MG Motor India ends 2021 on a strong note despite sales slump all through the last quarter
MG Motor India has reported retail sales of 40,273 units through 2021. On the back of low base sales in 2020, MG reported 43 percent YoY growth. While the automaker’s grand entry in the country is recent, its business strategy is well thought of.
MG sells a range of UVs in India – Hector, Astor, Gloster and ZS EV. Given market projections for the country, UV sales continue to grow. Having entered the market recently, MG finds itself in a position where it can streamline any and all efforts to be a successful business entity. The approach is being perfected to the tee with timely UV launches.
As compared to 2020, growth is reported for all its cars, at 21.5 percent for Hector, 145 percent for ZS EV, and 252 percent for Gloster. 2021 started off on a positive run for MG, and this continued until Q3 2021. However, Q4 sales has been an altogether different story.
MG Car Sales Dec 2021
In Q1 2021, the manufacturer sold 13,459 cars as compared to just over 6k units for the same 3 months the previous year. In Q2 2021, sales were reported at 7,607 units at almost 5k units over the comparable quarter. In Q3 2021, the company reported sales at 11,366 units at almost 4k units over the previous year.
However, Q4 2021 sales fell to just below 8k units from about 12k units at 4k units volume loss. Sales in December 2021 fell to just under 2.5k units from 4k units YoY. H1 sales was reported at 21,066 unist, and H2 at 19,207 units.
That said, MG has closed 2021 with a significant backlog. Going into 2022, the automaker is channelising all efforts to meet growing demand, alongside strengthening its network of stakeholders in India.
Despite the slump in Q4 2021, MG powers through the year gone by having reported sales growth for all of its car lines. Its most recent launch, MG Astor’s success was profound in realtime with the company very quickly realising its target sales of 5k units in 2021.
Global semiconductor shortage
Rajeev Chaba, President and Managing Director, MG Motor India, said, “The year 2021 was a challenging year for the entire auto industry. We foresee the situation will remain fluidic due to unpredictable factors – Omicron threat, global semiconductor shortage and inflation risk due to increase in material cost.
However, resilient demand trends give us a reason to assume cautious optimism. The uncertainty may continue for the first 6 months of 2022 and will persist in some form throughout the year. MG Motor will constantly be monitoring these factors and aligning its operations to meet the demand.”
MG Motor’s Halol manufacturing plant has an annual production capacity of 80,000 vehicles. Retail sales through 2021 are reported at just over 40k units, up from 28,162 units in 2020 at volume gain of 12,111 units.