Automobiles News

MG Motor mulls options for setting up a second India plant


MG Motor is looking at the possibility of setting up a second plant in India, news agency PTI reported on September 21 quoting an official of the company.

“We are exploring the option of putting up a second plant in India. It generally takes two to three years for a new plant to come into stream”, Gaurav Gupta, deputy managing director of MG Motor India, told PTI.

The Chinese car maker has a manufacturing plant at Halol in Gujarat. The production capacity at the plant is 1.2 lakh units per annum.

As of now, the company has not said anything about the likely location of the second plant it is considering.

MG Motor began operations in India in 2019. At present, the company has five models being sold here and their sales number around 5,000 units per month.

Two of these five models are electric vehicles (EV). Currently, 25 per cent to 30 per cent of the company’s India sales are coming from the EVs, sales data showed.Currently, MG Motor India sources batteries for its EVs from China.The company is looking to introduce a new model every year here, Gupta said. It could either be an EV or an ICE (internal combustion engine) car.

“Our target is to increase this percentage to 35 per cent by 2025”, he added. The company is also looking at the option of establishing a battery assembly plant near the existing Gujarat unit.

The passenger car industry is growing at a rate of nine to ten per cent annually, Gupta said. “During January to August in 2023, the company’s sales grew at more than 20 per cent. We hope to maintain this pace during the current calendar year”, he added.

With an aim to improve the EV ecosystem, MG Motor India has tied up with Jio-BP for charging stations here.

So far, the company has invested Rs 4,000 crore in India, Gupta said. Currently, the company also exports cars to Nepal and other SAARC countries. The company is looking at other export destinations as well, Gupta said.

The company has 350 dealerships at present. It is planning to increase the number to 400 by the end of this year.


Source link