MG Motor India plans to build a second manufacturing plant with Rs.4000 crores investment. According to a top company official, MG is in talks with Gujarat and a few other state governments.
At present, the auto manufacturer’s plant at Halol, Gujarat, is being augmented to handle a capacity of 1,25,000 units by 2023. The second plant, once built, will produce 1,75,000 units. Altogether MG Motor India plans to roll out 3,00,000 units by FY24.
Rajeev Chaba, MG Motor India President and Managing Director said, “Beyond 1,25,000 (at Halol), we need a second plant. It can be at Halol, and we are in touch with the Gujarat government for some additional land. Also, we have been approached by some other states. So, we have started our due diligence about the location of the second plant. We are meeting some other states as well as the Gujarat government.”
The company is planning to invest around Rs.4000 crore. As for the funding for the new plant, Chaba said that MG might consider External Commercial Borrowing (ECB), Foreign Direct Investment (FDI), or other investors, whichever is a good deal.
MG Motor India revamped its Halol plant last year with an investment of Rs.2500 Crores to increase its production capacity from 70,000 to 1,25,000.
The auto company has raised its sale from last year’s 40,000 units to 70,000 units this year, despite the chip shortage the industry is facing. MG is optimistic that by next year it will sell 1,25,000 units.
MG Motor India produces four models–Hector, Gloster, Astor, and ZS EV. The fourth model, a small EV, would be launched in March-April 2023 at a 10-15 lakhs price bracket.
Chaba says, “…these five products should take care of the 1,25,000 units at the Halol plant, and the sixth product has to come in at the new plant.”
Image Source: MG Motor India