Hector success drives MG Motor to look at options for 2nd plant
MG Motor India Pvt was successfully promoted by its first model. A company executive said that the company is preparing to build a second production plant in the country to meet the demand for its cars.
Rajeev Chaba, President and Managing Director of MG Auto India, said that announcements about the company ’s plans may be announced later this year.
"Our current production capacity can be expanded to a maximum of 100,000 units. We are considering the choice of green space and brown land without excluding any problems."
He said: "There is still a piece of land next to our current factory," this new investment will show our commitment to the Indian market.
Chaba declined to disclose the size of the new investment. In addition, he did not disclose whether the company is in talks with some automakers about the possible acquisition of a factory.
The British brand owned by China SAIC Motor Corp. entered the Indian market last year and plans to invest Rs 50 crore by 2021. Its first model was the Hector off-road vehicle (SUV), which was launched in June and May. So far, more than 30,000 orders have been obtained. MG will also start selling ZS latest electric cars SUVs in the next few months, and two products will be launched by 2021.
SAIC is the first Chinese automaker to enter the Indian market, and it takes a cautious approach as it acquires GM's annual production capacity of 80,000 vehicles in Harol, Gujarat. The strong demand for Hector and its ambitious product plans forced the company to expand its production capacity.
Chaba said that the Halo plant is expected to achieve full capacity utilization within two years.
The Mint reported on November 10 that two of China ’s largest automakers, SAIC and Great Wall Motor Co., are in talks with GM to acquire the Detroit automaker ’s last remaining plant in India, which is located in Mahara Talego in Strabane.
Despite the slowdown in economic growth, the Indian automotive industry has witnessed the investment of three new players: SAIC, KIA Motors of South Korea and PSA Group of France.
Both MG and Kia launched their products in 2019, and PSA Group will launch its first model, the C5 Aircross SUV, this year.
Great Wall, China's largest SUV manufacturer, is also seeking to establish its first factory in India and may introduce its Haval SUV brand.
For MG, the healthy demand for the latest SUV cars has been greatly reduced because it successfully reduced sales of established drivers such as Tata Motors Ltd and Fiat Chrysler.
Despite the sluggish economic sentiment, MG has sold about 3,000 Hectors every month in the past three months.
Chaba said that if demand continues to be strong after the implementation of the Bharat VI emission standard from April 1, the company may increase monthly production to 4,000 units and begin exporting cars from India.
Rajeev Chaba, President and Managing Director of MG Auto India, said that announcements about the company ’s plans may be announced later this year.
"Our current production capacity can be expanded to a maximum of 100,000 units. We are considering the choice of green space and brown land without excluding any problems."
He said: "There is still a piece of land next to our current factory," this new investment will show our commitment to the Indian market.
Chaba declined to disclose the size of the new investment. In addition, he did not disclose whether the company is in talks with some automakers about the possible acquisition of a factory.
The British brand owned by China SAIC Motor Corp. entered the Indian market last year and plans to invest Rs 50 crore by 2021. Its first model was the Hector off-road vehicle (SUV), which was launched in June and May. So far, more than 30,000 orders have been obtained. MG will also start selling ZS latest electric cars SUVs in the next few months, and two products will be launched by 2021.
SAIC is the first Chinese automaker to enter the Indian market, and it takes a cautious approach as it acquires GM's annual production capacity of 80,000 vehicles in Harol, Gujarat. The strong demand for Hector and its ambitious product plans forced the company to expand its production capacity.
Chaba said that the Halo plant is expected to achieve full capacity utilization within two years.
The Mint reported on November 10 that two of China ’s largest automakers, SAIC and Great Wall Motor Co., are in talks with GM to acquire the Detroit automaker ’s last remaining plant in India, which is located in Mahara Talego in Strabane.
Despite the slowdown in economic growth, the Indian automotive industry has witnessed the investment of three new players: SAIC, KIA Motors of South Korea and PSA Group of France.
Both MG and Kia launched their products in 2019, and PSA Group will launch its first model, the C5 Aircross SUV, this year.
Great Wall, China's largest SUV manufacturer, is also seeking to establish its first factory in India and may introduce its Haval SUV brand.
For MG, the healthy demand for the latest SUV cars has been greatly reduced because it successfully reduced sales of established drivers such as Tata Motors Ltd and Fiat Chrysler.
Despite the sluggish economic sentiment, MG has sold about 3,000 Hectors every month in the past three months.
Chaba said that if demand continues to be strong after the implementation of the Bharat VI emission standard from April 1, the company may increase monthly production to 4,000 units and begin exporting cars from India.
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