MG Motor India Explores Option of Setting Up Second Plant

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Chinese car maker MG Motor India is exploring the possibility of setting up a second plant in the country, a company official said.

The company currently has a manufacturing plant at Halol in Gujarat with a production capacity of 1.2 lakh units per annum.

Gaurav Gupta, deputy managing director of MG Motor India, said on Wednesday evening that it generally takes two to three years for a new plant to come into stream. The company has not yet identified the location of the possible second plant.

MG Motor India started operations in India four years ago in 2019. It currently has five models and is selling around 5,000 units per month. Out of the five models, two are electric vehicles (EVs).

Gupta said the company plans to introduce a new model every year in India, either on the EV or internal combustion engine (ICE) platforms.

He said that at present, 25-30% of the company’s sales are coming from EVs. “Our target is to increase this percentage to 35% by 2025,” Gupta added.

He also said that the company is evaluating the option of setting up a battery assembly plant near its existing facility in Gujarat.

Gupta said that the passenger car industry is growing at a pace of 9-10% per year. “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 said.

Presently, MG Motor India is sourcing batteries for its EVs from China.

For improving the EV ecosystem, the company has partnered with Jio-BP to set up charging stations in the country.

The company has invested Rs 4,000 crore so far in India. MG Motor India is also exporting cars to Nepal and other SAARC countries. The company is also evaluating other export destinations as well.

With 350 dealerships at present, the company plans to raise it to 400 by the end of this year.

          

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