MG Motors to bolster Halol Plant capacity by the next year
MG Motors launched smart and suave vehicles for Indian consumers a few years back that was an instant hit. These cars were among the top-of-the-line SUVs in India that were in high demand along with offerings from the Hyundai and Mahinda XUV series. MG Motors offers vehicles deeply infused with technology to make your driving experience much superior to what you get in a normal car. Despite the impending global chip shortage, the brand has decided to pump almost 2500 crores to their manufacturing facility at Halol, Gujarat.
The acting president and managing director of MG Motors, Rajeev Chaba explained that the company had already added 3000 crores this year to strengthen production and will pump in 2500 crores the next year. This makes a whopping 5500 crores investment to the production line in just two years. MG Motors reported a 20 percent growth last year and is targeting a 75 to 100 percent growth in the coming year. That seems like an impossible goal but soaring profits amid the pandemic prove that the demand for automatic SUVs is on rising.
He stated that the semiconductor shortage doesn’t put much strain on the production of vehicles. The automobile industry accounts for only 10 percent of semiconductor usage and there have been some difficulties but not anything that could halt the production line for good. The actual obstructing is the logistics industry that is severely affecting production. With changing guidelines and delayed shipments, the automobile industry has to wait for many days and sometimes even months to land a shipment of important components. He says that it is improving with each day but the production isn’t up to speed as they would like it to be.
As for the sales, Rajeev Chaba stated that surviving the year 2020 was the biggest challenge. Comparing this year’s summer season with the last month he explained that after March 2020, the sales continued to decline rapidly till July after which both the production and the sales jumped as the festival season came close. Marriage season also saw a boom in sales and even working professionals began preferring personal vehicles as compared to public transport and cabs. This year’s July month alone has garnered over 4255 sales and continues to grow in August as well. At this rate, MG Motors will easily fulfill its sales targets.