NEW DELHI: MG Motor is planning to invest approximately Rs 4,000 crore for its second manufacturing facility as it plans to increase its manufacturing capacity to 3 lakh units per annum. The British brand owned by China’s SAIC is in talks with several state governments for the same, including Gujarat where its first plant is located.
The company, which is expanding the annual production capacity of its current plant at Halol in Gujarat to 1.25 lakh units by 2023, is looking to add another 1.75 lakh units capacity from the second plant in the next two years.
“Beyond 1.25 lakh (at Halol), we need a second plant. It can be at Halol, and we are in touch with the Gujarat government for some additional land. Also, we have been approached by some other states. So, we have started our due diligence now about the location of the second plant.
We are meeting some other states as well as the Gujarat government There were some offers for existing brownfield plants. We have not ruled that out. I think by June-end hopefully, we should be able to finalise the second plant,” said MG Motor India President and Managing Director Rajeev Chaba.
In terms of funding of the second plant, Chaba said the company is considering several routes, including the ECB (External Commercial Borrowing) and FDI (Foreign Direct Investment).