MG Motor India targets sales of 100,000 units by 2021

NEW DELHI: MG Motor India will invest Rs 2,500 crore over the next two years to drive in two new vehicles and expand production capacity at its Gujarat facility to attain sales of 100,000 units by 2021.

“We will launch a high-end sports utility vehicle, Gloster, in the festive season this year. This would be followed by a midsize SUV in 2021,” MG Motor India president Rajeev Chaba told ET. “With these four products, we aim to sell 100,000 vehicles annually in 2021.”

The company aims to double sales volumes to 200,000 units by 2023.


MG Motor India’s existing facility at Halol can produce 80,000 vehicles every year. A part of the investment of Rs 2,500 crore, earmarked for the next two years, would be used to expand production capacity to 100,000 units. Beyond that fresh capacity would come in the from a second manufacturing unit.

Chaba said the company has initiated discussions with several state governments for a suitable location for the new plant. “We are considering several things. We are looking at exporting vehicles out of India to right-hand drive markets across the world,” Chaba said, adding that a decision on the capacity and investment required at the new plant will be taken shortly.

For now, MG Motor India has around 18,000 pending orders for SUV Hector. The company has another 2400 bookings for the ZS EV.