According to a top corporate executive, MG Motor India anticipates sales to gradually rebound over the next several months, with many states lifting limitations on commercial operations owing to an improvement in the COVID situation.
The manufacturer, which offers models such as the Hector and Gloster in the home market, anticipates a 20% increase in the industry in the 2021 calendar year compared to the previous year. Despite supply chain problems and rising input costs, the firm intends to outperform the sector in terms of growth.
“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 a growth over last year but now we expect it to be around 20 per cent,” MG Motor India President and MD Rajeev Chaba stated to the PTI.
In 2020, the carmaker sold 28,162 units, up from 15,930 units in 2019.
Chaba, on the other hand, warned that, despite the opening of markets, the sector will continue to confront supply chain problems this year. He highlighted that the availability of personnel at facilities in the midst of the coronavirus pandemic was a considerably larger concern for the business than the scarcity of semiconductors, increases in transportation prices, and increases in raw material costs.
Chaba stated that the firm has already vaccinated 80% of its workers and that the other 20% would be immunised by the end of this month.
When asked how the firm is dealing with the constant rise in raw material costs, particularly those of steel goods, he stated that nearly every participant in the sector has already raised prices twice this year, which was formerly a once-a-year occurrence.
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