Sales have recovered with the easing of the COVID curbs across the country
The sales are expected to increase gradually by MG Motor over the next few months with various states removing limitations on business activities due to the improved conditions in the Covid situation. The automaking company that sells models like Gloster and Hector in the domestic marketplace of India expects the industry to post a growth of about 20% in the year 2021.
Despite there being the existence of supply chain challenges and an increase in input cost, the company expects the growth to be significant.
MG Motor India President and MD Rajeev Chaba PTI in an interaction said “As an industry, we were expecting 30-40 per cent sales growth this year taking us closer to 2018 numbers. But nobody had anticipated the second wave at that time. Now with what has happened, it would not be possible to get 30-40 per cent growth. There would be growth over last year but now we expect it to be around 20 per cent.”
He observed that the scenario is getting better in terms of sales, and production of Cars. Chaba later in the interaction said: “Hopefully, the worst of the second wave is behind us. June is already turning out to be better as compared with May and July is expected to be better than June, so numbers have started to go up. In May we touched the bottom as an industry and the numbers would start going up now.”
In the year 2020, the automaker sold a total of 28,162 units, as compared with 15,930 units sold in 2019. The company is still expected to face supply chain challenges as per Chaba. Chaba also informed that around 80% of the employees of his company have been vaccinated and the others would be by the end of this month.
At last, Chaba added that “I will not rule out another price hike this year.” The company would continue to focus on technology and innovations as per Chaba’s statements.