In order to challenge domestic auto giant Tata Motors’ supremacy in the green mobility sector, MG Motor India plans to introduce a cheap electric vehicle priced less Rs 15 lakh in the local market the next fiscal year.
According to Rajeev Chaba, President and Managing Director of MG Motor India, ET, the business will obtain the product’s batteries locally to keep costs low. The business anticipates that once this car enters the mass market, EV sales might account for up to 25% of total sales in 2019.
“For India, if we want to democratize technology, we will need low-cost solutions. We will launch our second electric vehicle in the second quarter (April-June 2023). We expect to get good volumes,” Chaba said.
According to Rajeev Chaba, President and Managing Director of MG Motor India, ET, the business will obtain the product’s batteries locally to keep costs low. The business anticipates that once this car enters the mass market, EV sales might account for up to 25% of total sales in 2019.
With a market share of more than 80% in the local EV market, Tata Motors now offers three models: Tiago, Tigor, and Nexon. Prices range from Rs. 8.49 lakh to Rs. 17.50 lakh for these (ex-showroom). The business expects to sell close to 50,000 electric vehicles by the end of the current fiscal year. In total, Tata Motors intends to introduce 10 EVs over the following five years.
According to Chaba, MG Motor India is aiming to develop an ecosystem for electric cars in order to hasten the transition to clean mobility.
Under the MG Developer Program (MGDP), the business is working with tech start-ups to create novel battery chemistry and charging solutions for the local market that can eventually be reproduced in MG Motor’s UK division and in other emerging countries around the world.
180 startups have already been selected and mentored by MG and its consortium partners to investigate and develop applications in connected automotive technology, futuristic technologies, and CaaP. These startups include Koinearth, Electreefi, Voxomos, Redbot Technologies, and Mihup (Car-as-a-Platform).
Overall, according to Chaba, there is still a strong demand for electric vehicles. MG Motor India is working to increase ZS EV manufacturing from the current 300–350 units per month to 500 units per month. By January 2023, production of the SUV Hector is expected to expand from the current 2,000 units per month to 4,000 units. The business expects to sell 55,000–56,00 units at year’s end and hopes to double volumes in the following year.
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