MG Motor India Plans Production Capacity Expansion, To Further Invest Rs. 1000 Crores
Firm to first receive permission from the government to make fresh investments here.
MG Motor India has revealed that it plans to invest a further Rs. 1000 crores in order to expand its production capacity, boost localisation levels and launch new models.
The Chinese-owned firm will approach the Department for Promotion of Industry and Internal Trade (DPIIT), due to recent changes in FDI rules, to obtain its approval to make fresh investments in India.
President of MG Motor India, Rajeev Chaba has stated that the firm will either borrow (the amount) or put equity and added that it will follow the process in due time “as and when the need comes”.
Using the fresh investment, MG plans to increase production capacity in its factory at Halol, Gujarat, to about 1 lakh units (estimated) a year. Also, a part of the money would be used to increase localisation, and that includes high-end components as well.
At present, MG Motor India Investment stands at around Rs. 3000 crores and Rajeev Chaba believes that the current anti-China sentiment will not affect it in the long-run. However, he did admit that short-term effects would be felt.
Rajeev also mentioned that the Indian government is doing all the right things, adding that trade does not get affected in the long-term despite countries having their differences.
Meanwhile, reports are circulating that the British brand is looking to setup another manufacturing unit in the country in the future, but it is so far unfounded.
Currently, the brand that sells the Hector SUV and ZS EV here and is getting ready to launch the Gloster full-size SUV in the market.
Source – Timesofindia.indiatimes.com