MG will focus on increasing its production capacity and doubling its portfolio to 10 vehicles as new electric vehicles are planned
With Great Wall Motor booting its operations and a one billion USD plan for India, another firm with Chinese owners, MG Motor, looks to make giant strides to make a strong impact in the Indian market. The SAIC-owned brand currently sells the Hector, Hector Plus, Astor, ZS EV and Gloster and is working to rope in more investors as part of its expansion plans.
The British manufacturer already has been in talks with many investment firms already to raise 300 to 600 million USD for the domestic market as the direct foreign investment proposal has not seen the light as it has to pass through a number of hurdles from the central government. The agreement is said to be done and dusted before the end of this fiscal according to a report.
As part of its expansion plans, MG will focus on increasing its production capacity and doubling its portfolio to 10 vehicles as new electric vehicles and higher local content are targeted with an investment close to Rs. 5,000 crore. To raise funds, a consulting firm based out of the United Kingdom has been appointed and the company is open to partnership options.
MG is exploring opportunities for contract manufacturing, greenfield expansion and potential acquisitions. More importantly, it is working on establishing an EV subsidiary to attract high-profile investors from several global private equity firms. TPG’s investment in Tata Motors’ electric vehicle business is set as the benchmark for raising funds.
The brand will increase its production capacity twice at Halol this year before expanding it further to three lakh units over the next few years. MG wants almost one-third of its total production output to be EVs and it would require new investments. It has commenced the road testing of its affordable EV in India already and is based on the Wuling Air EV.
It will undergo changes specifically for the domestic market and has an overall length of under three metres with a wheelbase of 2,010 mm. It could get high-end tech and a modern interior loaded to the gills. Expect the zero-emission vehicle to make its local debut at the 2023 Auto Expo.