MG looking for automobile unit in India on lease

Oct 08 2020 02:16 PM
MG looking for automobile unit in India on lease

MG Motor has made an announcement about INR 1000 crore investment in the country to ease the manufacturers in executing the plan of launching more cars. As of now, MG retails- Hector, Hector Plus and ZS EV in India and is going to add Gloster soon. MG has launched its first Hector car in July last year and is doing great in the Indian market. MG Motor is looking for contract manufacturer of its products in India. The sources said that the company is already in talks with brands such as the Volkswagen Group and Mahindra-Ford joint venture about the contract manufacturing.  MG Motor like all Chinese firms had to bear intense government scrutiny amidst growing border tension between India and China. MG Motor India manufactures and assembles its products at its Halol facility in Gujarat.

MG Motor plans to lease out the manufacturing plant from either VW Group or Mahindra. MG will manufacture its cars at these leased units as MG wants to scale up the production to 1 Lakh per year. The current capacity at its Halol manufacturing facility is about 75,000-80,000 units per year. The chances of getting a deal with VW Group seems more likely due to the relations between SAIC, MG Motor’s parent company and Volkswagen in the international market. But still, there is no official announcement.  Neither of the companies has commented anything officially in this respect. Mahindra has denied stating it as rumors. MG Motor has gained immense popularity due to its impressive offers on products. 

In accordance with the recent update in FDI norms, MG with its Chinese Lineage, the company has to get approval or clearance from DPIIT to make a fresh investment. It avoid the tedious process MG motors is looking for work-on-contract. MG targets in manufacturing its own products at other automobile units. The British origin MG lines up a full-size premium SUV- Gloster, a flagship product in India.

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