MG Motor India targets 20% sales from EVs by 2024

MG Motor India is betting big on electric vehicles (EVs). The carmaker, which introduced its first EV – the MG ZS EV – in the country in January 2020, is all set to come up with its second all-electric product in FY2023.

Claimed to be a futuristic offering built on a global platform, the next electric model from the SAIC-owned carmaker is likely to be positioned as a mass-market product in the Rs 10-15 lakh price bracket.

The ZS EV, available in two variants priced at Rs 21 lakh and Rs 24.68 lakh (ex-showroom), was one among the three mainstream EVs to have seen an early introduction into the nascent EV passenger vehicle market, which has shown some signs of evolution during the past two years. The Hyundai Kona EV and Tata Nexon EV, the market leader, continue to be the two other EV options below Rs 30 lakh for Indian customers.

MG Motor India has sold a cumulative 3,838 units of the ZS EV over 22 months since launch in February 2020. The company says it is currently struggling to meet the surge of demand for the all-electric crossover which is averaging 700 bookings every month. The ZS EV, which is equipped with a 44.5kWh li-ion battery pack, has a claimed range of 419km on a single charge.

“The ZS EV’s success in the market marks the beginning of a truly collaborative ecosystem-building approach to EVs in India,” says Rajeev Chaba, president and managing director, MG Motor India.

The ecosystem that Chaba is talking about includes a diversified network of EV chargers, with an aim to offer MG’s customers in India a holistic answer to range anxiety that comes bundled with an EV still.

“We have led a five-way charging ecosystem, including a free-of-cost AC wall-box charger at residences / offices, portable in-car charging cable, DC superfast charging stations at MG dealerships, 24x7 charge-on-the-go facilities in five Indian cities, and charging stations in satellite cities and tourist hubs,” he details.

Doubling EV sales
The company’s efforts to comfort its customers from range anxiety and allowing them the freedom to take their ZS EVs anywhere across the country, are the building blocks to its next move.

“In our endeavour to broaden access to wider segments and encouraged by the government’s clarity on its EV roadmap, we will bring to the country the second EV. The car will be based on a global platform, but customised to meet Indian regulations,” announces Chaba.

“We will also undertake maximum possible localisation, including assembly of battery and other components, to meet the government’s guidelines for the PLI scheme. With all these initiatives in place, we expect EVs to contribute over 20% of our overall sales in the next two years,” he adds.

With an overall sales tally of 37,723 units coming up in the January-November 2021 period across six models, the company has registered smart year-on-year uptick of 56 percent, compared to 24,152 units retailed in the same timeframe in 2020. At 2,696 units, 70 percent of the ZS EV’s sales have come over the first 11 months of 2021, with the all-electric crossover already contributing to 7 percent of MG Motor India’s cumulative sales.

Although an affordable, mass-market product below the Rs 15 lakh mark will go head on against the Tata Nexon EV, it will also give a fillip to EV sales in India, which is currently devoid of multiple options for the consumer.

However, carmakers are wary that the global chip shortage might continue to deter customer’s plans of switching to an electric or new car well into 2022 as well.

“The usage of semiconductors in the automotive industry has gone up in recent times with new models getting electronics-intensive features. Global lockdowns have impacted chip supply and there is a domino effect. However, we are working towards fulfilling our delivery commitments to customers and expect supplies to optimise by first quarter of the coming year,” signs off an optimistic Chaba.

ALSO READ 
Tata Nexon, MG ZS EV grab 86% of electric car market in first-half FY2022