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

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.

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'.

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.

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.

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.

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.