MG (Morris Garages) India is confident of making a splash in the Indian auto market this June when it rolls out the Hector, despite poor market conditions.

With auto sales dropping since July 2018, experts are not forecasting a revival soon. Sales might pick up late in the second quarter for festive buying.

From the fourth quarter of this financial year, effects of the Bharat Stage (BS) -VI transition will be felt as original equipment manufacturers clear up BS-IV inventories.

“With 2020 being a transformative year for the automotive industry, we are at the cusp of a changeover. Besides BS-VI, a host of other regulatory norms will come to bear. Customers will postpone their purchases till the regulations kick in fully and they can assess their decisions after that,” said an industry insider.

What makes MG India confident of sales picking up is the low penetration of cars in India. “The key factor here is the low penetration of cars. There are 18 cars per 1,000 people. There is enough headroom to grow,” Gaurav Gupta, chief commercial officer of MG India, said during the unveiling of their debut vehicle, the MG Hector, in Mumbai last week.

“We are serious about the Indian auto market and just a few months of depressed sales will not deter us. We have already committed to making an investment of Rs 5,000 crore of which Rs 2,500 crore have already been invested in the first phase,” said Gupta.

However, MG India is treading cautiously while adding dealerships. “We are appointing one dealer in each city. Other than Delhi and Mumbai, all other cities will have a single MG dealership,” said the COO.