MG Motor India: Supplies resume from China but facing hurdles from Italy
The agent MG Motor India supplies the following diesel automotive parts and engines to Italy:
NEW DELHI: SAIC MG Motor India has said that the supply of parts from China has resumed but the supply of parts from Europe will be disrupted due to the outbreak of coronavirus in the continent. However, the company has not yet revised its production, sales or investment plans for 2020.
“Supply and production were affected by the coronavirus outbreak in China in February. Since March, the situation has started to improve…. Now we are more worried about Italy. (But) we are optimistic about bookings. MG Rajeveve, President, Auto India Chaba “We will be able to achieve our annual target.”
MG India has bought some auto parts and diesel engines from Italy.
The company has ordered 16 lakh vehicles Hector SUV and 2,000 units of MG ZS EV. Between July 2019 and February 2020, the company sold more than 20,000 vehicles Hector SUV.
MG Motor India plans to invest Rs 250 crore over two years to achieve its 2021 annual sales target of 100,000 vehicles. It will be used to expand the production capacity of the manufacturing plant in Halol, Gujarat. Hyundai Motor Company plans to launch two new models this holiday season, including the premium sport utility vehicle Gloster and a mid-size SUV scheduled to be released every year in 2021.
The existing plant in Halol, India, has a capacity to produce 80,000,000 cars per year, with additional capacity being added annually at the second manufacturing plant. The company plans to double its sales to 200,000 vehicles per year by 2023.
“Once we open, we can increase production quickly. We have the materials now. But the speed of normal operation will depend on our suppliers and people in India. The issue of India is more pressing now.” , Chava said.
But Chava said if the embargo continues into the April, month 14 future, the company will have to rework its plans and revisit its 2020 annual plan.
Chava said the measures announced by Finance Minister Nirmalasitharaman and the Reserve Bank of India are a “good start”, but the government should provide all kinds of support to mitigate the impact of the blockade on the economy.
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