MG Motor India planned to invest nearly Rs 4,000 crore in its second manufacturing unit.
The company is expanding the annual production capacity of its plant at Halol, Gujarat, to 1.25 lakh units by 2023, is looking forward to adding another 1.75 lakh units capacity from the second plant and taking its overall production capacity to 3 lakh units per year in the next two years.
President and Managing Director of MG Motor India, Rajeev Chaba, told the media that the company is looking to close an investment of Rs 4,000 crore for the second plant. It will take the total capacity to 3 lakh units per year with another 1.75 lakh units.
The company plans to invest Rs 4,000 crore for its second manufacturing plant.
He said the company is considering several routes, including external commercial borrowing (ECB) and Foreign Direct Investment (FDI), and other investors for funding the second plant.
In 2021, the company announced an investment of Rs 2,500 crore to increase production capacity at its Halol plant.
Chaba said that the company has increased the capacity of the Halol plant and invested more to increase the capacity from 70,000 per year to 1.25 lakh per year from next year.
He said that in 2021, the company had sold 40,000 vehicles. This year, the company has a severe shortage of chips but plans to close with 70,000 units.
He said that to reach these production targets at the plant, the company introduced the second shift this month, and the plant will produce 1.25 lakh units per year from next year on a three-shift basis.
Currently, the company produces four models, Hector, Gloster, Astor and ZS EV, from the Halol plant. Increasing the capacity will increase the supplies of these vehicles.
Chaba said that the fifth, which will be launched by March-April next year, is a small electric vehicle (EV) priced between Rs 10 lakh to Rs 15 lakh. These five products should look after the 1.25 lakh units at the Halol plant, and then the sixth product has to come in at the new plant.
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