Automaker SAIC Motor likely to partner with Indian company to expand base

Following a border clash in June 2020, the Indian government had banned Chinese apps and imposed restrictions on foreign direct investments

Chinese automobile manufacturer SAIC Motor Corp is planning to partner an Indian company to expand its presence in the automobile market.

A senior executive said that talks between SAIC, the parent of MG Motor India Pvt Ltd, and one of the potential Indian investors are likely to conclude in a few months, according to a report in the Economic Times (ET).

The executive said, "We are in negotiations with several (potential) partners. We will close the talks as soon as possible, maybe in two months."

He added that India is a very important market for SAIC and a unique one, and a right partner is needed who can help the Chinese minds understand the Indian market.

Following a border clash in June 2020, the Indian government banned Chinese apps and imposed restrictions on foreign direct investments.

Chen Hong, chairman of SAIC Motor Corp, said, "We are looking at many different possibilities. Everything is being considered. Our top priority is to see how we can benefit the Indian consumers."

The company has been in talks with investors, including JSW Group, for selling a majority stake to raise funds for the Indian operations. On its part, steel-to-cement JSW Group is keen to diversify into India's EV market, according to the ET report.

The executive said that the SAIC is keen to scale up MG Motor's operations in India. "We have to ramp up the capacity and bring models that are a lot more suitable for the Indian market. They should have the same philosophy for the customers," he said, adding that SAIC has more than four decades of experience in the automobile industry with robust technologies and a wide product range for the Indian market.