April 20, 2021

MG Motor: MG Motor India to take a position a further Rs 500 crore



New Delhi: MG Motor India, the Indian subsidiary of China’s largest automaker, SAIC, is contemplating beginning a further shift at its manufacturing plant in Halol in Gujarat this 12 months to fulfill demand for its autos.

The corporate is planning to recruit 1,000 staff, immediately and not directly, on the plant by the tip of 2021 to ramp up manufacturing for the launch of a midsize sports activities utility automobile (SUV). At current, it has 2,500 staff on the plant. The brand new automobile, which shall be launched within the third quarter of the continuing calendar 12 months, will compete with the likes of Hyundai Creta and Kia Seltos.

“The robustness of demand has continued into the brand new 12 months. We’re seeing inexperienced shoots within the financial system,” MG Motor India president Rajeev Chaba advised ET. “With Covid-19 circumstances falling and introduction of vaccines across the nook, client sentiments are constructive. We’re assured of bettering trade efficiency in 2021… We must add an additional shift at our facility for launching our fourth product later this 12 months.”

The corporate presently sells Hector, Gloster and ZS EV SUVs. It registered 5,000 contemporary bookings for Hector and 200 orders for ZS EV in December.

Chaba was talking on the sidelines of the launch of Hector 2021, priced at Rs 12.89-18.32 lakh, Hector six-seater priced at Rs 15.99-19.12 lakh and Hector seven-seater priced at Rs 13.34-18.32 lakh (ex-showroom).

The corporate is within the strategy of investing Rs 1,000 crore to extend manufacturing capability at Halol to 100,000 models every year, from the preliminary 75,000-80,000 models. It has additionally firmed up plans to take a position a further Rs 500 crore to extend localisation ranges and improve manufacturing capability of its distributors. “The Rs 500 crore shall be along with Rs 4,000 crore we’ve got already dedicated to the market. We wish to deepen localisation ranges of our autos,” mentioned Chaba.

Localisation content material in Hector and Gloster will improve 10-15% after the completion of the venture.

In 2021, MG Motor India expects 80% development in gross sales to 50,000 models. It bought 28,162 models in India final 12 months, accounting for a 1.2% market share and outselling carmakers comparable to Volkswagen, Skoda, Nissan and FCA, which have been current out there for greater than a decade. Moreover Tata Motors and Kia Motors India, it was the one carmaker to witness a gross sales development in 2020. It started gross sales within the nation in July 2019.

Chaba mentioned the extra capability at Halol shall be sufficient to fulfill buyer demand for the subsequent two years. “Past that (100,000 models), we’re nonetheless mulling choices. Due to the impression of the pandemic, the shortage of sources within the trade and idle manufacturing capability within the nation, we have to collaborate,” he mentioned. “I personally really feel contract manufacturing is a viable possibility. Choices to contemplate organising a brownfield or a greenfield manufacturing unit additionally stay on the desk… The choice on the fifth product and contemporary capability shall be thought-about as one answer in a while.”