MG Motor’s China Connection Sparks Scrutiny Over Eligibility for EV Manufacturing PLI Benefits

MG Motor’s bid for Production Linked Incentive (PLI) benefits in India’s electric vehicle (EV) manufacturing sector is under scrutiny due to its connections with Chinese entities. As MG expands its EV offerings, questions have surfaced about whether its ownership structure, largely tied to Chinese parent company SAIC Motor Corporation, aligns with the Indian government’s PLI eligibility criteria, which favor local ownership and domestic production.

The PLI scheme aims to boost India’s EV manufacturing capabilities by incentivizing companies that prioritize local production and supply chains. While MG has reiterated its commitment to localize manufacturing in India, concerns persist that significant Chinese investment might conflict with the program’s objectives. The Indian government has yet to finalize its assessment, but the decision could set a precedent for other foreign companies with substantial non-domestic backing eyeing PLI benefits.

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