MG Motor India powers its way to 43% growth in 2020 despite challenges at large
MG Motor India retailed a total of 40,273 units in 2021, up by 43% when compared to figures from 2020. While recognizing the challenges that the Indian automotive industry had to face through the course of the year that just went by, MG is continuing to take a cautious yet optimistic approach.
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The launch of Astor SUV was the biggest moment for MG Motor India last year. The first 5,000 units of the vehicle were lapped up in quick time by customers. But the company underlines that demand for its other models in the country remains strong. Hector, its debut product for India, has seen a 21.5% growth in 2021 when compared to figures from 2020. Gloster premium SUV too has witnessed a strong demand since its launch back in October of 2020. And while volumes may still be rather low for electric cars in India, the ZS EV witnessed a 145% growth last year.
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A strong demand is a boon but in current times, it can bring with it its own set of challenges. MG admits that it has a significant backlog and that the company is working towards meeting orders. The global shortage in semiconductor chip has affected almost every automotive brand, taking varying toll on production and supply-chain cycles. “We foresee the situation will remain fluidic due to unpredictable factors – Omicron threat, global semiconductor shortage, and inflation risk due to an increase in material cost. However, resilient demand trends give us a reason to assume cautious optimism," said Rajeev Chaba, President and Managing Director, MG Motor India. "The uncertainty may continue for the first six months of 2022 and will persist in some form throughout the year. MG Motor will constantly be monitoring these factors and aligning its operations to meet the demand."
What would also be very interesting is that MG Motor India has confirmed its plans of driving out an electric car that is more affordable than the ZS EV the company currently sells here. Will it help MG take the fight to the likes of Tata Motors and Hyundai? Time will tell.