With easing curbs of COVID-19, sales recovery comes in sight: MG Motors

According to a top company official, with various states bringing an end to restrictions on business activities due to improvement in the COVID-19 situation, MG Motor India expects sales to recover gradually over the next few months. A growth of around 20 per cent in the 2021 calendar year as compared with the last year is expected in the industry by the automaker which sells models like Hector and Gloster in the domestic market.

Despite supply chain challenges and an increase in input costs, the company expects the growth to be much greater than that of the industries. According to Rajeev Chaba, MG Motor India President and MD told in the Press Trust of India in an interaction that they were expecting the sales growth of around 30 to 40 per cent this year, taking them closer to the figures in 2018 but nobody had anticipated the second wave at this time.

As compared with 15,930 units in 2019, in 2020 the automaker had sold around 28,162 units. The industry would continue to face supply chain Challenges this year despite markets opening up as cautioned by Chaba.

As compared to the availability of workforce at plants amid the coronavirus pandemic, rise in raw material cost, increase in shipping costs along with shortage of semiconductors were a much bigger issue for the industry, he said.

One shift operations have been commenced by the company at its Halol-based manufacturing plant and are looking forward to making complete use of the facility in terms of capacity and profitability, Chaba added. According to him, a maximum of one lakh units per annum can be rolled out by the plant purchased from General Motors.

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