MG Motor Shores Up India Game Plan
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MG Motor India is reportedly in talks with JSW Group for a 15-20% stake dilution at a valuation of about $2-2.5 billion. This may lead to a fund infusion of ₹2,000 - ₹3,000 crore in the company. (Source: Link)
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MG Motor India today onboarded candidates for the 4th edition of ‘Drive Her Back’; an initiative aimed to empower women to re-establish their careers after a break.
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- The first-of-its-kind program offers women equal and inclusive professional as well as networking opportunities within diverse verticals of the company.
- Providing a dignified platform for women from differentiated backgrounds and communities to resume their careers, season 4 is also set to benefit the spouses of MG Motor’s current employees.
- Under this unique initiative, women are provided coaching and internal mentoring to ensure their seamless adaptation to the corporate environment.
- Season 3 of the ‘Drive Her Back’ initiative culminated with over 1,500 applications, empowering over 60 women to kickstart their careers in their respective fields at MG Motor.
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MG Motor India says will sell majority stake to Indians in 2-4 years
MG Motor India, which is owned by Chinese company SAIC Motor, plans to sell a majority stake to Indian investors to raise more than Rs 5,000 crore in 2-4 years.
MG Motor India will use these funds to build a second plant in Halol, Gujarat, and boost its annual capacity to about 300,000 units by 2028, said its CEO Emeritus Rajeev Chaba on Wednesday. The second facility is projected to have an annual capacity of 180,000 units, while the current Halol plant has a capacity of 120,000 units per year.
The company, which has invested about Rs 4,000 crore in India till 2022, is trying to bring foreign direct investment from its Chinese parent for the last few years. However, it has not been able to get the necessary approvals from the Indian government to do so. The relationship between India and China has been frosty since border clashes between their troops in 2020.
"We are going to Indianize the operations. We plan to dilute our shareholding, and the majority will be owned by Indians in 2-4 years," Chaba told reporters at a press conference in Delhi.
"We are in talks with multiple partners, and all of them are Indians. We are in talks with Indian financial institutions, Indian private companies, some high net worth individuals (HNIs), etc. We are also encouraging our dealer partners, making it a one-of-a-kind stake sale. We have not finalized anything as of now," he said. The company also plans to sell shares to its employees.
Chaba said that the company hopes to complete the first step—identifying the investors—in this financial year itself. "Listing the company on the stock exchange is also part of the plan, but it would happen close to 2028," he said.
The domestic sales of MG Motor India jumped by 21 per cent in 2022-23 to 48,886 units, according to SIAM data. The company plans to sell approximately 100,000 units in 2023-24.
"Through plant number 2, we will introduce 4-5 new cars, and most of them will be EVs (electric vehicles). So, out of 300,000 units annual capacity, about 65-75 per cent capacity would be for EVs," said Chaba.
The company currently sells just two EVs, ZS EV and Comet, in India. In FY23, EVs accounted for just 11.6 per cent of its total sales.
Chaba said that "Indianizing the operations" means Indianizing not just the shareholding but also the board, the management, the supply chain, and the technologies.
"We are going to assemble the battery ourselves in Halol from next year. Then, we are going to explore cell manufacturing and production of EV parts through a joint venture or a third party in India," he said.
Not only this, MG Motor India feels that hydrogen fuel cells will also become a viable option in 3-4 years' time. "Right now, it may not be a viable option because of the cost. Can we localize that hydrogen fuel cell in India at Indian rates, with the help of a joint venture, and then supply them to OEMs (original equipment manufacturers) in India? If we have this technology, can we bring it to India? This is what we are seriously thinking," Chaba noted.
MG Motor India's Halol plant in Gujarat employs about 4,000 people directly and indirectly at present. By 2028, the company plans to employ 20,000 people directly and indirectly through both plants in Halol, he mentioned. Chaba said the front end of the company would continue to be managed by him and his team.
He said that the investment "will be much more than Rs 5,000 crore" for the second plant, but right now, "we are being prudent in saying the investment will be 'Rs 5,000 crore upwards' by 2028".
MG Motor entered the Indian market in 2019 when it launched its first car, Hector, in June that year. The company sells five models—Hector, Gloster, Astor, ZS EV, and Comet—in India.
Business Standard
MG Motor India, which is owned by Chinese company SAIC Motor, plans to sell a majority stake to Indian investors to raise more than Rs 5,000 crore in 2-4 years.
MG Motor India will use these funds to build a second plant in Halol, Gujarat, and boost its annual capacity to about 300,000 units by 2028, said its CEO Emeritus Rajeev Chaba on Wednesday. The second facility is projected to have an annual capacity of 180,000 units, while the current Halol plant has a capacity of 120,000 units per year.
The company, which has invested about Rs 4,000 crore in India till 2022, is trying to bring foreign direct investment from its Chinese parent for the last few years. However, it has not been able to get the necessary approvals from the Indian government to do so. The relationship between India and China has been frosty since border clashes between their troops in 2020.
"We are going to Indianize the operations. We plan to dilute our shareholding, and the majority will be owned by Indians in 2-4 years," Chaba told reporters at a press conference in Delhi.
