China's SAIC finalises plans to set up car factory in India

SAIC Motor, one of the biggest vehicle-making companies in the world and the largest in China, today announced its plan to enter the Indian automobile market through a fully-owned car manufacturing facility in the country.

Ranked 46th in the Fortune Global 500 list, with an annual revenue of over USD 100 billion, SAIC will start local manufacturing in 2019. It will debut the British brand MG (Morris Garages), which it had bought some years ago.

The company is in the process of finalising its manufacturing facility and is firming up its product strategy for the Indian market, details of which will be announced at a later stage.

No Chinese automobile maker has been able to successfully crack the Indian market. Several of them announced plans only to abort them later due to unspecified reasons.

However, sources say that SAIC is serious about the India market and will develop products locally rather than bring products that are sold overseas. These tailor-made products, the company hopes, will help in keeping prices competitive to match with the market leader Maruti Suzuki.

SAIC is one amongst several new automotive companies who are lining up investments in India.

The MG brand, which originated as an iconic British Racing Sports brand in 1924, has evolved into a modern-day innovative brand through the last 93 years. MG products are designed and engineered at its European and Global Design Centres.

Rajeev Chaba, a veteran with over two decades of experience in the automotive sector, will be the President and Managing Director of MG Motor India. Chaba’s last assignment was as global COO in Vanguard Logistics, USA and as an operating partner of ManCapital, a UK-based private equity firm. He was also one of the presidents of General Motors (GM) India.

Balendran, also a former GM India employee, is on the board of the MG Motor India as an Executive Director. Balendran has joined MG Motor India after spending over 18 years in global automobile companies in senior positions.