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Chinese car maker MG Motor India is exploring the possibility of setting up a second plant in the country, a company official said.
Currently, the company has a manufacturing plant at Halol in Gujarat where the production capacity is 120,000 units per annum.
“We are exploring the option of putting up a second plant in India. It generally takes two to three years for a new plant to come into stream”, Gaurav Gupta, deputy managing director of MG Motor India said on Wednesday evening. The company has not identified so far the location of the possible second plant.
Starting operations in India four years back in 2019, the company is presently having five models and selling around 5,000 units per month. Out of the five models, two are electric vehicles (EV), he said.
Gupta said the company plans to introduce a new model every year in India, either on the EV or ICE (internal combustion engine) platforms.
He said at present, 25 per cent to 30 per cent of the company’s sales are coming from the EVs. “Our target is to increase this percentage to 35 per cent by 2025”, Gupta added. He also said the company is also evaluating the option of a setting up a battery assembly plant near the existing facility in Gujarat.
Gupta said the passenger car industry is growing at a pace of nine to ten per cent per year. “During January to August in 2023, the company’s sales grew at more than 20 per cent. We hope to maintain this pace during the current calendar year”, he said.
Presently, MG Motor India is sourcing batteries for its EVs from China.
For improving the EV ecosystem, the company has partnered with Jio-BP to set up charging stations in the country.
The company has invested Rs 4,000 crore so far in India. MG Motor India is also exporting cars to Nepal and other SAARC countries, he said, adding the company is evaluating other export destinations as well.
With 350 dealerships at present, the company plans to raise it to 400 by the end of this year, he added.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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