SAIC to acquire GM's Halol plant, signs MoU with Gujarat govt

Shanghai Automotive Industries Corporation (SAIC) had recently confirmed its plans to enter the Indian automotive market through its fully-owned subsidiary - MG Motors India. Now, the company has signed a Memorandum of Understanding (MoU) with the Gujarat state government for its manufacturing project. It will be taking over General Motors' recently shut down plant in Halol. Gujarat government has assured the manufacturer to facilitate registration and required approvals for the said project.

The MoU also reveals that SAIC will be employing around 1,000 workers in its Gujarat plant, when operations begin in 2019. The company is planning to invest a total amount of 2,000 crore in its Indian operations. Additionally, five Chinese automotive suppliers are planning to invest an additional amount of Rs. 1,000 crore to set up their units around the Halol plant.

SAIC is aiming to produce 50,000 - 70,000 units at its Halol facility, starting from the year 2019. Information about the products that will be launched under the MG Motors India brand will be revealed in the near future.