NEW DELHI: MG Motors expects its India operations to become profitable by the close of this year as the company is looking to nearly double its sales in the market, aiming to grow faster than the industry estimates of 5-8% growth.
Rajeev Chaba, MD of the company, said that MG’s business had been impacted last year by shortage of components, as well as pressure on fund-raise, but business is likely to move strongly this year as it is confident of tackling both the issues.
“If everything goes as we have planned, we will breakeven by the close of 2023 and make a small profit. Importantly, we will achieve this in only the fourth year of our operations here,” Chaba told TOI. MG, a British car brand owned by Chinese auto giant SAIC, started off its business in India on a strong note but soon faced tough times as its funding (from the parent)began to dry up, following tough measures against investments flowing in from countries that share land border with India following Indo-China tensions.
The company has not been able to expand rapidly which also impacted its plans, though it is looking to induct partners soon to get funding.
Chaba said that MG sold 48,000 units in 2022, which included models such as Hector, Gloster, Astor, and ZS (electric) SUVs. “We are confident that with improved suppliesand launch of a new model, the mini Comet electric, we will have sales that can go up to 1,00,000 units. While the market is also becoming challenging, we are confident that demand for our products will remain strong in 2023. ”
MG currently makes its cars in India at a factory in Halol, Gujarat, which it had bought from General Motors as the latter exited the Indian market. Chaba said that the factory has the potential to have a peak capacity of 1. 2 lakh units annually.
While MG remains confident, the carmaker has increasingly faced competition from other companies such as Mahindra & Mahindra, Tata Motors, and Toyota that have been launching competing SUVs. There has been growing competition both in the petrol/diesel categories as well as electrics. “While competition is a reality, we feel there is a scope for multiple players to co-exist,” Chaba said.
Rajeev Chaba, MD of the company, said that MG’s business had been impacted last year by shortage of components, as well as pressure on fund-raise, but business is likely to move strongly this year as it is confident of tackling both the issues.
“If everything goes as we have planned, we will breakeven by the close of 2023 and make a small profit. Importantly, we will achieve this in only the fourth year of our operations here,” Chaba told TOI. MG, a British car brand owned by Chinese auto giant SAIC, started off its business in India on a strong note but soon faced tough times as its funding (from the parent)began to dry up, following tough measures against investments flowing in from countries that share land border with India following Indo-China tensions.
The company has not been able to expand rapidly which also impacted its plans, though it is looking to induct partners soon to get funding.
Chaba said that MG sold 48,000 units in 2022, which included models such as Hector, Gloster, Astor, and ZS (electric) SUVs. “We are confident that with improved suppliesand launch of a new model, the mini Comet electric, we will have sales that can go up to 1,00,000 units. While the market is also becoming challenging, we are confident that demand for our products will remain strong in 2023. ”
MG currently makes its cars in India at a factory in Halol, Gujarat, which it had bought from General Motors as the latter exited the Indian market. Chaba said that the factory has the potential to have a peak capacity of 1. 2 lakh units annually.
While MG remains confident, the carmaker has increasingly faced competition from other companies such as Mahindra & Mahindra, Tata Motors, and Toyota that have been launching competing SUVs. There has been growing competition both in the petrol/diesel categories as well as electrics. “While competition is a reality, we feel there is a scope for multiple players to co-exist,” Chaba said.
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