HAVING EXPLORED MULTIPLE options for joint ventures and partnerships over the last few years, MG Motor India, the British brand owned by China’s largest car maker, SAIC Corporation has decided to divest its majority stake in the company. It is currently in negotiation with multiple potential suitors — right from high-net-worth individuals, corporate and financial partners.
With its FDI proposal with the Government of India stuck for several years now, MG Motor was relying on raising ECB loans to sustain the operation. Having managed the operation for almost two years on loans, the company took a critical call of divesting the stake and that too a majority stake.
Rajeev Chaba, CEO Emeritus spoke to Autocar Professional on the rationale behind the move and what to look forward to in the coming five to seven years.
What is the rationale behind divesting a majority stake in the company?
This story is from the 15th May 2023 edition of Autocar Professional.
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This story is from the 15th May 2023 edition of Autocar Professional.
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