MG Motor India, a Chinese car maker, is considering the establishment of a second plant in India, according to a company official.
Currently, the company operates a manufacturing plant in Halol, Gujarat, with a production capacity of 120,000 units per year.
“We are exploring the possibility of building a second plant in India, but it typically takes two to three years for a new plant to become operational,” stated Gaurav Gupta, deputy managing director of MG Motor India. The company has not yet identified a location for the potential second plant.
Since entering the Indian market in 2019, MG Motor India has introduced five models and sells approximately 5,000 units per month. Two of the models are electric vehicles (EVs), Gupta mentioned.
Gupta revealed that the company plans to launch a new model in India each year, either on the EV or internal combustion engine (ICE) platforms.
Furthermore, he stated that currently, 25-30% of the company’s sales come from EVs, and their goal is to increase this percentage to 35% by 2025. Gupta also mentioned that the company is considering the establishment of a battery assembly plant near their existing facility in Gujarat.
Gupta noted that the passenger car industry in India is growing at a rate of 9-10% per year. He added that during January to August in 2023, the company experienced sales growth exceeding 20%, and they hope to maintain this pace throughout the current calendar year.
Presently, MG Motor India sources batteries for their EVs from China.
To enhance the EV ecosystem, the company has partnered with Jio-BP to establish charging stations across the country.
MG Motor India has invested Rs 4,000 crore in India thus far. The company also exports cars to Nepal and other SAARC countries, and they are evaluating additional export destinations. They currently have 350 dealerships and plan to increase that number to 400 by the end of this year.