MG Motor aims to boost local manufacturing & investment in India, plans IPO by 2028

MG Motor announces 5-year business plan for India

MG Motor has announced a new five-year business roadmap aimed at expanding its operations and achieving sustainable growth in India. The British car brand plans to achieve this through localization and the latest technology as well as increasing Indian shareholding over the next 2-4 years.

As part of this roadmap, MG Motor will focus on enhancing local sourcing and manufacturing across its operations by 2028. It plans to explore cell manufacturing and hydrogen fuel-cell technology through owned or third-party facilities. The auto company will also invest more than Rs. 5,000 crore and employ a total of 20,000 people—both direct and indirect—by 2028.

MG Motor plans to also establish a second manufacturing facility in Gujarat, significantly increasing the combined production output from the current 1,20,000 to 3,00,000 vehicles (including both plants' capacity). The company intends to launch 4-5 new cars, mostly electric vehicles, and achieve 65 to 75 percent of its sales from the EV portfolio by 2028.

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To support the widespread adoption of electric vehicles, MG Motor will strengthen local manufacturing of EV components and establish a battery assembly unit in Gujarat. The company also plans to explore hydrogen fuel-cell technology to reduce its carbon footprint.

The new roadmap underscores MG Motor's commitment to India's mission to become a major manufacturing hub. With this expansion, the company aims to have a meaningful impact on society by generating more employment opportunities, promoting local manufacturing, and supporting India's transition to clean energy.

"We are excited to announce our new business roadmap that will help us indigenize our operations, enhance local manufacturing and sourcing, and achieve sustainable growth," said Rajeev Chaba, president and managing director at MG Motor India.

"Our investments in advanced clean technologies, including hydrogen fuel cells and cell manufacturing, underscore our commitment to promoting clean energy and reducing our carbon footprint," he added.

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This apart, MG Motor is also reportedly planning to dilute its majority shareholding and go for an initial public offering (IPO) by 2028. As per the sources, the company is exploring various options to achieve this goal, including raising capital through private equity and selling a portion of the stake to strategic investors. The move comes as MG Motor India aims to expand its business operations in India and is looking to tap into the growing demand for electric vehicles in the country.