MG says sustaining business operations will be challenge for auto firms in 2022

MG Motor India has said that it is witnessing signs of positive consumer sentiment due to pent-up demand and expects the demand to increase in the coming year.To meet high customer demand, the company is investing to enhance the plant capacity to reduce the waiting time further.
By HT Auto Desk
| Updated on: 26 Dec 2021, 03:57 PM
MG Motor India says that its ZS EV gets an average of around 700 bookings per month in the country.
MG Motor India says that its ZS EV gets an average of around 700 bookings per month in the country.

The biggest challenge that the automobile firms will face in 2022 will be to sustain business operations as well as to ensure financial health amid various challenges such as global semiconductor shortage, a top MG Motor India official told PTI.

While the domestic market is witnessing an increased demand, it is also impacted by the global semiconductor shortage, which has hit production activities of various OEMs around the world.

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"With the industry having exhibited resilience over the last two years, we are looking towards 2022 with cautious optimism," said MG Motor India President and Managing Director, Rajeev Chaba.

(Also read | MG Motor eyes more affordable EVs for India, expects demand for cars to persist)

He added that the situation will remain fluidic in 2022 due to unpredictable factors such as Covid-19, global semiconductor shortage, freight cost and rising input costs. He also noted that the company is putting efforts to meet the high customer demand and is investing to enhance the plant capacity to reduce the waiting time further. "The company is trying to meet the growing demand and working towards strengthening the MG family in India," he said.

(Also read | MG Motor India successfully recycles its first electric vehicle battery)

Chaba highlighted that MG Motor India has been witnessing signs of positive consumer sentiment due to pent-up demand and expects the demand to increase in the coming year. The company witnessed a year-to-date growth of 56 per cent by selling 37,723 units during the January to November period as compared to 24,152 units sold in the same period last year. However, the company's production level currently remains impacted due to parts shortage and might remain the same in the next quarter as well.

Speaking about the electric revolution in the auto industry, MG said that it will soon bring its second EV to the country thanks the government's clarity on its EV road map. "We are aligned to play our part in seeing that the direction meets reality sooner rather than later," Chaba said.

First Published Date: 26 Dec 2021, 03:55 PM IST
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