MG Motor India Open To Listing By 2028
The Indian arm of Chinese owned MG Motor India, a SAIC Motor Corp company, has laid down the roadmap for expansion and indigenisation of its Indian operations over the next 4-5 years. Terming it as MG 3.0, Rajeev Chaba, MG Motor India CEO Emeritus when asked about the option to list the company on Indian stock exchange told BW Businessworld, "Listing the company is also part of the plan but that may happen more towards 2028 in a step-wise manner. First step is to get Indian shareholders on board as majority shareholders, it could be HNI's, domestic financial institutions, dealer network and employees. Next step will be listing."
As is known, MG Motor India has a current production capacity of 120,000 cars per annum at its Gujarat plant in Halol. In the fiscal just ended, it could sell 48,000 units. "In the second phase called MG 2.0 (2023-2025) a lot of work is required to scale up and reach the current capacity of 1.2 lakh units. If we achieve that quickly, that alone will be a sustainable business model by itself. How many car makers in India are selling 1.2 lakh units in a year?" asked Chaba.
The target for current and next fiscal year is to reach sales figures of 80,000 units to 100,000 units by 2025.
The automaker said its aims to launch 4-5 new cars in the country, with focus on EVs. The company expects its EV portfolio to contribute up to 65-75 per cent of total sales in India and is doing everything to build an ecosystem for EV so that more components could be sourced locally.
On the plans to raise Rs 5,000 crore as part of MG 3.0, Chaba said that will come in different stages and that will be part of the dilution of stake in favour of Indian majority ownership. In the third-phase, MG Motor India intends to expand its existing manufacturing facility at Halol, Gujarat by adding the second plant with an annual capacity of 1.8 lakh units. Together, that will take the combined annual capacity of MG Motor India to 3 lakh units. But that will happen between
In the first-phase called the 'investment phase' starting 2017-2022, MG Motors India established its base, launched half-dozen cars like Hector, Astor, Gloster and ZS EV and Comet, invested over Rs 4,000 crore in India including in buying and expanding the Halol Plan in Gujarat (earlier owned by GM Motors India)
Raising additional capital from the parent Chinese company has been a challenge for MG Motor in India. That is one reason for the proposed restructuring plan announced by the company said an auto analyst. As per industry sources, the automaker has been waiting for government approval for around two years now and has therefore started looking for other options to raise capital.
Elaborating on its roadmap, the company said it has plans to set up its second manufacturing plant in the country, taking its installed capacity to 3 lakh units per annum and roll out new products for the domestic market, including electric vehicles, as part of its five-year business roadmap in the country.
Go Green
The automaker said it is also exploring setting up of cell manufacturing and hydrogen fuel-cell technology through joint ventures or third-party manufacturing. With expansion plans in place, the automaker aims to have a total of workforce of 20,000 by 2028 at its Gujarat plant.
“The company’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 localisation, 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,” Chaba stated.
He further said that the automaker is committed towards making a positive impact on society. Chaba also highlighted the company’s focus on promoting gender diversity. The company said it aims to train 1,00,000 students under its ‘MG Nurture’ programme. The students will be trained in EV, ADAS and connected car technologies.
