The British carmaker MG Motor has announced it plans to offer majority stakes to Indian local partners over the next 2-4 years as part of a five-year business roadmap in the country. Additionally, the automaker has lined up Rs 5,000 crore to expand operations in the country by 2028.
According to a PTI report, MG Motor India has been looking to raise capital to fund its next phase of growth. The company’s plans to bring in more capital to the country from its Chinese parent have not been successful so far, the report added. MG Motor is a British brand that is currently owned by China’s largest automaker SAIC Motor Corp.
The report also cited industry sources saying that the automaker has been waiting for government approval for around two years now and has therefore started looking for other options to raise capital.
On the other hand, the company in its five-year road map announced to set up its second manufacturing plant in the country, taking its installed capacity to 3 lakh units per annum and rolling out new products for the domestic market, including electric vehicles.
The automaker has announced its plans of introducing 4-5 new vehicles in India, with a specific emphasis on electric vehicles (EVs). It anticipates that its EV product line will account for as much as 65-75 per cent of total sales in India. Moreover, the automaker is contemplating the establishment of cell production and hydrogen fuel-cell technology, possibly through joint ventures or third-party manufacturing.
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At present, the company produces its goods at a manufacturing facility located in Halol, Gujarat, which it purchased from General Motors. The Halol plant has the capability of manufacturing up to 120,000 units per year.
MG Motor plans to also establish a second manufacturing facility in Gujarat, significantly increasing the combined production output from the current 1,20,000 to 3,00,000 vehicles.
With expansion plans in place, the automaker aims to have a total workforce of 20,000 by 2028.
“The company’s unwavering dedication to India is deeply ingrained in our ethos. As we pave the way for our next phase of sustainable growth, we have outlined a clear roadmap and vision for 2028. Our growth strategy is centered around strengthening localisation, aligning more closely with the government’s ‘make in India’ initiative while innovatively augmenting our promise consistently, and diligently meeting the evolving needs of the market,” MG Motor India CEO Emeritus Rajeev Chaba said.
The company said it aims to train 1,00,000 students under its ‘MG Nurture’ programme. The students will be trained in EV, ADAS, and connected car technologies. MG Motor India sells models like Hector, Astor, Gloster, and ZS EVs in the market. It recently introduced a small EV, Comet, in the domestic market.
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