Monday 19 March 2018

We believe in slow but sure growth in India: MG Motor India's Rajeev Chaba

Rajeev Chaba, president and managing director at MG Motor India

MG Motor, owned by China’s biggest carmaker SAIC, is investing Rs 20 billion in the Gujarat plant it acquired from General Motors. The company is getting ready to launch its first product in the summer of 2019 and may take the total investment to Rs 50 billion to double capacity to 200,000 vehicles. Rajeev Chaba, president and managing director at MG Motor India, tells Ajay Modi despite the challenges in India the company may surprise everyone. Edited excerpts:

What are the challenges in making the GM plant ready? The plant is old. We are renovating most of its facilities. We had to remove the body shop and lay it again. The same with general assembly area. Around 90 per cent of the plant is being revamped with a fair degree of automation. Only some of the equipment are fit for use. We also need to invest in a new press shop and a vendor park.

Since you will operate from an old GM plant, will you have some baggage of GM’s legacy? I doubt consumers take it that way. GM is a good partner to SAIC in China. But this venture is 100 per cent under SAIC. We do not have any input from the GM. I believe the consumers will look at what offer and assurance we have for them. It has to be a compelling proposition.

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