GM’s Chinese partner SAIC, which recently confirmed its Indian market entry with MG brand, has cleared all roadblocks to acquire GM India’s Halol plant in Gujarat. SAIC has signed a memorandum of understanding (MoU) on Wednesday with the Gujarat Government and GM India for transfer of the land lease agreement with 65 years still remaining.
SAIC will make an investment of over Rs 2,000 Crore, and an additional Rs 1,000 Crore investment is expected by its vendors at the facility, which in total will generate around 1,000 jobs. The Government authorities have assured a smooth transfer.
SAIC aims to start the India operations by 2019 with the MG brand of vehicles. Expected vehicles for India include MG GS crossover and MG3 hatchback.