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MG Motor India is exploring export opportunities in the UK and South Africa besides drawing up plans to tap right-hand-drive countries in the global automotive market as it prepares for the long term to enhance overseas shipments from India, according to a top company official.
The company, which has started exporting to Nepal, plans to make India as an export hub for the neighbouring markets.
"Though at present, there is a shortage of chips... we need to prepare ourselves for the long term. We wanted to expand our base and make India as export hub for neighbouring markets," MG Motor India President and Managing Director Rajeev Chaba told PTI.
The company has already started with the Nepal and dispatched the first batch of MG Hector. It will continue with the Hector SUV right now and then add the newly launched mid-sized SUV MG Astor and ZS EV next year, he added.
"So, Nepal is the first country but we are actively exploring other countries in the region, namely, Sri Lanka, Bangladesh and Bhutan. Also, we have got inquiries from the UK because the UK is right-hand market. So, we are also exploring the opportunity of exporting and MG Hector to the UK," Chaba said.
On South Africa, another right-hand-drive market, he said MG operations still have to start in the country as it has been delayed because of COVID-19.
"It's not ruled out...Once MG operation starts in South Africa that also will be a potential market," he said adding that the right-hand-drive countries in the global automotive market "could be potential export markets for the company's MG Hector SUV".
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Explaining the rationale behind the company starting exports despite having order backlog in the domestic market due to semiconductor shortage, he said, "This export is for the long term and and we are seeding the markets right now, to start with a lower volumes, but when the situation improves that say, in a year from now, this will give us a good diversification of our sales footprint."
He further said it takes time to develop the brand and develop the market network.
Exports, he said, will help the company in the long term from a point of having more dollar revenues and "this will help us get more volumes as well as spread our base for sales footprint".
On the semiconductor shortage, he said, "It is actually a short term issue the constraints of chips, which may last for six to nine months.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
