MG Motors, a heritage British brand owned by State-Owned Chinese company SAIC plans to invest another INR 1,000 Crores in India to expand the company’s operations and launch new models in their portfolio. The brand currently has the MG Hector, Hector Plus and the MG ZS EV (Electric Vehicle) in the Indian market.
According to a press report, MG Motor India will be approaching the Department for Promotion of Industry and Internal Trade (DPIIT), to make fresh investment in the country. The recent changes in the FDI (Foreign Direct Investments) rules mandate that the Chinese-owned company seek approval/clearance from DPIIT to make fresh investments.
MG Motors already has INR 3,000 Crore worth of investments in India and has taken over the General Motors manufacturing plant and apart from the three models that are already up for sale in the Indian market, the brand recently unveiled the MG Gloster, a premium SUV which is slated to go on sale soon. According to the company’s President and MD, the Anti-China sentiments does have some short term impacts on the business, but the brand is positive that the business in the mid and long term will grow and trade is unlikely to get impacted.
The company has not yet revealed which route it will take to approach DPIIT but revealed that it will either “Borrow or put “Equity” and the company is in the process of filing when the need comes. The report also mentions that MG Motor India had to lose out on electric vehicle order from the Energy Efficiency Services (EESL), the central Governments electric vehicle procurement arm for use of EV in Govt. offices due to the change in rules where the DPIIT clearance is required, for government tenders.
The brand also mentions that even if a part is 20% costlier in India than other countries, the brand will still focus on increasing localisation.