The company would be investing Rs 2,000 crore to refurbish the facility, built in 1996, to produce the Morris Garages brand of cars and would also bring in five global vendors here.
A source close to the development indicated that the acquisition of the plant assets by SAIC, which is a joint venture partner of GM in China and also holds a stake in GM India, might not be a cash deal. “Some arrangement is being worked out internally between SAIC and GM on the acquisition of the assets. SAIC holds a 9.2 per cent stake in SAIC General Motors Investments and also has international collaborations with the company. The arrangement could range from stake dilution, transfer of assets, other collaboration etc,” the source said.
It is learnt that GM is looking at buying out SAIC’s stake in SAIC General Motors Investment, a joint venture that GM had formed with SAIC in 2009 for emerging markets. The same could be worked out through transfer of Halol assets.
Meanwhile, SAIC’s wholly-owned subsidiary, MG Motor India, has already signed a deal with the state government for transferring the lease of the 172-acre land parcel from GM India to MG Motor India.
Manoj Das, principal secretary of the industry and mines department, Gujarat, said, “MG Motor India is keen that the necessary approvals are processed speedily and we have ensured them of our full support. They plan to start production from the site by 2019.”
Five automotive suppliers Yanfeng Automotive, Huichoung, Walling Industry, Ling Yun and Sevic are setting up plants in Gujarat near Halol. They could also be offered land inside the existing site, which has scope for having a small vendor park, a source claimed.
Together, these vendors would invest close to Rs 1,000 crore in Gujarat.
 "SAIC Motor Corp's logos are pictured at its booth during the Auto China 2016 auto show in Beijing, China, in a file photo. Photo: Reuters")