MG Motor India anticipates disruption in supply chain

MG Motor India’s production may get affected in February due to China’s Coronavirus outbreak disruption in supply chain.

The Chinese-owned company has pending orders for around 16,000 units of the MG Hector SUV and 2,409 units of the MG ZS EV, launched earlier in January but has yet to hit roads. Apart from components, batteries for the ZS EV are sourced from parent SAIC’s coowned facility near Shanghai.

Rajeev Chaba, President, MG Motor India said that the company is suspecting significant disruption in supply chain from European and Chinese/Asian supply chains in February. The production and sales might get hit in February as the company’s inventory level is at minimum because of bookings.

Tata Motors, whose British luxury vehicle unit Jaguar Land Rover has manufacturing operations in China, said it was waiting for more information on the outbreak. “It’s a developing situation at this point in time. People are in the midst of the Chinese New Year break. Some states have also extended the Chinese New Year break till February 8. We are awaiting more information,” group chief financial officer PB Balaji said during the automaker’s results conference.