[GoBabyGo]

Originally Posted by Shreyans_Jain

What’s the problem with that? At the end of the day, a company will succeed if only its products provide good value and if it is able to support them over time. They have to do this against established competition from Indian, Japanese and Korean players. As long as they are getting their product proposition spot on (like they did with Hector) no one has any reason to complain.

Hi Shreyans - I get your point and even now MG India has excellent product portfolio like Hector, MG ZS EV (not the Astor & Comet). I would, once again, want to understand why would anybody interested in taking majority stake when the intention of MG China (or SAIC) is to have a kind of puppet sitting in India. Beside, since Govt. of India is very seriously watching SAIC activities (or to be honest any Chinese company in India), why would any Indian company make huge investment in such a company & get themselves into watchlist.

Moderator - If my this message a political one, please delete it.

[neerajku]

Originally Posted by prajwalmr62

Well, that is all hypothesis. It is too early to say whether this deal is doomed. They might be choosing a non-automobile company to partner with, because they don't want meddling in their decision makings. They will still own 40-49% I believe, so not something easy to let go from investment perspective. Because this does not look like Joint Venture(JV) where there's also knowledge transfer, but just stakes being sold to reduce fire.

Well you have your own hypothesis and I have mine. I am going by what I have been seeing in the last forty years, right from Suzuki fighting tooth and nail to get the majority in Maruti Suzuki to many MNCs leaving as they did not want to give control. Many fought for some time but gave up like ITCs 40% shareholder BAT. There may be a few still around like Page for Gillette and may be a few others.
IP, quality control, pricing, royalty, fear of tech copy, tech transfer issues prevent them from ceding ground. Some partings are good like hero and Honda, may be due to long term relationship of the Patriarch and a legacy built. Most of them end up being acrimonious.
Why would Hector owners cede control to a non automobile company, and continue transferring money and tech, cant see a reason. Strategic sales do happen but on control until and unless there are iron clad agreements of management control it is a usually dead horse. Time will tell us.
My guess is Mahindra or Tata may also be one of the suitors. Hope in the end competition does not come down and we keep getting better products. Chinese are market leaders in making EV and SUVs at great price points and we should not be deprived of it.

[diwakarmuthu]

I read a few responses in this thread. MG in all possibility have been finding it difficult to raise funds in the Indian market for various reasons since 2020. And I understand one of the key directives is to have a person of Indian origin in key management / board positions for Chinese companies (I believe this has been mandated and most of the major Chinese brands are now restructuring their boards to meet the new norms)

I have read some news reports over the last week or so. This is what I think

1. MG's strategy is to transition as an Indian firm. So Jindal taking in 51% makes sense, but in actual it could be 45% while the remaining 5% will be left with key executives and dealers

2. MG's Indian arm expected to get a makeover representing the corporate identities of both the parties involved. Also many firms have signed or agreed to boost local manufacturing in India. This cannot happen without a local partner, especially if you are from China

3. Why is SAIC doing now. They were looking to raise approx 5000 crores for further investments. However, change of regulations meant, they needed to think otherwise. These discussions have been happening over 3 years now (as per news sources). So it is not a surprise.

In summary, I don't see a major change in the strategy for MG in launching new models. I still believe they will hold the design and product development from their HQ, while distribution, sales and marketing will be addressed by the regional counterparts.

I am not a big fan of their current line up. But, as an alternative they need to have the right ecosystem to survive. If this is the route, then it must be accepted.

[Bsreecharan]

Mahindra’s have had quite unsuccessful JVs in the Indian market where only Mahindra benefitted tremendously with tech know how. Ford, Renault, Sangyong classic examples of how JVs killed these, atleast the first two in India. They are still milking Logan through. Verito.

[PrideRed]

With so many rumor's floating around, I hope MG is not doing a Ford! A lot of well established manufacturers are struggling in Indian market and I don't how a novice like JSW/Reliance will help MG's fortunes other than pumping money for few years. Mahindra/Tata are better partners but then knowing how previous JVs worked, may not last long. Once the majority market shifts to EV, MG might have an upper hand, but will they be able to survive that long is a question.

[manpreetsj]

As per latest news article on ET Prime, JSW and MG Motor India have finalised term sheet. Things seems to be moving ahead. Hope MG gets the money firepower to launch more cars (EV sporty sedans)!!

[ferrarirules]

Originally Posted by manpreetsj

As per latest news article on ET Prime, JSW and MG Motor India have finalised term sheet. Things seems to be moving ahead. Hope MG gets the money firepower to launch more cars (EV sporty sedans)!!

