CHENNAI: Chinese automobile sector giant SAIC Motor Corporation is pouring in significant investment into its first plant in India. Entering the Indian market through MG Motor India Pvt Ltd, which bought over the GM plant in Halol, the Chinese group is expecting to be rolling out as many as 80,000 units out of the facility in the first phase itself.
The managing director of the company Rajeev Chaba said on Tuesday that within the next three years the company will invest more than Rs 2,000 crore at the plant which it acquired from General Motors three weeks ago. “In the first phase, we’ll be able to roll out 75,000 to 80,000 units from the plant for the Indian and South Asian markets,” said Chaba.
The volume expected to come out of the plant by the company indicates its plans to make it a significant manufacturing location -- for both Indian and overseas markets.
“SAIC is expecting the MG brand to make a mark in the region. The volumes predicted indicate that. How well it will do will depend on whether they are able to successfully meet the requirements of the Indian customer, which are unique compared to other markets,” said a senior analyst.
Chaba also touched upon the policy focus on electric mobility, pointing out that the car industry is evolving and the “government’s direction about electric vehicles is good and we along with along other companies will participate”.However, he raised reservations about the lack of infrastructure for electric vehicles.