Wednesday, April 6, 2022

MG to install second car factory

 MG car manufacturer is planning to set up a second factory. MG has been trying to raise additional funds through the FDI route, which the government has not yet approved. So instead, it is planning to raise Rs 5000 crore through external commercial borrowings - ECBs. If this will be successful, we will have to wait and see.

MG is also finding it difficult to manufacture the cars through another OEM. 

MG finds it difficult to raise funds from its parent company since the parent chinese company finds itself under watchful eyes of the Indian government. Indian laws rule that any foreign investment arising from a country that shares its borders with India will go through a scrutiny process. MG Motors is a subsidiary of SAIC Motors, a chinese motor company.

What will happen to the future of MG if it is not able to raise funds is a question left for its customers to ponder.

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