MG Motor India estimated a swift trajectory of growth and more assertive expansion strategies following the entry of the JSW Group as an investor, according to company CEO Emeritus Rajeev Chaba.
He stated that MG Motor India is now planning for the next stage of expansion, having previously created a solid foundation based on technology, customer experience, gender diversity, and community involvement during the company’s first phase of operations in the nation. “Now with the investor coming in, definitely I would expect an accelerated growth path and more aggressive expansion plans. That’s what we look forward to and take advantage of the solid foundation,” Chaba said, PTI reported.
Responding to queries about the company’s outlook with the new investor, Chaba refrained from divulging details about the future roadmap, citing an impending announcement by the joint venture between China’s SAIC Motor and JSW Group scheduled for the following week.
SAIC Motor And JSW Group Joint Venture Agreement
Last year in November, China’s leading automaker SAIC Motor had forged a joint venture agreement with the JSW Group to expedite the evolution and expansion of MG Motor in India. MG Motor, a British marque, is under the ownership of Shanghai-headquartered SAIC Motor.
Under the agreement, the JSW Group will possess a 35 per cent stake in the Indian joint venture operations. SAIC will continue to provide support to the joint venture with advanced technology and products, aiming to offer mobility solutions with a focus on the Indian market.
In 2022, MG Motor India unveiled plans to invest approximately Rs 4,000 crore in a second manufacturing unit, engaging in discussions with various state governments, including Gujarat, where its inaugural facility is situated.
The company, aiming to enhance its annual production capacity from its plant in Halol, Gujarat, to 1.25 lakh units, sought to augment its capacity by an additional 1.75 lakh units from the second plant, thereby elevating its overall capacity to 3 lakh units annually within two years. However, its expansion endeavors faced delays due to financial constraints.
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Since its establishment in 2019, MG Motor India has injected Rs 7,000 crore and retailed nearly 200,000 vehicles in the country.
“We are quite established in terms of our image and technology, new innovation and gender diversity, with 37 per cent women right now across the blue collar and white collar jobs, and what we do in community service. So the foundation is laid,” affirmed Chaba.
He further stated, “Now we want more money injection for growth. Our volumes have grown every year. Since inception, we have grown much more than the industry growth but still, we could have done better if we had more expansion capacity, new products, and things like that. Still, until last year we launched one product every year. So despite the capital shortages, we have launched one new car every year till last year.” In 2023, the company sold approximately 60,000 units compared to about 48,000 units in 2022.
Regarding growth prospects for 2024, Chaba said, “Last year in 2023, our growth was over 20 per cent against industry growth of 10 per cent. This year also the industry is expecting the growth to be in the single digits, 5-6 per cent. We want to do much more than that. We are expecting 25-30 per cent growth this year in 2024.” He disclosed that the company had already announced plans to introduce two new products this year and would continue to participate in both conventional engines and electric vehicles segments in the future.
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