MG Motor India acquires Halol plant from GM, plans full revamp

Three months after SAIC Motor Corporation, the largest automobile manufacturer in China and owner of the MG, Roewe and Maxus brands, officially announced plans to enter the Indian automobile market through the MG brand and a fully-owned car manufacturing facility, MG Motor India has inaugurated its manufacturing facility in India. The acquisition of GM India’s Halol plant happened last week. 

MG, which inked an MoU with the Gujarat government on July 5, is to initially invest Rs 2,000 crore in the plant, the bulk of which will go in for the acquisition and refurbishing. The plant will have a capacity of 80,000 units per annum in the first phase. MG Motor India will roll out its first product from the plant in 2019. The full revamp of the facility, which is spread across 170 acres, is slated to be completed by 2019. The company has already hired an initial workforce of 70 employees at the plant.

“Today is a water-shed moment for the MG brand in India with the inauguration of our first-ever manufacturing facility here. We aim to positively contribute to the ecosystem here in Gujarat by generating employment opportunities for local talent and leveraging the supplier base,” said Rajeev Chaba, president and MD, MG Motor India.

The greenfield facility was inaugurated with a traditional Indian ‘puja’ ceremony in the presence of all MG Motor India employees, MG Motor International employees and key representatives of the local administration including Gujarat government.

“We greatly appreciate the pro-active approach displayed by the Gujarat government in facilitating the smooth transfer approval of the Halol plant and granting us the required approvals to re-start the operations. With the takeover and other transfer formalities having completed, we will start refurbishing the entire plant very soon, with MG’s state-of-the-art manufacturing tools, equipment and processes,” said P Balendran, executive director, MG Motor India.