Mahindra: A number of businesses have recently shown interest in buying a sizable chunk of MG Motor India’s shares, potentially reducing the percentage held by the company’s present owner, the SAIC Group.
The Hinduja Group and Mahindra and Mahindra are reportedly also bidding for a sizable part, contrary to original indications that Sajjan Jindal from the JSW Group was going to become a new shareholder.
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Mahindra to buy MG Motors
In an effort to increase its position in the Indian auto market, MG Motor India is said to have offered 45–48 per cent of its stake available for purchase by Indian individuals or organisations. Indian authorities have put a number of sanctions on Chinese enterprises as a result of the ongoing border tensions between India and China, which have affected foreign investments in MG Motor India. MG Motor India’s expansion goals are therefore being hampered by the difficulty of raising money from its parent business, SAIC Group.
MG Motor India seeks to integrate new Indian stakeholders, gradually diluting the SAIC Group holding over the next three to four years, to lessen its Chinese identity and draw investments from Indian businesses. This decision will allow the business to rekindle its partnership with SAIC and move forward with its expansion ambitions, which include establishing a new production facility in Halol, Gujarat.
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