MG’s Boria bed is going to be tied to India? Mahindra can become the new owner!

New Delhi. MG Motors is preparing to sell a major share of its business in India. This news has remained a topic of discussion in the market for a long time. The names of many buyers for MG are also coming to the fore. Recently there was news that JSW Group is showing interest in this purchase. Now a new update has come out in this regard.

Latest updates suggest that along with Mahindra & Mahindra, the Hinduja Group (owners of Ashok Leyland) are also in the fray to acquire a major equity stake in MG Motor India.

Also read: Government of India’s eye on Hero, took cognizance of the income tax report, the company said – we do not know

Hinduja group also in competition with Mahindra
According to reports, MG Motor India has made its 45-48 percent stake available for sale as part of its strategy to strengthen its presence in the Indian car market. It is believed that Sajjan Jindal of JSW Group can take a major stake in the company. News about this is continuously coming out. Along with Mahindra & Mahindra, Hinduja Group is also very interested in this deal, such reports are coming.

Ban on funding from China
Since the border tension between India and China in 2020, foreign investment in MG Motor India from China is clearly visible due to the restrictions imposed by the Government of India on Chinese companies. These restrictions have barred MG Motor India from funding from its parent company, the SAIC Group. As a result, several plans of the company, including setting up of a new production unit at Halol, Gujarat, have come to a halt.

Also read: ‘Desi’ cruiser bike coming to end Royal Enfield’s ‘kingdom’, this Indian company has made preparations

With the induction of new Indian shareholders, MG Motor India will reduce its Chinese presence as the majority stake on the board will be held by Indian companies. This will make it easier for the company to raise investment from Indian companies. However, the impact of the stake will not be visible immediately, as the reduction in equity will be gradual over the next 3-4 years. MG Motor India started its business in the country in 2019 and currently offers SUVs like Astor, Hector, Hector Plus and Gloster. It also includes all electric vehicles like the ZS EV and Comet EV in its Indian portfolio.

,

Tags: Auto News, Bike News, MG Motors