JSW MG Motor Leads India as First OEM with 40 percent Sales from EVs
JSW MG Motor India has bolstered its automotive presence by becoming the first OEM in India to achieve 40% of its sales from its EV portfolio. MG Motor has successfully repositioned its EV sales through various business strategies, resulting in a 50% increase within six months, according to Satinder Singh Bajwa, Chief Business Officer at Morris Garages India.
Currently, MG has diversified portfolio including Hector, Gloster, ZS EV, and Comet as one of the most popular EV names. MG that used to sell around 400 Comet half a year back has now sold around 900 Comet last month, due to its repositioning strategy i.e customization for its customers. Making it the first OEM in India to power its 40% sales through electric cars, “ our EV volume contributed almost 40% of our total monthly volume in June and a month before it was 35%”, added CBO.
The company has recently repositioned its two variants, the ZS EV (priced at INR 18.98 Lakh) and the Comet (priced at INR 7.45 Lakh), to boost its EV growth in India. This repositioning comes in response to declining sales during the first half of FY24. In January, MG sold 2,922 units, marking a 7.2% year-over-year decline. February and March saw positive sales for MG, but at the beginning of the financial year in April, the company experienced a 10% year-over-year sales drop. May recorded slightly positive sales, but the decline continued in June with a 9% negative growth.
Talking about the need to re-strategise the techniques for MG, Bajwa said, “I think it is very important that the product (ZS EV) has got a very strong acceptance. That's the strength of that product. Customers who are using ZS EV, they're very happy with the product. When you buy an EV, your anxiety is largely about the range. ZS EV, I think largely the product is delivering to the expectation of the customers".
To boost its EV portfolio, MG Motor is planning to launch new products in the coming years as reported by ETAuto earlier. The first new product launch is expected to be in the Q3 of FY25. “Following that, we are lining up that we should have a new product every five to six months and we will be present in the segments”, said Bajwa. However, the company, which predominantly features SUVs in its portfolio, might enter the sedan and hatchback segments when the timing is deemed 'appropriate' for the company, stated Bajwa while discussing the company's potential expansion into different segments.
MG is emphasising on its fundamentals in India through vehicle selling and it is parallel focusing on building consumer confidence. “We are not in a hurry right now because we have to only focus on building volumes. I think we are first trying to put the fundamentals in place, and then bring the right products to the Indian market and then look at scaling it up gradually”, added Bajwa. The company currently has 400 touch points (including sales, service, secondary outlets, and others) and aims to increase this number to 600 by the end of the year, with a target of achieving an additional 20% of sales from non-urban areas.
