Second MG plant to be focused on small cars and SUVs - IAB Report

22/03/2020 - 09:30 | ,   | Sagar Parikh

MG is planning a second manufacturing facility in India. understands that the second plant will be focused on small cars and SUVs.

MG 3 facelift front three quarters
India may get the next-gen MG 3 hatchback.

Speaking to earlier this month, Rajeev Chaba, the President and MD of MG’s Indian subsidiary, revealed the details about the company’s second plant in India. Chaba disclosed that the company is yet to decide whether it will be a greenfield or any other type of facility and that it will take a few more months for the same. Asked how strong is the requirement for another plant, below is what he said:

If everything goes well, by the end of next year Halol plant should be full.

MG’s Halol plant currently has an annual production capacity of 80,000 units but this number can be increased if required. Further during our interaction with Chaba, we asked if we will see more affordable models coming from the second plant. Below is what he answered:

We all know 70% of the Indian industry is below 4 metre, as volumes come from there. So, if we go for the second plant it means that we are talking about having our volumes more than 1,00,000 and that more volumes have to come from in the 4 metre segment. So yes, I think second plant business case has to be towards the cheaper products and the lower-end.

The first cheaper models manufactured at the second MG plant in India may include a small SUV like the Hyundai Venue and a small hatchback like the Hyundai i20, maybe the next-gen MG 3. Eventually, EVs may also be made here, including the MG E200.

MG 3 facelift side angle
MG is unlikely to launch any sub-4 metre model in India until the second plant is ready.

MG’s current line-up comprises the locally manufactured Hector priced from INR 12.74 lakh* and the locally assembled ZS EV that is priced from INR 20.88 lakh*.

Later this year, MG will launch the Hector Plus, a three-row version of the Hector, and the Gloster, a circa-INR 50 lakh full-size SUV. The company has confirmed the G10 full-size MPV also for our market, and that model could be priced from around INR 20 lakh (ex-showroom). The Hector Plus will be manufactured at the Halol plant, while the Gloster and G10 will likely be assembled from imported knocked-down kits at the same facility.

Also Read: MG could launch a hatchback in India by 2022

Stay tuned to for more MG updates and other four-wheeler news.

*Ex-showroom Delhi

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