“We grew by 77 per cent in 2020 when the industry had actually contracted 18 per cent. This year, we expect to continue the momentum and increase sales by 75 per cent,” Rajeev Chaba, president and managing director, MG Motor India said.
It invested Rs 3,000 crore till now in India. “We will invest Rs 1,500 crore more by the next financial year,” Chaba said. This comes amid higher scrutiny by the government and a growing sentiment against Chinese investments. General Motors will close the factory after its deal to sell it to Chinese automotive company Great Wall Motors could not be concluded as regulatory approvals did not come through.
But Chaba said there hadn’t been any major impact of the border tension between India and China on his business. “I don’t think there has been any material impact. I don’t see any big risk from that,” Chaba said. “In the short term, you hear disruptions and can’t help that. There are always some customers who don’t want to buy products from a certain country but in the global automotive industry, consumers decide based on various parameters.”
MG Motors on Thursday launched the seven-seater version of its premium SUV, Hector, at a price of Rs 13.34 lakh and the product will be available with petrol, diesel, and mild hybrid powertrain options. Hector was the first product of the firm in India and helped MG eclipse M&M and Tata Motors in the premium segment.
It plans to increase localisation of products, which would mean higher manufacturing in India, and aims to assemble battery lines locally. The company, which has 220 dealerships in 137 cities, plans to increase it by 100 by the end of 2021. “We are bringing in technology, and also intend to increase localisation. The volumes are low. Therefore, a ramp-up in localisation makes sense for the Hector, in which we have decent volumes,” he said.