SAIC Motor is not a big name in India, but in China, SAIC Motor is one of the largest car makers. The Shanghai-headquartered multinational auto manufacturer is reportedly planning to enter India soon as the first Chinese automaker.
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MG Motor India, the local unit of SAIC has reportedly started hiring top executives to start operations, reports Economic Times. The firm has brought on Rajeev Chhaba, a former India head of General Motors, as CEO, while seven more people have been hired to lead the finance, human resources, purchase, IT and other functions, the report adds.
SAIC's MG Motor India will sell vehicles under MG brand in India. MG is a British brand that SAIC acquired from Chinese firm Nanjing Automobile about a decade ago. The firm has officially registered in India.
P Balendran, another GM India veteran is also expected to join MG Motor India. Chhaba and Balendran will be the only two Indians in MG Motor India board, while the remaining six members will be Chinese nationals.
SAIC is planning to acquire General Motors India's Halol factory in Gujarat and it has the competition commission of India's approval for the same. GM India has already planned to cease its operations at Halol by the end of March 2017.
However, the final decision is dependent on how fast GM India settles labour issues at the plant. SAIC reportedly ready to take over the plant as early as in April and plans to roll out first MG model by the end of 2018 or early 2019. If the acquisition takes longer, SAIC may build a new facility.
The first MG product for India is expected to be an SUV in the range of Rs 15 lakh to Rs 18 lakh to take on the likes of Hyundai Tucson. SAIC previously made an attempt to enter India in 2010, in an alliance with General Motors. The team has planned to launch five Chinese models. However, the project was subsequently shelved for unspecified reasons. SAIC is also the partner of GM China operations. In the joint venture SAIC-GM, both parties hold 50 percent stake.
