With a price tag of Rs 10-15 lakhs, MG’s new electric car will rival the Tata Nexon EV and Hyundai’s upcoming electric car
While the SUV segment is currently the focus area for most car makers, the next big battle will be in the EV space. Estimates suggest that EV sales will witness a CAGR of 53% by 2028. Sales are expected to grow to around 1.75 lakh units per annum by 2028. A significant percentage of sales will be comprised of entry-level electric cars like the Nexon EV.
MG Motor is also one of the auto companies planning to take an early lead in this space. MG is already offering its ZS EV in India, which is the second best selling EV in India after the Tata Nexon EV. The ZS EV is a premium electric car with a starting price of Rs 21 lakh. Due to its high price, it cannot be expected to generate high volumes.
New MG Electric Car for India
MG’s new electric car will directly compete with the Nexon EV. It will be available in the price range of Rs 10-15 lakhs. In comparison, the Nexon EV is available in the range of Rs 14.24 lakh to Rs 16.85 lakh.
There could be more rivals for MG, as other carmakers like Hyundai are also planning to launch entry-level electric cars in India. Hyundai is planning several electric cars in India, one of which will rival the Nexon EV. It could be based on existing petrol-powered cars like the Venue or the i10 Nios.
MG Motor is buoyed by the fact that the government has provided significant clarity on the EV roadmap in the country. This prompts the company to aggressively target this space. MG Motor feels that it should be able to launch its new electric car in India by the end of next financial year. MG’s new EV will be based on the global platform. However, it will be customized to meet the Indian drive conditions, regulations and local tastes and preferences.
focus on localization
Apart from domestic sales, MG Motor will also target exports of its new EV. It will primarily cater to other emerging markets in Asia. MG Motor is looking to use the government’s PLI (Production Linked Incentive) scheme, which provides cash incentives to manufacturers based on production.
The PLI scheme was recently extended to the auto sector, auto components and battery manufacturing. For its new electric car, MG will target a high level of localization that covers the motor, battery and other parts. MG’s new electric car could be a better match to the likes of the Nexon EV. It is likely to have a wide array of features. At a competitive price, it can beat the Nexon EV in the numbers game.
Even the premium MG ZS EV is in great demand in India. There are currently over 2,000 pending orders, mainly due to a global shortage of semiconductor chips. Due to this, the monthly delivery is limited to around 250-300 units. As the situation improves, MG expects to increase the supply to 500-600 units per month from February 2022.