"We are in talks with multiple partners, and all of them are Indians. We are in talks with Indian financial institutions, Indian private companies, some high net worth individuals (HNIs), etc. We are also encouraging our dealer partners, making it a one-of-a-kind stake sale. We have not finalized anything as of now," he said. The company also plans to sell shares to its employees.
Chaba said that the company hopes to complete the first step—identifying the investors—in this financial year itself. "Listing the company on the stock exchange is also part of the plan, but it would happen close to 2028," he said.
The domestic sales of MG Motor India jumped by 21 per cent in 2022-23 to 48,886 units, according to SIAM data. The company plans to sell approximately 100,000 units in 2023-24.
"Through plant number 2, we will introduce 4-5 new cars, and most of them will be EVs (electric vehicles). So, out of 300,000 units annual capacity, about 65-75 per cent capacity would be for EVs," said Chaba.
The company currently sells just two EVs, ZS EV and Comet, in India. In FY23, EVs accounted for just 11.6 per cent of its total sales.
Chaba said that "Indianizing the operations" means Indianizing not just the shareholding but also the board, the management, the supply chain, and the technologies.
"We are going to assemble the battery ourselves in Halol from next year. Then, we are going to explore cell manufacturing and production of EV parts through a joint venture or a third party in India," he said.
Not only this, MG Motor India feels that hydrogen fuel cells will also become a viable option in 3-4 years' time. "Right now, it may not be a viable option because of the cost. Can we localize that hydrogen fuel cell in India at Indian rates, with the help of a joint venture, and then supply them to OEMs (original equipment manufacturers) in India? If we have this technology, can we bring it to India? This is what we are seriously thinking," Chaba noted.
MG Motor India's Halol plant in Gujarat employs about 4,000 people directly and indirectly at present. By 2028, the company plans to employ 20,000 people directly and indirectly through both plants in Halol, he mentioned. Chaba said the front end of the company would continue to be managed by him and his team.
He said that the investment "will be much more than Rs 5,000 crore" for the second plant, but right now, "we are being prudent in saying the investment will be 'Rs 5,000 crore upwards' by 2028".
MG Motor entered the Indian market in 2019 when it launched its first car, Hector, in June that year. The company sells five models—Hector, Gloster, Astor, ZS EV, and Comet—in India.
Business Standard
MG Motor India, in collaboration with CleanMax, has today announced that 50% of the energy required for its manufacturing operations is from renewable resources.
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- MG Motor India's pledge to reduce CO2 emissions by nearly 2 lakh MT over the course of 15 years is equivalent to the positive environmental impact of planting over 13 lakh trees.
- The brand has already witnessed a remarkable 36% decrease in CO2 emissions, with levels dropping from 0.59 MT in 2022 to 0.38 MT in the first quarter of 2023.
- This reduction in emissions has resulted in a significant decrease of 2251MT in MG Motor India's carbon footprint in the first Quarter of this year.
- Projections indicate that this downward trend will continue, with an estimated carbon footprint reduction of 11889 MT by the end of this year.
- For the next 15 years, the Halol facility will continue to draw power from CleanMax's hybrid park in Rajkot, ensuring a reliable and sustainable energy source.
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Mahindra may become new owner of MG Motors
There is a news making rounds that Mahindra group may buy majority stake in MG India. Buy I have a serious concern.
There is an International dispute between Mahindra and FCA group over the ROXOR and THAR copy of JEEP design that extended to Australia as well. MG Hector has a FIAT 2.0L engine. Keeping that issue simmering under, don't know how that will go between both the companies. Alternatively will Mahindra replace the FIAT engine with it's own in the coming months of take over?
Mahindra may buy majority stake in MG India
There is a news making rounds that Mahindra group may buy majority stake in MG India. Buy I have a serious concern.
There is an International dispute between Mahindra and FCA group over the ROXOR and THAR copy of JEEP design that extended to Australia as well. MG Hector has a FIAT 2.0L engine. Keeping that issue simmering under, don't know how that will go between both the companies. Alternatively will Mahindra replace the FIAT engine with it's own in the coming months of take over?
Mahindra may buy majority stake in MG India
MG Motor has sold over 29,000 vehicles during the first half of 2023 in India. The brand registered 21% growth over 24,000 units sold during the same period in 2022.
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- MG Motor also registered its highest-ever retail sales of 6,051 units in March 2023.
- MG Motor sold 1,15,000 vehicles in the European market alone, a 143% year-on-year increase, while MG's NEVs accounted for over 50% of its total sales in the January-June period.
- MG products are available in 28 European countries with more than 830 outlets throughout Europe. Monthly deliveries of MG in Europe have exceeded 20,000 units for four consecutive months.
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To commemorate its 100th Year anniversary, MG Motor is recognizing and rewarding its loyal customers in India with 100-day customer campaign.
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- Following benefits will be available across all MG Motor India dealerships: Daily Giveaways, Special Pricing, Exchange Benefits, Loyalty Schemes, Extended Warranty, and Service Offers for new customers.
- MG Motor India has setup 11,500 EV chargers, employed 37% diverse workforce with a focus on Women's Empowerment, educated 30,000 girl children and aims to upskill 1,00,000 students under MG Nurture by 2025
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