MG India’s statement for MCA Notice

Gurugram, October 31, 2022:

We have been sent a notice seeking clarifications primarily on why we have operational losses basis our annual report for the first year of operations 2019-2020.

MG Motor India is a law-abiding, professionally managed company that adheres to the highest standards of compliance and governance and is committed to transparency. We fully cooperate with the Govt authorities on all issues and are in process of providing the desired records and information to the Registrar of Companies within the stipulated time frame.

At the same time, we would also like to state that it is impossible for any automobile company to be profitable in the very first year of its operations. This is because of the huge Capex investment required and the long gestation period in a highly competitive market such as India where many multinationals have struggled for decades and have accumulated losses. We are a global multinational, and our books are maintained as per Indian accounting standards and audited by reputed audit firms.