[wheelguy]

MG Motor India is planning on setting a new manufacturing plant, their second in the country.

SAIC-owned MG Motors took a bit of conservative approach in India by opting to purchase a brownfield plant (already built) to set up its shop. As it turned out, the MG Hector managed to strike a chord with the Indian audience with its fresh appeal and abundance of features.

Speaking to LiveMint, MG Motor India’s president and managing director Rajeev Chaba stated that with the current growth rate, the Halol plant is estimated to reach its maximum capacity utilization in about 2 years. He also added that the automaker is considering greenfield or brownfield facility without ruling anything.

However, SAIC’s compatriot Great Wall Motors is also reportedly in advanced talks with GM India for a potential deal to buy the Talegaon plant. A competition between two eager and cash-rich Chinese auto-giant to buy the factory could just help GM wrap up its Indian operation with a minimal financial damage.

On the other hand, if MG Motor decides to go with a greenfield facility, it could possibly make use of the land it owns beside its Halol facility. With new products and export operations planned, MG India looks set for an exciting few years.

“Our current capacity can be expanded to maximum 100,000 units. We are considering both greenfield and brownfield options and are not ruling out anything," Chaba said.

“We also have land beside our current facility," he said adding that “this new investment will show our commitment to the Indian market".

Mint reported on 10 November that SAIC Motor and Great Wall Motors Co. Ltd, two of China’s biggest automakers, are in talks with General Motors to acquire the Detroit carmaker’s last remaining factory in India, located at Talegaon in Maharashtra.

If demand stays strong after the introduction of Bharat Stage VI emission norms from 1 April, the company might ramp up monthly production to 4,000 units and also start vehicle exports from India, Chaba said.

Link1, Link2