MG Motor India is currently selling the ZS EV, Astor, Hector twins and Gloster SUV in the country. The company is reportedly working hard to secure funds locally to begin its next phase of expansion in the country. MG Motor is in talks with close to dozen fund houses to raise $300-600 million locally. The brand’s proposal to bring FDI is stuck with the Indian government, and the local investment deal is expected to be closed before the end of this financial year.
The new investment will be utilised to increase manufacturing capacity and doubling the product portfolio to 10 models. The company will have a big focus on electric vehicles and deep localisation. This will require close to 5,000 crore investment. In fact, MG Motor India has appointed a UK-based consulting firm to help raise funds.
Speaking to ET Auto, Rajeev Chaba, Managing Director MG Motor India said that the company is ready for greenfield expansion or acquisitions & partnering with another brand for contract manufacturing. The company is also exploring setting up an EV subsidiary, like Tata Motors, to bring in new investors.
MG Motor India is all set to double its production capacity in its Halol plant to 1.3 lakh units this year. The production will further increase to 3 lakh units in the next few years. MG Motor India is currently facing supply chain challenges and problems related to restrictions of imports. The company is struggling to ramp up volumes in India and manages to sell close to 4,000 to 5,000 vehicles per month.
MG Compact EV
MG Motor India has started testing its upcoming entry-level electric car. It is expected to be launched in the first half of 2023. The new model will be based on the Wuling Air EV. Internally called the E230, the new compact EV will receive certain India-specific changes. To be positioned as an urban commuter in the crowded cities, the new MG EV is expected to be priced somewhere between Rs 10 lakh and Rs 15 lakh. The new model is reportedly to have a battery pack capacity of around 20kWh to 25kWh, which is likely to offer a real-world driving range of 150km.
Source – ET Auto
