The SAIC-owned company’s plan to raise funds for expansion and to strengthen its presence in the EV segment had hit a wall amid increased government scrutiny of Chinese investments in India.
Led by a good response to the ZSEV and launch of another EV model later this year in the ₹10-15 lakh segment, MG sees the share of EVs in its overall volume more than doubling to 25-30% by 2023-end.
The British brand, which entered India’s competitive passenger vehicle market in 2019, plans to ramp up capacity at its Halol plant to 140,000 units per annum by the end of this year from 80,000 units now.
“If all goes well for us, we should see a growth of 80-100% in our volumes this year,” Rajiv Chaba-president and managing director of MG Motor India, told ET. “Last year we sold around 50,000 units; this year we should sell anywhere from 80,000-100,000 units.”
Better availability of semiconductors coupled with robust demand would fuel growth, he said.
At the ongoing Auto Expo, MG launched the new Hector and showcased a flurry of green technology SUVs, including its MG4.Chaba said the company will achieve its production target by way of de-bottlenecking. This will help defer the immediate need to raise funds for expansion and will also enable the automaker to be profitable sooner than expected. “We have hiked capacity to 120,000 and there’s scope (within the same facility) to expand more,” said Chaba. “By 2023-end, we should have a capacity of 135,000-140,000 units per annum.”