In yet another step towards retaining its position as the country’s auto hub, Gujarat on Wednesday pipped strong contenders Andhra Pradesh, Tamil Nadu and Maharashtra to ink a Rs 2,000-crore MoU with Chinese passenger car and commercial vehicle manufacturer SAIC (Shanghai Automotive Industries Corporation) for a car manufacturing plant at Halol near Ahmedabad.
The car maker expects to commence production in 2019. SAIC would be taking over the land vacated by American auto major GM in April this year following its decision to exit from Gujarat. As part of MoU with the state government, the Halol factory land, which had been leased out to GM India, is being transferred to MG Motors by Gujarat Industrial Development Corporation (GIDC), to which it belongs, for a transfer fee. The plant plans to provide employment to 1,000 people and would produce 70,000 car units in the initial phase.