JSW MG Motor to Launch 5 New Models, First CUV Coming by September.

JSW MG Motor India is set to launch five new vehicles over the next year, starting with a premium crossover vehicle (CUV) in September. The company is also expanding its manufacturing plant in Halol, Gujarat, increasing its capacity from 100,000 units to 300,000 units annually, according to a top official.

“We have five new products approved from headquarters in China to be launched in the next year. Two of these will be premium products, with the first launch coming in the festive period. It’s a crossover (CUV) – offering the comfort of a sedan and the utility of an SUV,” said Rajeev Chaba, Chief Executive Officer Emeritus at MG Motor India.

Chaba noted that while the passenger vehicle market experienced a slowdown in the first quarter of this year, growth is expected to pick up in the coming quarters with the festive season and new launches from original equipment manufacturers (OEMs). However, he also highlighted challenges such as high inventory levels at dealerships and elevated container prices due to the Red Sea crisis.

“There is a bloodbath for dealers right now. MG’s dealer inventory is 35-40 days, lower than the industry average of around 60-65 days. We aim to reduce our inventory to under 30 days and re-energize our dealer network. We also plan to expand our dealer network to attract demand for the new products we are launching,” Chaba said.

Regarding network expansion, Chaba revealed that the company is adding 200 more touchpoints, aiming to reach 600 in the next two to three years. This is in addition to increasing production capacity at its Halol plant.

“As we speak, we are establishing our second plant in Halol, boosting our capacity to 300,000 cars a year. With this increased capacity, we need products to fill the plant. That’s our plan for the next three to five years,” he explained.

Chaba also commented on the current GST rate structure for passenger vehicles in India, calling it outdated and in need of alignment with new developments in the auto industry, particularly with new-age vehicles featuring different fuel options.

“Previously, we had GST structures based on car size and engine capacity, like sub-four meters, 1.2-litre engines, and 1.5-litre engines. Those days are gone. Can we revolutionize policymaking? Can we focus on what’s important for the country and the consumer?” he questioned.

Regarding incentives for hybrid vehicles, Chaba advocated for them to be given only to strong plug-in hybrids capable of running as independent battery electric vehicles, rather than those using batteries solely to improve fuel efficiency.

HBL