MUMBAI: MG Motor India will launch four passenger vehicles, including sport utility vehicle Hector within the next 18 months.
“We have finalized four products for India. All of them are planned for the next 18 months, starting from the Hector SUV," Rajeev Chaba, president and managing director of MG Motor India, said in an interview after unveiling the Hector model in Mumbai on Wednesday. The remaining models will include an electric car, which is slated for launch by the end of this year, and one in the affordable segment, which will be positioned as the volume garner for the company. “Some of these (models) will further consolidate the MG brand in India and one product will be aimed to get volumes," said Chaba.
This will ensure appropriate utilization of the production capacity of 80,000 units per year at its manufacturing plant in Halol, Gujarat, he added.
The top management at MG Motor India is working on a 10-year strategy over three phases. In the first 2-3 years, it will work on establishing the brand, setting up a plant and dealership network, besides finalising processes and new product launches. Chaba said phase 2 will be about expanding the production capacity and reach, besides introducing new offerings. “Probably, we will see more affordable cars in phase 2 that will garner volumes for us. Phase 3 in our 10 year strategic plan will largely involve pan-India expansion with volumes and profits. Product portfolio wise, we are implementing a top-down approach."
The Hector SUV, which will start selling from June, will take on Tata Harrier, Jeep Compass and Mahindra XUV500.
According to Chaba, the company wanted to enter India with a midsize SUV because the volumes are neither very high nor very low. “This segment gives us adequate space to prioritise customer experience in a much better way."
The company is also looking to have a lower break even point. “We are not going to lose money on the car, which means its contribution margin will be positive from the start. But if we are to consider all other costs, including marketing, operations and others, we hope to start generating profits from the fifth year, on the overall basis," said Chaba. MG Hector is targeting the 25-45 age group.
“They will be the successful young professionals and business entrepreneurs," he added. MG Motor is starting its retail and after sales operations from June with 120 touch points, including 70 showrooms and 50 workshops. Between June and September, it plans to add another 130 touch points.