MG Motor India Set to Launch Third Electric Car Model This Festive Season

Highlights:

• MG Motor India to introduce its third electric car model during the festive season.
• Strategic move to strengthen position in the growing electric vehicle market.
• Joint venture between China’s SAIC Motor and JSW Group to oversee MG Motor’s operations in India.
• Emphasis on expanding electric vehicle offerings amid increasing competition.
• Industry projections indicate significant growth potential for electric vehicles in India.

MG Motor India is gearing up to launch its third electric car model during the festive season to strengthen its position in the burgeoning electric vehicle market against both established players and new entrants. This forthcoming launch marks a significant milestone for the automaker, which is jointly owned by China’s SAIC Motor and the JSW Group, led by Sajjan Jindal, as they finalize plans for a joint venture to oversee MG Motor’s operations in India.

Rajeev Chaba, chairman emeritus of MG Motor India, emphasized the company’s commitment to expanding its presence in India, particularly in the electric vehicle segment. He revealed plans to introduce at least one new electric vehicle this year, underscoring the strategic importance of electric mobility in the Indian automotive landscape.

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The move comes amid a flurry of activity in the electric vehicle space, with numerous automakers, including Maruti Suzuki, Hyundai, and Tata Motors, gearing up to launch around a dozen new electric car models in the coming financial year. The surge in electric vehicle adoption is evident, with approximately 82,000 electric cars sold in the local market in CY2023. Despite comprising only 2% of all passenger vehicles sold in India currently, electric vehicles are expected to capture a significantly larger market share, estimated at 15-20% by 2030.

Chaba noted that the industry is poised for a major inflection point once electric car penetration reaches 7-8%, driving accelerated adoption of eco-friendly transportation solutions. MG Motor India is already making strides in this direction, with electric vehicles accounting for 25% of its sales volume. The company aims to further increase this share in the future.

In terms of sales performance, MG Motor India is optimistic about achieving robust growth this calendar year, projecting a 25-30% increase in sales. Despite the broader automotive industry’s growth rate expected to hover around 5%, MG Motor India anticipates outpacing this trend, buoyed by sustained customer demand and strategic product offerings.

Efforts to bolster manufacturing capabilities are also underway, with MG Motor India targeting production volumes of 80,000-90,000 vehicles in 2024. This ramp-up in production coincides with the strategic joint venture agreement signed between SAIC Motor and the JSW Group, wherein JSW will acquire a 35% stake in MG Motor India’s operations. This infusion of capital will fuel the company’s expansion efforts while providing JSW Group with a foothold in India’s rapidly evolving electric vehicle market.

Founded as Morris Garages, MG Motor is a British marque brand now owned by SAIC. Since its entry into the Indian market with the Hector SUV in 2019, MG Motor India has steadily expanded its portfolio and market presence. Looking ahead, the company aims to double its product portfolio by 2028, with a strong emphasis on electric vehicles. By targeting 65-75% of sales from electric vehicles by 2028, MG Motor India is poised to play a leading role in shaping the future of mobility in India.