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News - MGMG heading in a new directionNew three-year plan heralds end of Chinese-owned MG’s days as a price-led brand18 Nov 2024 MOVIN’ on up appears to be the new credo at MG Motor Australia as, according to a number of its executives, the SAIC-owned car-maker transitions from being price-led to a value-led brand that is pursuing both hybrid and fully electric car buyers with a tempting selection of current and forthcoming “electrified” vehicles.
As usual, there is even (strong) talk of a one-tonne ute among company execs, although how this squares with SAIC stablemate’s T60 and upcoming Terron 9 dual-cabs remains to be seen.
The thrust of the move upmarket appears to be centred on not only price but other aspects of buying an MG such as its industry leading warranty, technology and engineering improvements, customer enticements and an extensive local dealer network.
Reading between the lines, MG’s refocus likely translates into slicker, higher-priced cars which, aside from the six-figure Cyberster sportscar, is clear from MG’s last two new mainstream model launches.
Both the MG HS medium SUV and the ZS (that lobs in Hybrid+ form this week) represent a quantum leap compared to their predecessors – and also bear higher prices.
Interested parties may ask if the change will be to the detriment of sales volumes as MG has hewn a slice of the local new car pie through sharp pricing and would be well aware of marketing rule 101: Never relinquish market share (as it is hard to get back).
The upmarket shift comes after MG achieved record sales of its heavily discounted MG 4 electric small hatch in October that knocked off Tesla’s combined Model 3 and Model Y volume to become overall BEV sales leader for the month and coming within a few hundred units of Toyota’s small car market leader, the Corolla.
A circa $31,000 drive-away price in October for an MG 4 Excite 51 got close to the as-yet un-breached psychological $30K BEV barrier but one or two MG Motor Australia executives laughed off the prospect of being the first manufacturer to achieve that milestone Down Under.
Recently introduced small price hikes for the still-affordable little BEV will likely tweak competitor interest as they note what happens on sales charts over coming months.
Speaking at the recent ZS Hybrid+ launch in Sydney, MG Motor Australia CEO Peter Ciao added emphasis to changing the company’s direction saying the company has "all the tech solutions, we have the ability and we can do everything”.
“MG is based on best price and quality and backs this up with the industry’s best warranty at 10 years/250,000km, almost twice as good as some of the competition.”
“But our new focus will be on ‘best value’,” added Mr Ciao.
“MG offers the best price and now the best product,” he said when presenting the new ZS Hybrid+.
“It is the bridge for family buyers to MG with other hybrids here soon including the HS PHEV and a seven-seat SUV, both of which will be game-changers for MG.
“We consider hybrid is the future based on fuel efficiency and performance and MG provides all the solutions … PHEV, HEV, BEV and ICE.
“We currently have seven models but now we are going to the next phase following our three year plan, he stated.
In relation to a one-tonne utility, Mr Ciao said: “We would love to have the ute tomorrow but there is a process to go through and MG don’t want to take shortcuts ... But hopefully it won’t take too long to be fully tested.”
And on yet another topic, low ANCAP ratings for the MG3, “We are making changes to the MG3 at the moment prioritising safety improvements that are both structural and software based.”
Reiterating his boss’s sentiments at the ZS Hybrid+ launch function, MG Motor Australia chief commercial officer s Giles Belcher seemed to be channelling Mao Tse Tung when he said the brand was undergoing a “massive leap forward”, but it was probably in reference to new ZS Hybrid+ model and others in the pipeline next year.
“We are moving from being price-led to being value-led,” he said, adding that the company will train the dealer network to explain the “changes” to buyers.
“Once the buyer drives one (of our cars) they will see the value,” he said.
“We fully intend to maintain the current ZS sales rate (about 18,000 units YTD) despite the price rise.
“And an entry grade petrol model will be available next year – competitively priced,” Mr Belcher added.
It was an affirmation of what was reported in GoAuto last September when Mr Belcher said: “Electrification is still our vision and our future, and we will have 100 per cent electrified vehicles, but the market, the customers, currently want hybrids.
“We believe that every Australian family deserves access to a vehicle that combines style, performance, safety, all underscored by outstanding value,” he concluded.  Read more |
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