Jindal group to acquire 48% stake in MG motor, making it an Indian-owned company
Delhi : A fresh report has surfaced that indicates a different scenario among the rumours that MG Motor India is selling its share in the nation to maintain its company. A agreement to increase Sajjan Jindal's ownership in MG Motor India, a division of Shanghai-based SAIC Motor, is about to be finalised. Sajjan Jindal is the chairman of JSW Group.
Sajjan Jindal is anticipated to acquire about 45–48 percent of his interest in MG Motor India through one of his privately held businesses, according to the article. In addition, 5-8 percent of the firm would be owned by MG Motor India's Indian workers and dealers. Due to these changes in ownership allocation, about 51 percent of MG Motor India's stock will be held by Indian corporations, with the remaining 49 percent owned by foreign organisations.
If this strategy is carried out, MG Motor India would move from a Chinese to an Indian business, with a primarily Indian top management. Sajjan Jindal and his son recently met with SAIC Motor executives in China as part of ongoing talks that have been occurring for some months. Legal arrangements, according to industry sources, have already been commenced, and the execution of these official and enforceable agreements is expected within the next 3-4 months.
MG Motor India is currently valued at $1.2-1.5 billion (Rs 9,800-12,300 crore). Originally a British brand, MG was acquired by SAIC, one of China's leading automakers. In 2019, the business launched the Hector midsize SUV on the Indian market. The Gloster, Astor, ZS EV, Comet EV, Hector, Hector Plus, and MG Motor India's Gloster are among the company's current offerings.
SAIC invested over Rs 5,000 crore when MG Motor India's operations began. However, in reaction to Chinese measures after the COVID-19 outbreak and the border tensions between China and India, the Indian government set limitations on Chinese investments abroad. Great Wall Motor, a Chinese automaker, has made the decision to postpone entering the Indian auto market as a result. These conditions have had an effect on MG Motor India's operations, and in order to maintain its viability, SAIC Motor has had to provide external commercial borrowings.
MG Motor India is concentrating its efforts on SUVs for the Indian market. The company sells vehicles such as the Hector, Astor, Gloster, and ZS EV. MG has also just released the Comet EV, a commuter-focused city electric hatchback.
