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MG Motor is mulling establishing a second plant in India: PTI

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

Autocar Professional BureauBy Autocar Professional Bureau calendar 21 Sep 2023 Views icon3569 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
MG Motor is mulling establishing a second plant in India: PTI

MG Motor is mulling establishing a second plant in India, a company official told PTI. "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 informed PTI. 

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

As of now, it has not mentioned anything about the likely location of the second plant. 

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 10% annually, Gupta said. "During January to August in 2023, the company's sales grew at more than 20%. . 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.

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