NEW DELHI: MG Motor India is planning to dilute its shareholding, the majority of which will be sold to 'Indians' in two-four years, according to the company's strategic five-year business roadmap announced on Wednesday.
MG Motor, the British brand owned by China's largest car maker Shanghai Automotive, is reportedly in talks with steel magnate Sajjan Jindal's JSW Group to sell a stake. MG is yet to share the names of potential partners.
MG Motor India is also aiming to invest more than Rs 5,000 crore and have a workforce of 20,000 -- both direct as well as indirect -- by 2028.
MG Motor India's decision to find a local partner by selling its stake comes as Chinese firms are struggling to obtain foreign direct investment (FDI) clearance from the Government of India for their future investment.
The carmaker plans to establish a second manufacturing facility in Gujarat to increase its production output from the current 1,20,000 to 3,00,000 vehicles (including both plants' capacity). The company intends to launch four-five new cars, mostly EV models, and achieve 65-75% of its sales from the EV portfolio by 2028. MG has plans to establish a battery assembly unit in Gujarat as well.
Rajeev Chaba, the CEO Emeritus of MG Motor India, said, "As we pave the way for our next phase of sustainable growth, we have outlined a clear roadmap and vision for 2028. Our growth strategy is centred around strengthening localization, aligning more closely with the government’s 'Make in India' initiative while innovatively augmenting our promise consistently, and diligently meeting the evolving needs of the market."