MG had commenced its India innings, with its manufacturing operations at its Halol, Gujarat plant in April 2019. In barely less than two years, it has plans of beginning mass production. Also, the company has already geared up for additional growth.
And also, the company is preparing for its next model – the Creta fighter (Codenamed Model K). Commenting on this, Rajeev Chaba, President, and Managing Director, MG Motor India, in an interview with Autocar India said, “We’ve already invested Rs 3,000 crore in the last two and a half years, and we are going to invest another Rs 1,500 crore this year,” He further added, “The additional Rs 1,500 crore will be invested in expansion and localization.”
“Before we introduce our fourth car (Model K) in the third quarter of this year, we need to increase capacity to 7,000-8,000 units a month, and that’s what we are focusing on right now. This means, we can go up to 80,000-90,000 cars a year,” he also said.
Some points are mentioned below so that readers could have better information on the topic-
- MG would add more shifts to expand capacity at its Halol plant
- Localized content in Hector would increase by 10% this year
- Creta would be rivaling the MG Model K to debut by Q3 2021
In addition to that, localization could be another region where the company could also be focusing. For instance, the MG Hector debuted in 2019 and has almost about 70% of all its components sourced locally. Now, MG is operating to further increase the content from Indian suppliers. Commenting on this, Chaba said, “If you consider the diesel Hector, then 84 percent of it is localized, and in petrol form, there is more than 55-60 percent localization,”
Well with that said, do let us know your opinions on the topic as well, by dropping a comment down below.