Covid-19: Lockdown in Europe could affect MG Motor India

The Fiat Chrysler Automobiles (FCA) plant in Italy has been shut down due to the outbreak of the Covid-19 pandemic. This is likely to affect MG's production in India as the carmaker sources its diesel engines from FCA.

The FCA-sourced 2.0-litre diesel engine that powers the MG Hector uses a lot of components that are imported from Turin, Italy.

It has been reported that besides the powertrain, other components from Europe are assembled in China and then shipped to India. The lockdown in Pune is also expected to affect production as most of the carmaker's suppliers are present in the Chakan-Ranjangaon belt.

According to Rajeev Chaba, President and MD, MG Motor India, the company has enough inventory of diesel engines to last till the end of June 2020. However, if the lockdown in Europe continues, diesel powertrains will be in short supply and the carmaker will have to aggressively push its petrol versions.

Source