MG Motor India aims to spend roughly Rs 4,000 crore in a second production unit, for which it is in negotiations with various state governments, including Gujarat, where its first facility is located.
The business, which plans to increase the yearly production capacity of its present factory in Halol, Gujarat, to 1.25 lakh units by 2023, plans to add another 1.75 lakh units capacity from the second plant in the next two years, bringing its total capacity to 3 lakh units.
“Beyond 1.25 lakh (at Halol), we need a second plant. It can be at Halol, and we are in touch with the Gujarat government for some additional land.
Also, we have been approached by some other states. So, we have started our due diligence now about the location of the second plant. We are meeting some other states as well as the Gujarat government,” MG Motor India President and Managing Director Rajeev Chaba said.
