Photo used for represenational purpose. (Photo: Arjit Garg/News18.com)
Report says that once the MG Motor India will find credible partners at great valuation, it will brand will close the deal by the end of this year.
The leading car manufacturing company MG Motors Indian, which is now under the ownership of China’s Shanghai Automotive Industry Corporation (SAIC), is all set to sell the majority of stakes in the car business to top Indian companies. It has been reported that the leading organizations including Reliance Industries, Premji Invest, two-wheeler manufacturer Hero Honda, and JSW Group are in talks with the company in order to own some.
The report also suggested that MG Motors currently is in hectic discussions with the above-mentioned companies. Once it will find credible partners at great valuation, the brand will close the deal by the end of this year.
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The step has been taken in raising funds from Indian companies to kickstart another phase of growth in the country. Earlier, the brand was seeking to raise money from its parent company in China to support its operations in India. For that, MG Motor even requested the government to allow them to raise found from it but did not receive favorable results due to the ongoing tension with China.
Meanwhile, it has been more than two years since the Indian government put up a sanction on China, which forced Motor to raise found from other ways, mainly through Indian companies.
The carmaker informed that they are likely to generate somewhere around between Rs 45,00 to Rs 5,000 crores in the next two to four years. With this amount, the company will kickstart the second phase of expansion in India and will give local partners and investors a majority interest.