Mumbai: Border tensions over the last five months have led to India tightening Chinese investment rules in this country. This has reportedly prompted Chinese-owned Morris Garages (MG) to discuss contract manufacturing options with Volkswagen and Mahindra-Ford JV.
Volkswagen and Mahindra-Ford JV are expected to lease out their assembly lines for contract manufacturing to MG.
The Volkswagen Group is a partner of SAIC, MG’s parent in China. If the deal materialises, it will help VW use their assembly lines more efficiently.
Currently, MG makes its cars at General Motors’ old plant at Halol, Gujarat. It has a production capacity of 1 lakh units per annum.