MG Motors of China is looking to sell its India unit and is reportedly in talks with companies like Reliance Industries (RIL) and Hero Group.
The sale may happen by the end of 2023, MG Motors managing director Rajeev Chaba told CNBC TV-18. MG Motors is owned by the Shanghai Automotive Industry Corporation, China’s largest automaker.
Besides Mukesh Ambani’s RIL and the Hero Group, Premji Invest and the JSW Group are also among MG Motors’ suitors.
MG Motors has only a little over 1% share in India’s automobile market. Yet, if Ambani’s flagship buys it, RIL will suddenly be competing directly with Tata Motors, a legacy brand in this space.
MG Motors’ drive in India
MG Motors, which made its India entry in June 2019, initially sought to invest $650 million in the market. A year later, however, the nationwide covid-19 lockdown forced it to slow down.
A straining India-China relationship, too, affected its business. Last year, Indian tax officials raided its premises amid heightened scrutiny of companies with China links.
Yet, MG Motors is in no mood to scale down its ambition in India and is increasingly focused on electric cars.
It recently launched a new electric car, Comet, hoping it will account for 30% of its sales this year. Chaba said the company expected to sell up to 90,000 units of its electric models.
MG Motors aims to turn profitable by 2025 and has raised its annual sales target from 80,000 units earlier to 100,000 units now.