MG Motor is expected to outperform the Indian market this year and double sales in 2022 with its all-new mid-size SUV MG Astor. Last month, the SAIC-owned company had introduced the concept of Car as a Platform (CAAP). But it is concerned about the ongoing global shortage of semiconductors.
Rajeev Chaba, president of MG Motor India, told ET that the company doesn’t have clarity on the availability of parts with chips. “We are facing problems in every car line. Once supplies stabilize, we are confident we should be able to double overall volumes to 7,000-8,000 units every month.” Chaba said MG Motor is operating at 60-70% of potential capacity currently due to the shortage of semiconductors. “While the supply of the chips is expected to improve in the first quarter of 2022, it may take up to a year for the situation to completely normalize,” he revealed.
However, MG Motor will go ahead with its plans to scale up investments to expand capacity at its manufacturing facility at Halol in Gujarat to attain sales of 80,000-100,000 units in 2022. The carmaker is working at achieving 50,000 units sales this year.
Chaba highlighted that the current supply environment is challenging, but demand was building up with the approach of the festive season and the company was seeing strong traction for its products.
MG Motor has its hopes set on its latest SUV, Astor which features personal artificial intelligence (AI) assistant and Autonomous Level 2 technology. The company claims Astor is the first car to get a personal AI assistant in the company’s global portfolio. The personal AI assistant depicts human-like emotions and voices, and can give detailed information on every topic through Wikipedia. Moreover, it will engage with people in the car and is powered by i-Smart Hub.
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The new SUV will take on the likes of Hyundai Creta, Kia Seltos, Skoda Kushaq and VW Taigun this festive season.
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