China’s most successful car company is planning to launch its first car in India as the company will launch has decided to launch in Q2 2019. The MG’s parent company SAIC (Shanghai Automotive Industry Corporation) is one of the oldest state-owned Chinese manufacturers. It has long-standing JVs with VW and MG in China and is the largest-selling manufacturer in China as with nearly crossing 7 million units per year. MG’s SUV is very popular in China and it gives a tough competition to Chevrolet, Dong Feng, and FAW.
MG’S CAR RUMORS, LAUNCH DATE AND SPECS
The MG is going to launch a SUV in India, which will give tough competition to Mahindra’s XUV 500, jeep compass and many more. The SUV is rumored to have a size larger than a Hyundai Tucson, and will possibly offer seven seats as well and it’s likely to be the ZS or the GS but we’ll know more soon. The vehicle will be re-engineered for the Indian market to match the demands of the public of INDIA. The vehicle will be priced little less than the international market as the company will reduce some features in the basic model and the top model will have all the sensors, airbags, infotainment system with apple car play and android auto. The basic will version will miss some of the specs as it will be at the budget price. The company has also promised that it will boast of the very high level of local content and this will be in tune with the Make-In-India model of the Government of India. The company is also looking at electric, plug-in hybrid and fuel cell technology for India and yes there will be feasibility studies done in the coming years.
MG CAR SPECS
- LAUNCH – OCTOBER 2019
- PRICE – RS 5.5 LAKH – 9.5 LAKH
- ENGINE – 1.2 L PETROL, 1.3 L DIESEL
The MG 3 is a hatchback where there is enough space for 5 people to sit. The MG 3 will rival Maruti Baleno and Hyundai elite I 20. The MG 3 in the UK have 106 HP 1.5 L petrol and a 1.3 L diesel engine. The specs in the UK version might defer from the Indian version according to the Indian market and consumer needs.
FUTURE OF THE COMPANY IN INDIA
The MG is hoping to see a good start in India as it has started producing its cars for the need of the Indian market. The company will invest over Rs 5,000 crore till 2025 to establish its presence in the country. The company is planning to set up a factory in halol(GUJRAT) from the current 80000 – 100000 units. The company will hire 1000 employees by the end of this year and would further increase manpower to a total of 2000 employees.
Rajeev Chaba, MG Motor India president, told ET, “Two years from the start of the sale, we will have to take that call (on expanding production capacity at Halol)… Multinational companies have less than 20% market share combined after 15-20 years of existence… So, I think we need to be careful about what kind of commitments we make because we need to walk the talk. (reference ET). The MG will start many service point over the next few years, so it will be interesting to watch the growth and the establishment of the company in INDIA.