MG will set up its second plant in Gujarat to boost the combined production capacity to 3,00,000 units per annum; most of the upcoming models will be EVs
MG Motor India has today announced its strategic product roadmap spanning five years as it seeks to ‘Indianize’ the business operations ‘for sustainable growth and meaningful impact on the society’. The British manufacturer owned by China’s SAIC will enhance local sourcing and manufacturing across its operations by 2028 through new initiatives.
Through owned or third-party facilities, MG aims to explore cell manufacturing and clean hydrogen-cell technology in India while expanding its production capacity with a second plant in Gujarat and debuting a wide range of zero-emission vehicles along with new ICE offerings are also part of the new agenda as MG looks to consolidate its operations for the betterment of the future.
The key part of the strategy is to heavily localise the models and bring in the latest technologies while increasing the Indian shareholding over the next 2-4 years. MG has confirmed that it will invest over Rs. 5,000 crore and have a workforce comprising 20,000 employees (direct and indirect) by 2028 locally.
The second manufacturing plant will be set up in Gujarat to significantly increase the combined production output to three lakh units from the current 1.20 lakh units. MG plans to launch four to five new passenger cars and achieve 65-75 per cent of its sales from the EV portfolio by 2028, and most of them will be electric vehicles.
To support the widespread adoption of EVs, MG will strengthen local manufacturing of EV components and establish a battery assembly unit in Gujarat while investments in advanced clean technologies including hydrogen fuel cells and cell manufacturing; bolstering local manufacturing of EV parts through joint ventures or third-party manufacturing are also in the pipeline.
Speaking of the new strategy, Rajeev Chaba, the CEO Emeritus of MG Motor India, said, “MG India’s unwavering dedication to India is deeply ingrained in our ethos. As we pave the way for our next phase of sustainable growth, we have outlined a clear roadmap and vision for 2028. Our growth strategy is centred around strengthening localization, aligning more closely with the government’s ‘Make in India’ initiative while innovatively augmenting our promise consistently, and diligently meeting the evolving needs of the market.”
Under the MG Nurture program, the company will invest in talented workforce and nurture the young talent of India. Under this program, MG will partner with 50 institutes to train one lakh students on the latest technologies such as EVs, connected cars and ADAS systems. MG has achieved a 37 per cent gender diversity within its workforce and is looking to increase it to 50 per cent across various disciplines.