In a strategic move to embrace a broader market and to spearhead the next growth phase, MG Motor India has announced ambitious plans to delve into the heart of India by infiltrating tier III and IV cities. The automaker has laid out an assertive plan to set up 100 new touchpoints by the end of the current fiscal year. This expansion extends the company’s reach and manifests their goal of selling one million units of passenger electric vehicles by 2030, a period when the total Indian market is anticipated to scale up to 10 million units annually.
This strategy follows on the heels of a significant investment alliance with JSW Group, which joined forces with China’s SAIC to become a joint venture partner. Last month, the company disclosed plans to invest a substantial sum of Rs 5,000 crore, positioning themselves for the booming electric vehicle sector in India.
The quest for a more substantial presence has led MG Motor India to aim for an impressive target of 520 sales and service touchpoints spanning across 270 cities by the end of 2024-25. “There is a very clear roadmap…we have put in place which we are calling as MG 2.0, the next phase of growth for MG Motor India,” remarked MG Motor India’s Chief Commercial Officer, Satinder Singh Bajwa, during an interview with PTI.
The roadmap Bajwa referred to encompasses an array of initiatives including increased production capacity and the introduction of a wider range of models. To support this vision and truly resonate with consumers, the automaker understands the necessity of establishing a trusty presence within the market.
Currently, MG Motor India operates approximately 380 touchpoints, servicing around 170 cities. Bajwa stated, “Now we are very clear that we have to go closer to 300 cities going forward as part of our expansion plan and these 380 touchpoints obviously, will go beyond 500 touchpoints in this financial year.”
To achieve a denser network, MG Motor India is not just counting on existing dealers but is also actively seeking new partnership for network growth. Bajwa highlighted the need to bridge the geographic gap by saying, “While we are fairly well represented in tier one, metro and super metro towns but beyond that in tier three or four towns, presence is missing. That’s the area where we want to really focus on and move forward in those areas and get closer to the customers.”
The company is adapting its strategy by planning to introduce “tailored” showrooms, catering specifically to the rural and smaller urban areas that have been largely untapped. These facilities will offer a diverse mix of vehicles including electric, hybrid, and conventional engines to meet an array of customer needs.
Further propelling MG 2.0, the company is set to ramp up its annual production capabilities, scaling from over 1 lakh units to an impressive up to 3 lakh vehicles. This jump in production will be supported by the establishment of a second manufacturing unit at Halol in Gujarat.
The carmaker’s launch calendar is just as aggressive, with a new car set to be unveiled every three to six months starting from September of this year.
Entering smaller cities is not just a matter of expanding the network; it’s about understanding and catering to diverse consumer preferences that exist within India’s vast market. This initiative embodies MG Motor India’s acknowledgement of the breadth of the market and their steadfast commitment to grow within it. The push towards tier III and IV cities, a sizeable investment, and an innovative lineup exemplify the company’s strategic roadmap, positioning them well for the future they envision – a future where MG becomes a household name across India’s manifold landscapes.
