Who will take this Chinese cart? We are insulting MG Motors too much. Now the company has officially become Indian. Like we treat Mahindra and Tata Motors in India. Now we will have to treat this company like them. Which counter of MG Operations in India did they take? Sachin Jindal (JSW Steel Chairman) bought the operations of MG India.

Shanghai Automotive Industry Corporation (SAIC) purchased MG UK in 2007. It is a big brand and they had terrible cars. So why don't we buy them and make wonderful cars in their name? Together with GM at this time, They were selling many cars in China and GM was working very well in India.

Why Did MG Cars Suddenly Face Performance Issues in India?

MG Launches MG India Pvt. Ltd.: A Game-Changing Move!

Even though GM has failed in India. We will launch affordable cars, and we will try the Indian market. Then in 2017, they registered a company named MG Motors India Private Limited in India. So this means that they do not sell cars in India in their name, they are going to sell in the name of MG which is a very smart move. Because in 1924 India sold cars in MG. But MG already has a powerful brand value, as compared to SAIC. MG is still fine Then it launches Hector in 2019 for around Rs 12 lakh. It's quite a decent price. This vehicle gets a very strong response and then this brand unveils its Gloster. Then Aster, and then ZSEV.

The problem was that in the last 2-3 years the sales of this company have almost tapered off and have become almost saturated. Around 50,000 units per year, if this brand has to be done above this this brand needs more investment SAIC is not ready to invest much because they are scared of the Indian Government. Because our Indian Government had already stopped investment in BYD and Wall. Also, a lot of investigation is going into the Indian operations of Chinese companies. They are making high profits but they are not paying tax on the profit to the Government of India. Because a lot of investigation is going on, So SAIC is afraid that if we invest the money and the government blocks the money then what will we do?

MG Seeking Indian Partner to Strengthen India Operations

That's why they have been looking for Indian partners for a long time to run their Indian operations. Who can invest money with them and grow their India operations? It can reduce their risk and both parties can earn a lot of money. Some time ago news was coming that many Indian companies are interested in this. Like Reliance Group Hinduja groups, Jindal Group Tata Motors, and some said that Mahindra has a valuation of around 80,000 crores. 

People were also saying this because setting up a car company is tough. MG has already built a strong brand value. Also, if they get more investment, they can create even better money. Imagine if Tata Motors or Mahindra had bought it, then what a great title we would have! And anyway, this brand would have got a good upliftment. Because these brands have a strong reach in the market. They can conquer quite well. These brands have ₹ 35,000-40,000 crore cash lying there to invest in MG. The one whose valuation is Rs 80,000 crore was too much. That much valuation can't be obvious because Mahindra has a valuation of Rs 2 lakh crore in India. Force Motor's has a valuation of 4,000 crores. So MG Motor is selling cars at less than them and is asking for almost 20 times more valuation from them.

Official: MG Motors Forms Strategic Partnership with JSW

But, now JSW has officially bought a huge portion of MG motors for India operation. it has also been confirmed. Now this is no such Skeptical news. JSW Group Chairman Sachin Jindal and SAIC President Wang Xiaoqui met at MG headquarters in the UK and signed this deal. JSW Group is currently going to buy a 35% stake in MG Motors India Private Limited. In the coming time, he will make his majority stake by investing some more around 51%. With this, this company will no longer be a Chinese company and will become a completely Indian company. Because the majority of stakes are owned by Indians only, Around 5-6% stake is of employees. So, now it has become an Indian company. We used to make fun of it, no one can make fun of it. In the coming days, just like you respect Tata Motors or Mahindra, you can also give respect to this company, if not completely, then a little at least. 

Because profits are coming in India more than half. Because JSW group holds a 35% stake in this company. So valuation is not confirmed yet. You can assume it to be around Rs 10,000 crore. So JSW group is going to invest between Rs 2,000- 4,000 crore in this company. And this will be used to increase the production output and scale of the company. It is not that any promoters should exit, owners exit or sell their shares. And in this, SAIC still provides their support and new models. So that MG can launch in India by changing them. They will provide better technology and whatever technology they are making in the international market. All that is going to be given to this Indian group. So that it does not happen that SAIC has washed its hands that now we are not going to support anything because our share was sold.

JSW's Indigenous Part Manufacturing: Key MG Advantage

Elsewhere, JSW Group will focus on expanding its Indian operations. Will also focus on its Indianisation. Most of the parts of cars this company come from outside the market, especially from China. But now this brand is focusing on the Indianisation of its parts, For example, the small motherboards, electrical parts or lights, etc. Also, JSW Steel is a stronger steel manufacturer than whatever steel it will use in the car. They will source directly from there. They will bring raw materials from the company and sell them on their own and will conquer the market very well.

SAIC and JSW Chairman: Exploring Their Business Relationship

This is very good and in this, the President of SAIC says, “The automobile business is a global industry, and like any other similar industry, access and collaboration are crucial for its healthy growth”. Wow! What a line. Wang Xiaoqui wow! We are very pleased. He also says "SAIC has always adhered to the 'win-win cooperation Our approach is core capabilities and expanding our scale of production and sales in the growing Indian automotive market.

Both partners shall work closely to bring in the best of innovation, in creating greener and smaller mobility products and serving our consumers Seizing market opportunities, continuously expanding the brand influence and market share of products, and achieving greater success for MG in India" Wow! What a line! Mr. Wang Xiaoqui, you are a very good person.

 After this, the Chairman of Jindal's JSW Group said “We would like to thank SAIC and MG Motors for choosing JSW as the partners of their choice and look forward to building one of India's largest automobile companies together”.

MG boasts a storied history and undeniable success. It's an immense privilege to steer this brand and company forward, partnering with the formidable global entity SAIC. The anticipation is palpable as we embark on this journey after 6-7 months of ongoing discussions.