Rumour: SAIC to be the first Chinese automaker to enter India

SAIC Motor Corporation Limited is reported to have registered a company in India and has started hiring key executives. This makes SAIC the first Chinese automaker to enter the Indian market.

MG Motor India which is a subsidiary of SAIC will sell vehicles in India under the "MG" brand. This MG brand was basically a British brand which SAIC acquired from Nanjing Automobile about a decade ago. Rajeev Chhaba, the former India head of General Motors would be the new CEO and at least seven more people have been hired to head various departments of the company.

The competition commission of India has given the approval for SAIC to acquire General Motors' plant in Halol, Gujarat. General Motors is SAIC's partner in Chinese operations. Now, the final deal will be made if GM settles labour issues at the Gujarat plant. If that happens, SAIC plans to roll out vehicles from late 2018 or early 2019. If not, the Chinese automaker plans to build a new manufacturing facility.

Back in 2010, SAIC and GM were planning to enter the Indian market with five Chinese models which included a small car, a sedan and light trucks. But those plans didn't materialize. Now with local production, the first product in India is expected to be an SUV, which will be priced in the range of Rs. 15 - 18 lakh.

Source: ET Auto