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MG Motor India has stated that the production and supply logistics of the Hector SUV could face a disruption in the month of February, due to the coronavirus outbreak in China. The company stated that the supply of parts from its European, Chinese and Asian vendors will face disruption. MG also stated that the company currently doesn't have enough inventory to handle the disruption.
MG Motor India stated:
"We expect significant disruption in the supply chain from European and Chinese/Asian suppliers and our sales may get impacted in February due to the Coronavirus, as our inventory levels have been minimum because of the bookings backlog. We are working towards ensuring that the impact on the end-consumer and our operations is minimized."
The MG Hector, the brand's first product in the Indian market was launched in mid-2019 and since then has received an overwhelming response. The Hector already demands a long waiting period in the Indian market. Now, the disruption in the supply chain will have a direct impact on the production and sales of the SUV, which could potentially also increase waiting periods for customers.
The coronavirus whose epicentre is at Wuhan, China has been declared as a public health emergency by the World Health Organisation (WHO). Currently, 18 countries across the world have reported having confirmed cases.
MG Motor India will also be participating at the upcoming Auto Expo 2020; unveiling their new ‘Gloster' SUV. The new MG Gloster SUV, based on the Maxus D90 will be offered as either a six or seven-seater SUV, rivalling the likes of the Toyota Fortuner and Ford Endeavour once launched in the Indian market.
The MG Gloster is likely to be the third product from the brand, after the Hector and ZS EV SUV offerings. The company's second product, the all-electric ZS SUV was launched in India recently at a starting price of Rs 20.88 lakh, ex-showroom (India).
Thoughts On The MG Hector Production Disruption Due To The Coronavirus Outbreak
MG Motor India could face a tough month in terms of sales in February 2020. The company is working hard at reducing the impact of the disruption in production on their customers. The MG plant which increased production capacity in November has been working at full speed to reduce pending orders for the Hector.