MG Motor India Plans Stake Divestment and Expansion with Electric Vehicles.
A majority of MG Motor India’s operations in the nation are going to be sold. According to a report in Autocar Professional, it is having conversations with potential Indian partners to that purpose. Shanghai Automotive, the biggest automobile manufacturer in China, is the owner of the British-made MG Motor India.
In 2023, the details of the divestment’s final announcement will be made public. In addition, the article stated that MG Motor India is thinking about putting its company on Indian stock exchanges.
Plan 3.0 by MG
The Business sale is in line with MG’s 3.0 strategy for the nation, which is set to take place between 2025 and 2028. Investment of Rs 5,000 crore is required for the plan, which will be used to grow MG’s production capacity by setting up another manufacturing plant in Halol, Gujarat.
The Investment is expected to expand the company’s present manufacturing capacity of 180,000 units to 300,000 units, Autocar Professional reported. As a part of its expansion plans, MG is likely to roll out four to five new vehicles.
All of these vehicles will feature an electric powertrain. These new electric vehicles will be manufactured at the second plant in Halol which is likely to generate 20,000 jobs, the report added.
The Investment is expected to expand the company’s present manufacturing capacity of 180,000 units to 300,000 units, Autocar Professional reported. As a part of its expansion plans, MG is likely to roll out four to five new vehicles.
All of these vehicles will feature an electric powertrain. These new electric vehicles will be manufactured at the second plant in Halol which is likely to generate 20,000 jobs, the report added.
Where is MG going?
Rajeev Chaba, CEO Emeritus of MG Motor India, explained MG’s strategy for India, stating that “the goal is to Indianize the operation.” In 2023, the first step will be revealed. In 2-4 years, we intend to dilute our holdings so that Indians will hold the bulk of the stock. The Board, Management, Ownership, and supply chain will all be Indianized. In the upcoming years, an Indian partner will own the majority of the stock. In accordance with its vision statement, MG is making efforts to give Indians control over the Government. Chaba previously served as CEO before being recently named CEO Emeritus.
The Business also promoted Gaurav Gupta to Deputy MD, where he would be in charge of revenues. Biju Balendran was appointed as Deputy MD who will oversee the cost and plant operations at MG, the report said. Encourage the use of sustainable energy technology and domestic production
In a news release, MG emphasized its dedication to supporting India’s efforts to establish itself as a manufacturing hub. It also emphasized MG’s intentions to spend money on eco-friendly technologies. A key component of MG’s vision for India is the development of hydrogen fuel cells and cell production, in addition to assisting the country’s transition to electric vehicles.
MG also discussed enhancing domestic EV component production through joint ventures or partnerships with outside producers. MG Motors’ 2.0 strategy and current position in India. MG is now operating its 2.0 facility. In essence, the proposal aims to increase MG’s manufacturing capacity from its current 70,000 units per year to 120,000 units per year. The business intends to market 80,000 to 100,000 units in 2023. In addition to that, the company wants to be net income positive by the end of the year.
MG entered the Indian market in September 2017 by taking charge of General Motors’ old plant in Halol. The plant has acted as MG’s manufacturing hub for the last four to five years. However, the old factory has its limitations and cannot cater to MG’s expansion plans. It is for this reason that MG is contemplating a second plant in India.