This is a logical step for SIAC with govt blocking all the foreign direct investments for both SIAC and BYD. This is the route they will have to take to expand their footprint in India. With Indian ownership, they can then raise money locally as well.

[souravdas808]

Originally Posted by ferrarirules

This is a logical step for SIAC with govt blocking all the foreign direct investments for both SIAC and BYD. This is the route they will have to take to expand their footprint in India. With Indian ownership, they can then raise money locally as well.

This is also good for us. We don't have to feel uncomfortable while buying MG vehicles and don't have to worry about long term perspective. Credit to the govt for blocking direct entry to Chinese companies, the Chinese govt did the same thing to other countries.

[4x4addict]

Originally Posted by manpreetsj

Hope MG gets the money firepower to launch more cars (EV sporty sedans)!!

Are these products actually developed by MG or is it Chinese/siac products with MG logo stuck on them?

[thanixravindran]

I read some reports that JSW-MG are scouting to acquire the defunct Chennai ford plant and in talks with TN government. If so, it will be good that the automotive plant is revived.

[motorworks]

Originally Posted by 4x4addict

Are these products actually developed by MG or is it Chinese/siac products with MG logo stuck on them?

The original “MG” has been long dead! All products sold under the “MG” brand trace their R&D to SAIC ( at least from what I know). Yes, General Motors has a stake in this so called SAIC-GM-Wuling alliance, but I doubt if GM themselves have brought any technology to the table.

SAIC bought just the “MG” brand, not anything else. The MG cars are typically sold under the “Baojun” brand in China and even under the Chevrolet badge in some countries.

[manpreetsj]

Originally Posted by motorworks

The original “MG” has been long dead! All products sold under the “MG” brand trace their R&D to SAIC ( at least from what I know). Yes, General Motors has a stake in this so called SAIC-GM-Wuling alliance, but I doubt if GM themselves have brought any technology to the table.

SAIC bought just the “MG” brand, not anything else. The MG cars are typically sold under the “Baojun” brand in China and even under the Chevrolet badge in some countries.

GM has contributed engines and related tech to MG cars. Hector comes with petrol engine developed by Daewoo Motors (owned by GM).

MG HS and ZS (Astor) have been developed from scratch under MG branding (with R&D / design team based out of UK), whereas cars like Hector and Gloster are rebranded SAIC cars (maybe SAIC wanted to enter India market with well tested and proven cars).

Future development by SAIC under MG branding is increasingly visible via new ICE and EVs on sale in UK/Europe and Australia. Such deal with JSW will ensure good portfolio of cars will become available to us as well.

[4x4addict]

Originally Posted by manpreetsj

GM has contributed engines and related tech to MG cars. Hector comes with petrol engine developed by Daewoo Motors (owned by GM).

Where is GM & Daewoo nowadays?

[TorqueIndia]

‘Not in any discussion’: Sajjan Jindal-led JSW denies report of taking over MG Motor India

“We hereby confirm that JSW Holdings Limited is not in any discussion as referred to in the captioned news item nor any such proposal has been placed for discussion of the Board or any of its Committees,” it said. Referring to the article by The Economic Times, JSW stated that the report already stated that none of the listed JSW Group entities would be involved in the deal.

business today

Now it's difficult for MG India, it's 1.5L customers and dealers looks like SAIC lost interest in India too.

[manpreetsj]

Originally Posted by TorqueIndia

‘Not in any discussion’: Sajjan Jindal-led JSW denies report of taking over MG Motor India

business today

Now it's difficult for MG India, it's 1.5L customers and dealers looks like SAIC lost interest in India too.

Shouldn't read too much into this comment from JSW. Being a listed company, as per SEBI norms, any event/information that is price sensitive and is not in normal course of business, should be reported to stock exchange for shareholders information.

Any acceptance of fact that discussions are on-going will lead to non compliance.

If they are at non binding term sheet stage, nothing needs to be reported.

On SAIC loosing interest: I doubt that. Only reasons I can think of - (1) Comet not selling as well as they anticipated (2) Not able to raise funds to boost expansion.

Otherwise, from market sentiment, in recent past I have seen XUV500 owner upgrading to Hector Plus and a Harrier owner considering upgrade to Hector Petrol soon. More and more people are realising that MG is giving solid built cars, best in class interiors, VFM overall package. Hence, would love to see them stick around for longer!