SAIC inks deal with GM to acquire Halol plant

SAIC (Shanghai Automotive Industry Corporation) has signed a deal with General Motors for buying its production facility in Halol, Gujarat. This information was revealed through a company filing at the Shanghai Stock Exchange.

This deal is being seen as a major step towards SAIC's aim to enter the Indian market. We had earlier reported that the company has already started recruiting key executives for its Indian arm and is planning to launch its 'MG' car brand in the country.

General Motors is expected to cease production at its Halol plant from April 28, 2017. The American automaker had decided to sell the production plant after demand for its cars fell, which made the factory with a capacity of 1,10,000 units redundant. Now, General Motors is expected to use only its Talegaon factory for production of cars in the country.

In addition to the production facility, SAIC has also appointed Rajeev Chaba - former India head of General Motors, to be the Chief Executive Officer of MG Motor India and lead the Indian operations of the China-based automotive group.

Source: Hindustan Times