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New MG Electric Car For India Planned – Launch In Rs 10 L To 15 L Range

New MG SUV for India Rs 10 Lakh
MG One SUV – Image for reference.

With pricing in range of Rs 10-15 lakh, MG’s new electric car will take on Tata Nexon EV and Hyundai’s upcoming electric car

While SUV segment is currently the focus area for most carmakers, the next big battle will be in EV space. Estimates indicate that EV sales will witness CAGR of 53% by 2028. Sales are expected to zoom to around 1.75 lakh units per year by 2028. A significant percentage of the sales will comprise entry-level electric cars like Nexon EV.

Among the auto companies that are planning to take an early lead in this space is MG Motor. MG already offers its ZS EV in India, which is the second bestselling EV in India, after Tata Nexon EV. ZS EV is a premium electric car, available at a starting price of Rs 21 lakh. Due to its high pricing, it cannot be expected to generate high volumes.

New MG Electric Car For India

MG’s new electric car will directly rival Nexon EV. It will be available in the price range of Rs 10-15 lakh. In comparison, 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 multiple electric cars In India, one of which will be Nexon EV rival. It could be based on existing petrol-powered cars such as Venue or i10 Nios.

New MG5 Sedan
New MG5 Sedan. Image for reference.

MG Motor is encouraged by the fact that government has provided significant clarity on EV roadmap in the country. It motivates the company to aggressively target this space. MG Motor feels that it should be able to launch its new electric car in India by end of next financial year. MG’s new EV will be based on a global platform. However, it will be customized to meet Indian drive conditions, regulations and local tastes and preferences.

Focus on localization

In addition to domestic sales, MG Motor will be also targeting exports of its new EV. It will primarily cater to other emerging markets in Asia. MG Motor will be looking to utilize the government’s PLI (Production Linked Incentive) scheme, wherein cash incentives are given to manufacturers based on production.

PLI scheme was recently extended for auto sector, auto components and battery manufacturing. For its new electric car, MG will target high level of localization that covers motor, battery and other parts. MG’s new electric car could be a better match to the likes of Nexon EV. It is likely to have a comprehensive range of features. If competitively priced, it could beat Nexon EV in the numbers game.

Even the premium MG ZS EV has considerable demand in India. There are currently more than 2,000 pending orders, primarily due to global shortage of semiconductor chips. Due to this, monthly deliveries are limited to around 250-300 units. As the situation improves, MG hopes to increase supply to 500-600 units per month from February 2022 onwards.

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