New Delhi: Trends in India’s domestic automobile market are expected to remain ‘fluid’ in 2022 due to unforeseen factors, said automaker MG Motor India.
Accordingly, the carmaker cited unforeseen factors such as the Covid-19 pandemic, global semiconductor shortages, freight costs for its ‘cautious optimism’ for 2022.
In conversation with IANS, Rajeev Chaba, Chairman and Managing Director, MG Motor India said: “Currently, the domestic market is witnessing an increase in demand, but is also affected by the global semiconductor shortage.”
“The situation will remain volatile in 2022 due to unforeseen factors… We are continuously monitoring these factors and aligning our operations to capitalize on the best production.”
According to Chaba, the new normal poses unique challenges for the industry.
“The biggest challenge is maintaining business operations and ensuring the financial health of the organization and its stakeholders.”
“As the industry has displayed resilience over the past two years, we look to 2022 with ‘cautious optimism’.”
In addition, Chaba said the company has seen positive consumer sentiment due to a reduction in demand.
On a year-on-year basis, the company registered a growth of 56 per cent with retail sales of 37,723 units (January-November, 2021), up from 24,152 in the same period last year.
“However, production levels are currently affected and will remain so in the next quarter due to the global shortage of semiconductor chips.”
Still, he expressed confidence that supply will “optimize” in the coming year.
Currently, semiconductors play an important role in the production of internal combustion engines. They are an integral part of all types of sensors and controls in any vehicle.
Recently, shortages have led to extended waiting periods along with inflated prices.
“With the increase in the use of technology and the advent of ‘IoT’ and ‘5G’ in India, the demand for semiconductor chips is increasing.”
“However, we are working towards meeting our delivery commitments to customers and expect to optimize supply by the first quarter in the coming year.”
In addition, the company will focus on meeting the guidelines of the Center for Production (PLI) Plan for the auto sector by localizing the parts for your next EV.
There are plans to assemble the battery as well as other parts in India to reduce the cost.
“The car will be customized to meet Indian regulations. Also, to meet the government guidelines for production linked (PLI) scheme, we will do maximum possible localization, which will include battery assembly and other parts. ”
“With all these initiatives, we expect EVs to contribute over 20 percent of our total sales over the next two years.”
The company currently sells electric SUVs.ZS EV‘ Which is available in two variants, priced at Rs 21 lakh and Rs 24.68 lakh (ex-showroom).
The ZS EV continues to attract customers in India as we do an average of 700 bookings per month.
“The new EV, which will be a futuristic car, will be brought to the Indian market in the next financial year.”
“Based on the global platform, the new EV will be developed and expected to be priced between Rs 10 lakh to Rs 15 lakh, addressing the larger segment.”
Presently, the company provides Hector, ZS EV, and gloster in India.
Accordingly, the carmaker cited unforeseen factors such as the Covid-19 pandemic, global semiconductor shortages, freight costs for its ‘cautious optimism’ for 2022.
In conversation with IANS, Rajeev Chaba, Chairman and Managing Director, MG Motor India said: “Currently, the domestic market is witnessing an increase in demand, but is also affected by the global semiconductor shortage.”
“The situation will remain volatile in 2022 due to unforeseen factors… We are continuously monitoring these factors and aligning our operations to capitalize on the best production.”
According to Chaba, the new normal poses unique challenges for the industry.
“The biggest challenge is maintaining business operations and ensuring the financial health of the organization and its stakeholders.”
“As the industry has displayed resilience over the past two years, we look to 2022 with ‘cautious optimism’.”
In addition, Chaba said the company has seen positive consumer sentiment due to a reduction in demand.
On a year-on-year basis, the company registered a growth of 56 per cent with retail sales of 37,723 units (January-November, 2021), up from 24,152 in the same period last year.
“However, production levels are currently affected and will remain so in the next quarter due to the global shortage of semiconductor chips.”
Still, he expressed confidence that supply will “optimize” in the coming year.
Currently, semiconductors play an important role in the production of internal combustion engines. They are an integral part of all types of sensors and controls in any vehicle.
Recently, shortages have led to extended waiting periods along with inflated prices.
“With the increase in the use of technology and the advent of ‘IoT’ and ‘5G’ in India, the demand for semiconductor chips is increasing.”
“However, we are working towards meeting our delivery commitments to customers and expect to optimize supply by the first quarter in the coming year.”
In addition, the company will focus on meeting the guidelines of the Center for Production (PLI) Plan for the auto sector by localizing the parts for your next EV.
There are plans to assemble the battery as well as other parts in India to reduce the cost.
“The car will be customized to meet Indian regulations. Also, to meet the government guidelines for production linked (PLI) scheme, we will do maximum possible localization, which will include battery assembly and other parts. ”
“With all these initiatives, we expect EVs to contribute over 20 percent of our total sales over the next two years.”
The company currently sells electric SUVs.ZS EV‘ Which is available in two variants, priced at Rs 21 lakh and Rs 24.68 lakh (ex-showroom).
The ZS EV continues to attract customers in India as we do an average of 700 bookings per month.
“The new EV, which will be a futuristic car, will be brought to the Indian market in the next financial year.”
“Based on the global platform, the new EV will be developed and expected to be priced between Rs 10 lakh to Rs 15 lakh, addressing the larger segment.”
Presently, the company provides Hector, ZS EV, and gloster in India.
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