MG Motor, a 100% subsidiary of China’s Shanghai Automotive Industries Corporation, has inaugurated its manufacturing facility in Halol, Gujarat, the first one in India. With an initial capacity of 80,000 units per annum in the first phase, MG Motor India will roll out its first product from the plant in 2019. The company had signed a memorandum of understanding (MoU) with the Gujarat government in July this year to set up the manufacturing unit. MG Motor is planning to invest about Rs 2,000 crore initially.
“With the inauguration of our first-ever manufacturing facility, we aim to positively contribute to the ecosystem here in Gujarat by generating employment opportunities for local talent, leveraging the capable supplier base and contributing to the overall benefit of the society and community here,” said Rajeev Chaba, president and managing director, MG Motor India.
As part of the MoU with the state government, the factory land, which had been leased out to GM India, has been transferred to MG Motors by the Gujarat Industrial Development Corporation (GIDC). The company acquired the plant on an asset sale basis from General Motors India and it is free to hire its own fresh workforce at the plant. The company has already hired an 70 people.
“We appreciate the proactive approach displayed by the Gujarat government in facilitating the smooth transfer approval of the Halol plant and granting us the required approvals to re-start operations. With the takeover and other transfer formalities having been completed, we will start refurbishing the entire plant very soon,” said P Balendran, executive director, MG Motor India.