British-origin car brand MG Motor has recently unveiled its premium full-size SUV- Gloster which will be launched in the coming few days
MG Motor has had a good run in India. In fact, it is kind of a dream start for any automotive brand. The manufacturer entered the Indian market with the Hector SUV last year in July and has been performing really well. Thanks to its bid SUV characteristics like bold exteriors and spacious interiors with loads of features, the car has become the best-selling car in the segment.
This huge sales success of Hector resulted in MG launching multiple new cars in India, in a short span of time. Their next launch in India post Hector, was an electric crossover ZS EV, followed by the six-seater Hector Plus earlier this year. Recently, the brand unveiled its full-size flagship SUV- Gloster which is soon set to be officially launched.
With sales booming, and demand for their new cars growing, MG India is hungry for more. They plan to launch even more cars in India, in different segments. To help them execute their plan of launching more cars, the automaker has revealed that they would invest an additional Rs 1,000 crores.
Future plans of MG Motor in India
In an interaction with The Economic Times, MG Motor India President and MD Rajeev Chaba said that the brand is looking to invest an additional Rs 1,000 crore in Indian in the next one year; so that it can boost production capacity at its facility in Halol district in Gujarat. He further added that some part of this resource will also be used to add value to operations in India through localisation of high-end components.
MG Motor has already invested around Rs 3,000 crores in India. Its Gujarat manufacturing plant in Halol currently has an annual production capacity of 75,000 units to 80,000 units, which the company plans to scale up to 1,00,000 units annually. The Halol manufacturing facility was acquired by MG Motor from General Motors in 2017, the same year the American carmaker discontinued its manufacturing and sales operation in India.
MG Motor is a British origin car manufacturing brand which is currently owned by Chinese automaker SAIC Motors. In accordance with the latest updates in FDI norms, due to its Chinese lineage, the company will first need to take approval or clearance from DPIIT to make any fresh investments.
Anti-China sentiments and challenges
On being asked whether or not the current anti-China sentiments across the country will have an impact on its sales numbers, Chaba clarified that the current sentiments will have impacts on business for a short term but in medium and long term it will be a growth-oriented business. The company was hoping that international differences between the two countries would not hamper trade in a big way.
He further added that part of the resources would also be used to add value to its operations in India through localisation of high-end components, electric vehicle battery localisation and tooling at its vendors. The automaker is also mulling on the option of adding another manufacturing facility in Indian in the coming future.