MG Motor India keen to acquire Ford’s manufacturing unit

MG Motor India has shown interest in the assets of Ford India. MG has reportedly tried to tie up with the American automaker after hearing the news of it exiting manufacturing in India. MG is interested in taking over both manufacturing units at Sanand and Maraimalai Nagar factories. MG said in a statement that talks are at a very early stage, so Rajeev Chaba declined to comment further.

MG looked to Ford’s facility for contract manufacturing during the pandemic. This had an impact on sales which it said had turned down plans to expand its capacity. Ford still has a few vehicles left in stock, for which buyers are expected to offer huge discounts.

Ford is not only associated with MG, but is also in talks with several automotive industries including electric two-wheeler maker, Ola and Mahindra & Mahindra.

MG Motor, the British brand owned by China’s SAIC Motor Corp, is expected to outperform the Indian market this year and double the sales in 2022, the country head of the maker of the Hector SUV said.

A new mid-size SUV, the MG Astor, unveiled on Wednesday is expected to be a key driver of the growth, even as the company also predicts the supply shortage of semiconductors, which is causing automakers globally to slash production, to improve by the January-March quarter of 2022.