SAIC Acquires GM’s Halol Plant; Announces Investment of INR 2000Cr

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China’s largest auto-maker, Shanghai Automotive Industries Company (SAIC) has signed a Memorandum of Understanding (MoU) with the Gujarat Government to set up a passenger vehicles manufacturing facility in GM’s defunct plant cluster at Halol.

The company, which at one point owned a 50% stake in GM India, is now looking to refurbish its troubled partner’s Halol facility with an investment package of INR 2000 Crore. The expected introduction of five more ancillary industries – Yan Feng, Huichoung, Waling Industry, Ling Yun and Sevic in the region will raise the total invested capital to over INR 3000 Crore.

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The Gujarat Government said that the company was very keen to start work at the earliest and promised that the new unit, which is expected to bring over 1000 jobs to the region, will be approved at the earliest.

Also Read: SAIC Motor To Set Up Its First Car Manufacturing Facility In India

SAIC, which is the first Chinese passenger car vehicle company to reveal plans of an Indian launch said that it is looking to bring in its coveted MG sticker to the country with a fully owned subsidiary, Morris Garages India. The new company expects to start production by early 2019.

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The MG India marque will be headed by former GM India heads, Mr. Rajeev Chaba as the President and Mr. P Balendran as the Executive Director.

The brand is expected to launch the ZS, a Ford Ecosport, Maruti Brezza and Tata Nexon rival as one of the first products in the Indian line-up. The ZS was first unveiled at the Guangzhou Auto Show in November last year and has already been spotted testing in Thailand.

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