MG Motor plans investment of 2,500 crores to increase Halol plant capacity 

MG Motor already invested ₹3,000 crores in the factory.MG Motor is expecting its sales to grow by 100 percent compared to last year despite the worse
MG Astor is the upcoming SUV from the brand.
MG Astor is the upcoming SUV from the brand.

MG Motor India has plans of investing 2,500 crore by the end of next year to increase the production capacity at its Halol plant located in Gujarat, a top company official told news agency PTI. Currently, MG Motor is also gearing up to launch its mid-size SUV MG Astor. MG Motor is also expecting its sales to scale up by 100 percent compared to last year despite the worsening global semiconductor shortage that is going to continue for another six months.

MG Motor India president and managing director Rajeev Chaba informed that the company has already invested 3,000 crores. “We have done an investment of 3,000 crore already, and by the end of next year, we will do another 2,500 crore. We will reach a total of 5,500 crore," he said.

Also check these Vehicles

Find more Cars
Mg Zs Ev (HT Auto photo)
50.3 kWh 140 Kmph 419 Km
₹ 21 - 24.18 Lakhs
View Offers
Mg Gloster (HT Auto photo)
1996.0 cc Diesel Both
₹ 29.98 - 37.28 Lakhs
View Offers
Mg Astor (HT Auto photo)
1498.0 cc Petrol Both
₹ 9.98 - 17.90 Lakhs
View Offers
Mg Hector Plus (HT Auto photo)
1956.0 Multiple Both
₹ 17.50 - 22.43 Lakhs
View Offers
Mg Hector (HT Auto photo)
1956.0 cc Multiple Both
₹ 15 - 22.20 Lakhs
View Offers
Mg 4 Ev (HT Auto photo)
64kWh 160 Kmph 350 km
₹ 30 - 32 Lakhs
View Details

Also Read : MG shares glimpse of Astor SUV, reveals new Drive AI technology

This investment will push the capacity of the company as it is preparing to bring new models in the market. However, Chaba mentioned that the shortage of materials supply, especially that of semiconductors, has constrained production at present. “Hopefully by quarter one next year, depending on materials supplies, we will start producing 7,000 units a month," he said, adding the company's current capacity is around 4,500 units a month.

MG Motor India, in 2018, had declared investment plans of 5,000 crores for five to six years for its Halol plant to increase its annual production capacity of 80,000 to 1 lakh units in the first phase and then take it up to over 2 lakh units in the second phase. The MD also informed that had it not been for the constraints in the supply chain, the company could have produced up to 5,000 units a month. “When we add Aster to it (the product portfolio), we will (have to) increase the capacity," he added in the report.

Also Read : MG Motor retails 4,225 units in July, registers 100% sales growth

Commenting on the semiconductor shortage issue, Chaba stressed that the situation has gone from bad to worse and due to the pandemic, there has been a spike in demand for semiconductors from almost every industry, however, the automotive industry accounts for only 10 percent of it.

Last year, MG Motor India sold a total of 28,162 units, which included 25,834 units of Hector SUV, 1,243 units of ZS EV and 1,085 units of premium SUV Gloster.

(With inputs from PTI)

First Published Date: 23 Aug 2021, 09:20 AM IST

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.