Multiple companies are reportedly in talks with MG Motor India to acquire a stake in the car maker. According to a media report, Mahindra is one of the firms looking to acquire a significant stake in MG.
MG Motor India is looking to reduce the equity of the SAIC group – its current owner. It is reported that around 45-48 percent of the stake is up for grabs. Initially, it was reported that Sajjan Jindal from the JSW Group was looking to become a share holder.
However, now it seems that Mahindra and Mahindra along with the Hinduja Group is also looking to take up the stake.
MG is looking at improving its position in the Indian market and wants to have a local partner. With rising tensions between India and China, foreign investments in MG Motor India have become difficult due to sanctions. The Indian government has imposed certain sanctions on Chinese companies. This has made raising funds from SAIC more difficult.
By onboarding new Indian stakeholders, the company is aiming to dilute SAIC’s stake over the next 3-4 years. This move is also in line with the car maker’s expansion in India. This includes a new production capacity at Halol in the state of Gujarat.
Currently, the carmaker has Comet EV, Astor, ZS EV, Hector and Gloster on sale in India. The latest car launched by MG is the Comet EV. Given the growing popularity of EVs in the market, Comet has made an instant impact. The Comet is a great initiative for first time EV buyers. With its quirky design language and small dimension, Comet is an eye candy. Comet is the perfect choice for the ones looking to get a intra city EV. Loaded with features and tech, Comet is the choice for the new gen customers.
Also read – MG Motor India sold 5,006 cars in May 2023.