MG Motor India, the local unit of China’s largest automobile company, will sell vehicles with an "MG" tag, a British brand that SAIC acquired from Chinese firm Nanjing Automobile about a decade ago.
Rajeev Chhaba, a former India head of General Motors, as managing director. At least seven more people have been hired to lead the finance, human resources, purchase, IT and other functions.
SAIC had made an effort to enter India as early as in 2010, in an alliance with General Motors. The duo had planned to introduce five Chinese models, including a small car, a sedan and light trucks. The project was subsequently shelved.
CCI has approved SAIC's plan to acquire General Motors' facility in Halol, Gujarat. MG Motor will move into Halol, only if pending labour issues are settled
SAIC has indicated that it wanted to stay clear of the labour issues. If it needs to set up a new plant, it may then opt for Maharashtra or Tamil Nadu.
Its first product in India is expected to be an SUV, priced in the Rs 15 lakh - Rs 18 lakh range to take on the likes of Hyundai Tucson.
The company will also be borrowing products from SAIC-General Motors-Wuling Automobile’s Baojun product range in India. General Motors has already brought Wuling brand vehicles, like the Enjoy and Sail, to India. SAIC-General Motors-Wuling is a joint venture among SAIC, General Motors and Wuling Motors. SAIC and General Motors also work together in Shanghai-General Motors, a much larger joint venture that makes the Buick, Chevrolet, and Cadillac cars for the Chinese market ET