Shanghai Automotive Industries Corporation (SAIC), China’s largest automobile manufacturer recently signed a memorandum of understanding (MoU) with the state government of Gujarat. The MoU was signed by SAIC Motor officials, Vijay Rupani, chief minister of Gujarat and MK Das, principal secretary, industries and mines department.
The company intends to commence manufacturing by 2019, and according to the MoU, a total of 50,000-70,000 vehicles will be produced in the first year. SAIC Motor plans to employ around 1,000 workers at GM’s recently shut down Halol plant.
The company had stated that it will function through a fully-owned subsidiary, MG Motor India, and appointed Rajeev Chaba as its president and MD, and P Balendran as the executive director.
SAIC will invest ₹2,000 crore in the India project alongside five Chinese automotive suppliers – Yanfeng Automotive Interiors, Huichoung, Wuling Industry, LingYun Industrial Co and Sevic – who intend to set up units near the plant, at an additional cost of ₹1,000 crore.
The Gujarat government has stated that it will facilitate registration, approval and other collaboration for the project.