JSW MG Motor becomes first OEM in India to fetch 40% sales from EVs

New Delhi: JSW MG Motor India has strengthened its auto game by becoming the first OEM in India to derive 40% of its sales from its electric vehicle range. MG Motor has realigned its electric vehicle sales through different business strategies and achieved a 50% increase in 6 months, told Satender Singh Bajwa, Chief Business Officer at Morris Garages India.

MG currently has a diversified portfolio that includes Hector, Gloster, ZS EV and Comet as one of the most popular EV names. MG, which was selling about 400 Comet cars half a year ago, has now sold about 900 Comet cars last month, due to its repositioning strategy, i.e. customization for its customers. "Making it the first OEM in India to achieve 40% of its sales through EVs, our EV volume contributed around 40% to our total monthly volume in June, and a month ago it was 35%," he added.

The company recently repositioned its two variants; ZS EV (priced at INR 18.98 lakh) and Comet (priced at INR 7.45 lakh) to drive the growth of their electric vehicles in India.

This is attributed due to its raining days in 1H FY24 sales. In January, MG sold 2,922 units, witnessing a decline of 7.2% (YoY), while February and March recorded positive sales for MG. At the beginning of the current fiscal year (April), the company again recorded a 10% decline in sales year-on-year, while in May it remained somewhat positive, but the downward cycle continued in June as well, with MG recording a negative growth of 9%.

Talking about the need to re-strategise MG's technologies, Bajwa said: “I think it is very important that the product (ZS EV) has a very strong acceptance. This is the power of this product. Customers who use ZS EV are very happy with the product. When you buy an electric car, your main concern is autonomous driving. ZS EV, I believe the product largely meets customer expectations.”

Future plans

To strengthen its electric vehicle portfolio, MG Motor is planning to launch new products in the coming years, as previously reported. The first launch of a new product is expected to take place in Q3FY25, "After that, we are gearing up to have a new product every five to six months and we will be present in these segments," Bajwa said.

However, Bajwa said the company, which dominates its SUV portfolio, could enter the sedan and hatchback segment when it is "suitable" for the company, referring to the company's foray into different segments.

MG is emphasizing on its fundamentals in India with car sales while at the same time focusing on building consumer confidence. "Right now, we are in no rush as we just have to focus on building volumes. I think we are first trying to establish the basics and then bring the right products to the Indian market and then think about scaling it up gradually," Bajwa added.

The company currently has 400 touch points (sales, service, secondary sales points, etc.) with a goal of reaching 600 touch points this year, with an additional 20% of sales from non-urban areas.

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