Gujarat is one of the most preferred destinations for Chinese carmaker SAIC Motor as it announced its entry into the Indian market on Wednesday, said a top company official. The company will manufacture products of MorrisGarages brand. The production will begin in 2019.

“Ranked 46th in the Fortune Global 500 list, with over $100 billion annual revenue, SAIC Motor is pleased to be part of the expanding Indian automotive market, slated to be the third-biggest in the world by 2020,” said a company statement.

“We are exploring different options to set up manufacturing facility. Gujarat is one of the most preferred options,” said P Balendran, executive director of MG Motor India, SAIC Motor’s wholly owned subsidiary in India. Sources said Maharashtra and Andhra Pradesh are the other options.

Sources in the know said the company will take over the facility at Halol in central Gujarat, where US carmaker General Motors ceased its operation exactly two months ago. Company officials had also met state government officials to set up operations in Gujarat. Whether it will get any incentives, on the lines of what Tata Motors, Ford Motors and Suzuki Motors Company got, is still not clear.

“The introduction of the iconic British Sports Car Brand ‘MG' in India is an important part of SAIC Motor’s global strategy. Our aim is to provide best-in-class vehicles, integrating sophisticated British design and quality, breakthrough product featuresand a pleasing ownership experience,” the company said in a statement.

The good news

Sources said the company will take over the facility at Halol where GM ceased its operations two months ago