MG Motor India, the Indian arm of China’s SAIC Motor Corp has announced an ambitious plan dubbed ‘MG 3.0’ to bolster their manufacturing, indigenisation and expansion endeavours over the next 4-5 years. They have earmarked a hefty INR 5,000 crore investment for the cause and expect to create at least 20,000 direct and indirect job opportunities.
The carmaker plans to focus heavily on local sourcing and production and further explore cell production and hydrogen fuel-cell technology using their own and partner facilities. They are confident that this move will help them to take their business to the next level.
The automobile giant has set its sights on expanding its manufacturing facility in Halol, Gujarat with a third phase of the roadmap. This will bring their total annual capacity to 1.8 lakh units. In the second phase company plans to up the ante and reach their current capacity of 1.2 lakh units. With an eye on the future the company has set an ambitious target of achieving sales figures of 80,000 to 100,000 units by 2025.
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To reach this goal company plans to launch 4-5 new cars in the market with a special focus on electric vehicles. To support this endeavour company is striving to build an ecosystem for EVs to source components locally with their EV portfolio expected to contribute 65-75 per cent of total sales in India.
Rajeev Chaba, MG Motor India CEO Emeritus, recently announced the company’s plans to increase domestic production of electric vehicle parts and set up a battery assembly facility in Gujarat, in order to make wider use of electric vehicles possible. Additionally, the company will explore hydrogen fuel-cell technologies to reduce its carbon footprint.
As part of the plan, the company aims to list itself on the Indian stock exchange, although Chaba anticipates this to happen closer to the year 2028 in a step-wise manner. The first step will be to get Indian shareholders on board, such as HNIs, domestic financial institutions, dealer networks and even employees. The second step will be the listing process.
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MG Motor India is looking to take its business to newer heights by exploring the possibility of setting up cell manufacturing and hydrogen fuel-cell technology through joint ventures or third-party manufacturing. Further, to strengthen its foundation automaker is eyeing a public offering by 2028 with the goal of diluting its dominant shareholding. This will be made possible by raising capital through private equity and selling off a portion of its shares to strategic investors.
Through their new roadmap company is creating job opportunities promoting domestic production and helping India transition to clean energy. They are investing in the latest clean technologies, such as hydrogen fuel cells and cell production to reduce their carbon footprint. By launching this new roadmap, MG Motor India is embracing the increasing popularity of electric cars in the country. This reaffirms their commitment to enabling India to become a sustainable and thriving economy.