MG Motor India Plans to Sell Majority Stakes to Fund Its Next Stage of Growth

On Wednesday, MG Motor India announced its plans to sell most of its stake to local partners. The company aims to dilute the majority of its stake for over 2-4 years as part of its five years business growth roadmap.

MG Motor, a British brand, is owned by China's largest automaker, SAIC Motor Corp. The company has lined up Rs 5,000 crore to grow its business operations in the country by 2028. It's looking to raise capital for some time to accelerate its next stage of growth.

According to sources, this automaker has been waiting for government approval to raise capital from its Chinese parent company for two years, which hasn't succeeded yet. Therefore, MG Motor India decided to look for other options to allocate the necessary funds required to expand its market share and portfolio in the Indian market.

Discussing the roadmap, the company announced its plans to set up another manufacturing plant in the country to expand manufacturing capacity to 3 lakh units a year. The company also plans to roll out new products, including electric vehicles, in the domestic market.

This automaker operates its manufacturing plant in Halol, Gujarat, which it purchased from General Motors. This manufacturing plant has a yearly production capacity of 1.2 lakh units.

While addressing its next five years roadmap to expand its portfolio in the Indian market, the company said it aims to introduce 4-5 new car models in the country where the prime focus would be EVs.

The company expects its EV portfolio would amount to 65-75 percent of its total domestic sales. MG Motor India highlighted that it's exploring the areas to set up cell manufacturing and hydrogen fuel cell technology by leveraging third-party manufacturing or collaborating with partner brands.

To enhance production capacity and grow its Indian portfolio, the company also plans to have a total workforce of 20,000 by 2028.

The president & MD of MG Motor India, Rajeev Chaba, mentioned that their company's dedication to India is deeply ingrained. The company has planned its next phase of sustainable growth through a clear vision and roadmap for 2028. He further mentioned that the company's growth strategy is centered on enhancing localization, aligning with the government's Make in India campaign, and diligently fulfilling the evolving needs of the domestic market.

Chaba mentioned that the company is focused on positively impacting society and promoting gender diversity. Moreover, he stated that 1,00,000 students are aimed to be trained in EV, ADAS, and connected car technologies under the company's MG Nurture program.

MG Motor sells several cars like Hector, Astor, and ZS EV in India. Recently, it launched its small EV, Comet, in the Indian market.