SAIC Signs Agreement With GM To Buy Halol Plant — Iconic MG Brand Set To Enter India

Chinese auto maker SAIC has signed an agreement with General Motors to buy Halol plant in Gujarat. Read more to know all the details about this development.

By Sukesh

Chinese automaker SAIC Motor Corp has signed an agreement with General Motors to acquire the company's Halol manufacturing facility in Gujarat. The information was revealed by a filing in Shanghai Stock Exchange.

SAIC Signs Agreement With General Motors To Buy Halol Plant

SAIC Motor Corp plans to enter the Indian market with its subsidiary brand MG Motor. The global product portfolio of the company includes hatchbacks, sedans and compact SUVs.

SAIC Signs Agreement With General Motors To Buy Halol Plant

As per reports, SAIC is expected to expand its reach by utilising General Motors' dealership network in the country. The Chinese automaker has reportedly registered its subsidiary in India as ‘MG Motor India'.

SAIC Signs Agreement With General Motors To Buy Halol Plant

General Motors India has already announced that it would halt the production at its Halol plant by April 28, 2017. By the end of 2016, GM was looking for a buyer. By that time SAIC had applied to the Competition Commission of India to acquire GM's production plant.

SAIC Signs Agreement With General Motors To Buy Halol Plant

Currently, General Motors India manufactures the Beat, Sail and Cruze in Talegaon plant and Tavera in Halol plant. The company will halt the production of Tavera as the Halol plant will end its operations later this month.

SAIC Signs Agreement With General Motors To Buy Halol Plant

General Motors has failed to achieve the desired results in the Indian market. Hence the company has frozen its future investments on new models for the Indian market. Officially, GM states that it is reviewing the future products for the country.

SAIC Signs Agreement With General Motors To Buy Halol Plant

The Halol manufacturing facility has a capacity of over 1,30,000 units per annum. The Talegaon production plant is reported to manufacture 1,60,000 units per year. Both the production facilities have low capacity production. By selling the Halol plant, GM aims to strengthen operations at Talegaon facility.

{promotion-urls}

Most Read Articles

English
Read more on: #saic #general motors
Article Published On: Friday, April 7, 2017, 12:55 [IST]
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X