Reliance, Hero in race to buy stake in MG Motor India

MG is also said to be in talks with JSW Group and Premji Invest for equity sales.

Earlier this week, MG Motor India announced its 5-year plan, which includes setting up a second manufacturing unit. The carmaker also confirmed its plans to dilute its stake in the company.

Now, reports have emerged suggesting that Reliance and the Hero Group could be in the race to acquire a majority stake in MG Motor India. The company is also said to be in talks with JSW Group and Premji Invest for equity sales.

According to media reports, MG is looking to finalize the deal by the end of this year. It is said that the dilution and takeover will take place in a phased manner.

MG is looking to boost its production capacity to 3 lakh units. The carmaker has also lined up 4-5 new models for the Indian market, most of which, will be EVs. For this, MG had been trying to raise funds from its parent company SAIC for the last 2 years. However, companies with Chinese links have been facing increasing hurdles in getting approvals for fresh investments since the Indo-China border flare-up.

Source: TOI