The company will set up a wholly-owned unit in India, to be headed by former General Motors executive Rajeev Chaba. The Indian automobile market is poised to become the third-largest vehicle market worldwide in 2020. SAIC’s entry into India is considered part of China’s policy to seek greater market share overseas through overseas ventures.
“The introduction of the iconic British sports car brand MG in India is an important part of SAIC Motor’s global strategy. Our aim is to provide best-in-class vehicles, integrating sophisticated British design and quality, breakthrough product features and a pleasing ownership experience,” the company said in a statement. The MG brand originated as an iconic British racing sports brand in 1924.
Recently, SAIC Motor has launched ‘internet car’ in collaboration with Alibaba in the ‘connected car space’. “This was possible by integrating the premium technological resources through the company’s leading world-class supplier base,” the company said.
Shanghai-based SAIC Motor owns the MG, Roewe and Maxus brands. It has also planned to enter the American market on its own.
It is reported that SAIC may acquire General Motors’ Halol-based 20-year-old plant and start manufacturing from there. GM shut down its manufacturing plant in Western India after failing to find a buyer. It announced winding-up of car sale business from its Indian manufacturing plant last month.
In April this year, South Korea’s second largest motor maker Kia announced its entry into India with a green-field car manufacturing facility in the southern state of Andhra Pradesh with a total investment of $2 billion.