MG Motor India, with support from its Indian partner JSW Group, will launch five new cars in the next 12 months. The first car, a new electric crossover, will debut in September or October, said Rajeev Chaba, chairman emeritus of MG Motor India.
Three of the new cars will be for the general market, and two will be through a new premium channel. MG Motor is also building a new factory in Halol, Gujarat, aiming to produce 300,000 cars annually in the next three to five years.
“We are expanding fast and increasing our production capacity,” Chaba said. The first car to be launched will be a feature-rich, intelligent crossover SUV. Chaba noted that while passenger vehicle sales have slowed, he expects growth to pick up, especially with the new car launches. However, he expressed concern about high dealer inventories, calling the situation tough for dealers.
MG Motor’s dealer inventory is currently 35-40 days, which is lower than the industry average of 60 days, but they aim to reduce it to under 30 days and boost the dealer network to meet new product demand. Chaba predicts the passenger vehicle market will grow 7-8% this year, higher than the 2-3% industry estimate. He also expects electric vehicle sales to rise 30% to 120,000 cars this fiscal year. The Comet EV and the ZS EV are already selling nearly 1,000 units each month.
MG Motor India is working to achieve 50% domestic value addition in the Comet EV to qualify for government incentives. Chaba also called for a revised tax structure for passenger vehicles to promote fair competition among different technologies like CNG, hybrids, and electric vehicles. He emphasized the benefits of plug-in hybrids over mild hybrids, which have limited electric capabilities.
