MG Motor India to revamp dealership network ahead of deal with JSW Group

MG Motor India has assured its dealers regarding the continuity of its operations.

MG Motor India is planning a revamp of its dealership network ahead of its deal with JSW Group with an aim to optimise its network by identifying and addressing underperforming dealerships and expanding to newer locations, a newspaper report has said. The reorganisation will likely align with MG Motor India's growth strategy, ensuring a strong and effective dealership network to support its business objectives.

MG Motor India, known for models such as Hector, ZS EV, and Comet, is proactively gearing up for an expansion in production capabilities and the introduction of new models and variants, the Economic Times reported on October 10. This readiness and forward planning align with the imminent finalisation of the deal between MG Motor India, a wholly-owned subsidiary of the Shanghai-based SAIC Motor, and JSW Group, signalling the company's commitment to further growth and innovation within the Indian automotive sector.

Moneycontrol could not verify the report independently.

This website last week reported that a formal announcement regarding the partnership between MG Motor India and a private entity led by Sajjan Jindal is expected to be made by Diwali.

Also Read: MG Motor India exploring options for a second plant in country

The $23-billion industrial conglomerate led by Jindal has shown deep interest in advancing the localisation of electric vehicles (EVs) in India, and is actively planning to roll out EVs via its collaboration with MG Motor India by January 2024. More significantly, this initiative aligns with the larger trend of promoting local manufacturing and adoption of EVs in India.

MG Motor India has assured its dealers regarding the continuity of its operations and brand MG brand in India after the deal with JSW Group. Plus, the company outlined plans to launch new models and variants, as well as expand its overall production capacity, the financial daily reported.

Also Read: Sajjan Jindal, SAIC finalise terms of agreement to buy stake in MG Motor India

Management view

The publication quoted a spokesperson for MG Motor India as saying that the company is placing significant emphasis on customer-centric operations and is focused on various avenues of growth and expansion within India, with network development being a crucial aspect of its growth strategy.

Also Read: JSW-MG Motor deal likely by Diwali, may acquire 35% stake to launch EV in January

Also, the automaker is strengthening its presence across the country by increasing touchpoints, aiming to go from the existing 330 touchpoints in 158 cities to 400 in 270 cities by December 2023.

The process of identifying dealers as part of the network rejig is likely to be completed within a week to 10 days.