The new MG electric MPV is expected to be launched within a year, potentially by the end of 2024, and no later than March 2025, if everything proceeds as planned.
Following a fresh investment from the JSW Group, MG Motor, a British brand owned by SAIC, is gearing up to enhance its electric vehicle offerings in India and compete with Tata Motors by focusing on mass-market products. According to sources, MG Motor plans to introduce two new electric vehicles based on the E260 EV platform, which will include a five-door SUV and a compact MPV, both expected to be priced below Rs 15 lakh. While the ZS EV had a decent start, the Comet EV has seen limited acceptance in niche segments. With these new models, MG aims to make a significant impact in the market by challenging the leading brands.
The upcoming MG electric MPV, set to launch within a year, is anticipated to be available before the end of 2024 or by March 2025 at the latest. This MPV will be based on the Wuling Cloud EV, which is currently sold in Indonesia. It measures approximately 4.3 meters in length and has a 2,700mm wheelbase, slightly shorter than the Maruti Ertiga and slightly longer than the Renault Triber. This three-row EV will target both family buyers and the fleet segment, benefiting from the Government of India’s FAME scheme.
The fleet market, currently underexplored, accounts for only 10-15% of the approximately 81,000 units per annum market. MG’s new MPV and SUV aim to fill gaps in its portfolio and expand its customer base in the around Rs 15 lakh segment, which is becoming increasingly popular among upgraders. The new SUV, expected to launch within three to six months of the MPV, will be a rugged five-door vehicle similar to the Maruti Jimny and based on the Baojun Yep Plus SUV.
MG Motor currently holds about a 1% market share in the competitive Indian market, with five models in its portfolio and monthly sales of around 5,000 units, of which EVs make up 10-20%. The company expects EVs to account for nearly 50% of its total sales in the coming years and plans to locally assemble batteries at its Halol factory. MG is also considering acquiring additional land near Vadodara to double its capacity to over 3 lakh units per annum.
Rajeev Chaba, CEO Emeritus of MG Motor India, outlined the company’s long-term plan for India with its 2.0 and 3.0 strategies in May 2023. The 2.0 plan involves expanding capacity from 70,000 units per annum to 1.2 lakh units, while the 3.0 plan aims to further increase capacity to three lakh units. In November 2023, SAIC and JSW entered a strategic joint venture. The partnership aims to enhance local sourcing, improve charging infrastructure, expand production capacity, and introduce a wider range of green mobility vehicles. Under the agreement, JSW will hold a 35% stake in the Indian JV operations, with SAIC continuing to support the venture with advanced technology and products. Further details on MG Motor’s future plans are expected to be revealed soon.
The recent announcement by Maruti Suzuki about launching its electric vehicles (EVs), coupled with the government’s new EV policy, could indeed be a significant development in the Indian automotive market. The new EV policy is likely to offer incentives and support to both manufacturers and consumers, which could help reduce the cost of electric vehicles and make them more affordable. This move is expected to accelerate the adoption of EVs in India, contributing to the country’s efforts towards sustainable transportation and reducing carbon emissions.
For companies like Maruti Suzuki, this could be an opportunity to expand their product lineup and tap into the growing demand for eco-friendly vehicles. It will be interesting to see how other OEMs respond to these developments and what innovations and pricing strategies they will adopt to compete in the evolving EV market.
