“The idea is not to reduce prices but rather to pack features and offer vehicles at price points which will enhance the value proposition of our customers,” Rajeev Chaba, CEO emeritus of MG Motor India, told ET at the Bharat Mobility Show on Friday.
He said the company has carried out extensive customer clinics over the last six months to understand what kinds of trims and options can be withdrawn for its various models and to find the sweet spot in its pricing strategy.
With these changes in place and a new product intervention, MG Motor expects volumes to grow by 25-30% in 2024, Chaba said. “We rationalised prices of entry SUV Astor two weeks back and since then our bookings have increased by 50%,” he said.
MG Motor India sold about 60,000 vehicles in the local market last year, with its electric vehicles Comet and ZS EV accounting for nearly a quarter of that.
Chaba expects the company to outpace the overall domestic car market where the growth rate is likely to taper off on a high base even as customer demand remains healthy. “While the industry is expected to grow by less than 5% this year, we expect to grow faster,” he said.MG Motor India has increased efficiencies at its manufacturing facility in Halol, Gujarat and aims to produce 80,000-90,000 vehicles this calendar year.Its ramp-up drive comes at a time when its owner, China’s SAIC Motor and Sajjan Jindal-promoted JSW Group are in advanced stages of forming a joint venture to run MG Motor’s operations in the country. The two companies signed a strategic JV deal in November whereby JSW will hold a 35% stake in the Indian operations.
This deal will bring more capital to the maker of Hector and Astor SUVs to expand operations in the local market. And JSW Group will get a foothold in the fast-evolving electric vehicle segment in India.
The development comes amid increased scrutiny by the Indian government on investments made by Chinese companies amid heightening geopolitical tensions. MG Motor, too, has been facing delays in approvals for investments from China.
MG Motor, formerly Morris Garage, is a British marque brand owned by SAIC. The company had a good start in India with the launch of Hector in 2019.
MG Motor India – which currently has five vehicles in its portfolio – had said at the start of FY24 that it is targeting doubling its product portfolio by 2028. The company plans to launch 4-5 new cars, mostly EV models, and achieve 65-75% of its sales from the EV portfolio by 2028.
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