“Let’s put it in perspective: 10,000 square meters is double the storage that today’s competitors have twice the market share that we So for every percentage point we have of market share in sales, we have double the square meters of what other brands have”, asserts García.
Most of the spare parts come from China, while a small portion correspond to local suppliers, mainly accessories, oils and tires.
Currently, the complex has 2,200 pieces a day that are distributed among its 74 distributors around the country. Similarly, it has 4.5 months of inventory in those parts that generate 80% of sales, in addition to 1.5 months of inventory that is in constant rotation.
The brand, owned by the Chinese company Saic, sold 8,138 vehicles between January and February of this year, according to data from the National Institute of Statistics and Geography. With this, it was placed as the eighth best-selling brand in the country, accumulating a 4.1% market share, a figure that it intends to increase to 5.5% by the end of this year.
García points out that although a large part of the parts are requested from those with the greatest demand, because they are of intensive use, the supply model also obeys planning in accordance with the accident rate.
“A study is carried out with the insurers to see how the claims will be in the future, according to the sales plans, and based on this we make a 12-month plan. In this way we make sure that the spare parts warehouse has the necessary inventory to supply the market”, he adds.
García recalls that during the covid-19 pandemic, with the increase in sea freight prices and the halts in productive activities in China as part of its “zero covid” policies, brought with it a complicated outlook for spare parts. The foregoing led to the fact that during that time, the company will invest close to 13.5 million pesos in air freight, a logistics modality that is not very common in the automotive sector.
On average, MG Motor receives 25 maritime containers and between 10 and 15 air shipments, the latter being those that correspond to those of “greatest urgency.” However, of the total number of imported parts, around 5% or less corresponds to air transportation and 95% to sea transportation.