in MG Motor.

Reliance Industries is among the biggest multinational conglomerate in India. Given the expansion plans of the Mukesh Ambani-backed company, it would not be surprising if Reliance Industries venture into the automobile sector by purchasing the majority stake in MG Motor.

Link

[GTO]

Unless they are betting big on the future of electric cars (from China), I don't think Reliance will invest in MG Motors. The auto industry is a messy business, will require a lot of management bandwidth for very slim profit margins & heavy investments. Reliance is usually interested in "big" businesses & I don't think MG or SAIC are thinking of massive scale in India. They are happy running a lean, profitable organisation.

If they'd do it, it would only be for EVs, but I still don't think Reliance will enter such a complex business with low returns.

[Swarup5]

It seems like a desparate move to get out of a rather difficult market. Automotive business in India is no joke and without a clear long term vision and roadmap such decisions are inevitable.
To cut the chase , looks like MG is buying more time with Indian funding hoping to keep it afloat amidst a growing anti china diaspora. MGs Brand awareness and perception is still abysmal outside of metros and big cities though their products and service quality seems to be top notch.

I wish them well and hope not to see another Ford/GM in the making.

[ramki.grandhi]

If Reliance group acquires MG, it can still stay as MG (Mukesh Garages).
Just like VAG group, it can eventualy evolve as MAG group.

//Not trolling or being funny, they can truly retain logo as MG and change it on the records as per need.

[fhdowntheline]

Their cars would be then called Jio Hector/ Astor/ Gloster etc with additional Jio Sensing technology for ADAS.

[neerajku]

Not sure if an IC or diesel assembly line can be converted so easily to an EV line. If not so then wonder why would Reliance or PE funds would be interested until and unless MG would give Iron clad guarantees for tech transfer and new models.
Dont see Reliance becoming an automobile player so easily. Their hand are full with online battles, so much money and managerial bandwidth being committed to the pie in the sky/blue ocean hydrogen tech.