MG Motors to do Rs. 2500 crore expansion of Gujarat plant

Gandhinagar: MG Motor India is likely to invest Rs 2500 crore by the end of 2022 to increase the production capacity at its Halol plant in Gujarat as it prepares to launch its midsize SUV Astor.

The company expects its sales to grow by up to 100 percent over last year despite the shortage of semiconductors. The company will do a total investment of Rs 5500 crore by the end of 2022 as it has already done an investment of Rs 3000 crore and will do another investment of Rs 2500 crore by the end of 2022.

The company is expecting to start producing 7000 units a month by quarter one next year depending on the material supplies. At present, the plant is producing 3500 to 4000 units per month due to material shortage. Though, its actual capacity is to produce 4000 to 4500 cars per month considering its workforce. The company official said that when they will add Aster to the current portfolio, they will have to increase the capacity.