MG Motor to invest Rs 5,000 cr in India

British automotive giant MG Motor has committed to invest Rs 5,000 crore in India over a period of 4-5 years, as it plans to tap the burgeoning auto market in the country.

The company, which will be rolling out its first car model in India - an SUV - in the first half of the coming year, has already acquired the erstwhile plant of General Motors at Halol, Gujarat, for production purposes.

"As part of our Phase-1 plans, we've already invested around Rs 2,000 crore towards the refurbishment of the facility at Halol. Besides, we are setting up a new press shop, and work is underway to upgrade many of the other shops on the floor before we begin production," MG Motor India President and Managing Director Rajeev Chaba told DH.

The initial capacity of the plant will be around 80,000 units. The company is also setting up a vendor park in the vicinity of the plant, so as to facilitate an easy supply chain, and it is aiming at around 85% of localisation.

"Our first car will be an SUV, which we will launch in Q2 of FY2019, followed by the introduction of one new product in the Indian market every subsequent year," Chaba said, adding that the said SUV will be an over 4-metre vehicle.

The company would look at offering at least 4-5 cars in the coming years and is exploring different segments where opportunities are seen.

Advantage Bengaluru

MG Motor is enthusiastic about the growth prospects in the Bengaluru market.

While the company eyes 100 touch points across the country in the initial phase with the commencement of sales during the second quarter of the next year, a good number of dealerships are likely to come up in the Bengaluru region alone, which is seen to be among the top 3 markets in the first phase.

"We would be appointing close to 70 dealer partners initially. Meanwhile, MG Motor India is also committed to offering a digital buying and ownership experience to the tech-savvy consumers in Bengaluru and other markets. Overall, we expect 35-40% of our sales to come from South India in the initial phase of our nationwide operations," Chaba said.

Founded in 1924, MG Motor is a fully-owned subsidiary of China's SAIC Motor Corporation. It is noted that SAIC has invested over $3 billion towards electric mobility development, which MG Motor would be open to leverage.