Chinese automaker MG Motor India is actively considering the establishment of a second manufacturing plant within the country, according to an official announcement. The company, which currently operates a production facility in Halol, Gujarat, with an annual capacity of 120,000 units, is looking to expand its manufacturing footprint in response to increasing demand for its vehicles.
Gaurav Gupta, the Deputy Managing Director of MG Motor India, stated that they are in the early stages of exploring this option and have not yet determined the location for the potential second plant. Gupta noted that it typically takes two to three years for a new manufacturing facility to become operational.
MG Motor India entered the Indian market in 2019 and has since become a prominent player with a portfolio of five models, including two electric vehicles (EVs). The company has been selling approximately 5,000 units per month in India and plans to introduce a new model every year, either on the EV or internal combustion engine (ICE) platforms.
One of MG Motor India’s key objectives is to boost its electric vehicle sales. Presently, 25 to 30 percent of the company’s sales come from EVs, and they aim to increase this figure to 35 percent by 2025. To achieve this goal and enhance the EV ecosystem, the company has partnered with Jio-BP to establish charging stations across the country.
In terms of growth, Gupta highlighted that the passenger car industry in India is experiencing a yearly growth rate of nine to ten percent. In 2023, during the period from January to August, MG Motor India reported a remarkable sales growth of more than 20 percent. They aspire to maintain this momentum throughout the current calendar year.
MG Motor India currently imports batteries for its EVs from China but is exploring the possibility of setting up a battery assembly plant near its existing manufacturing facility in Gujarat. This move would further bolster their commitment to electric mobility in the country.
The company has invested Rs 4,000 crore in India so far and is also expanding its presence in international markets, exporting cars to Nepal and other SAARC countries. They are actively evaluating additional export destinations.
As part of their broader expansion plans, MG Motor India intends to increase its dealership network from the current 350 dealerships to 400 by the end of the year, enhancing their reach and accessibility to customers across India.
MG Motor India’s exploration of a second manufacturing plant reflects its commitment to meeting the rising demand for its vehicles in the Indian market. As the automobile industry continues to evolve, particularly in the electric vehicle segment, the company’s strategic investments and expansion plans position it for a promising future in India’s automotive landscape.
