MG targets 20 percent sales from EVs by 2024

With the ZS EV averaging 700 monthly bookings and a mass market electric crossover in the pipeline, MG expects EVs to contribute significantly to its volumes.

Published On Dec 28, 2021 02:54:00 PM

11,461 Views

MG targets 20 percent sales from EVs by 2024

MG Motor India is betting big on electric vehicles (EVs) and is all set to come up with its second all-electric product by March 2023. The next MG EV is touted to cost Rs 10 lakh-15 lakh. With a mass market offering in the pipeline, MG has high hopes from its EV portfolio. “We expect EVs to contribute over 20 percent to our overall sales in the next two years,” said Rajeev Chaba, president and managing director, MG Motor India, in an official statement.

One in five MGs sold expected to be an EV by 2024
Upcoming MG EV to compete with the Tata Nexon EV
MG ZS EV registering an average of 700 monthly bookings

Upcoming MG EV to be a volume offering

As we have previously reported, MG says that the upcoming EV will be based on a global platform, but customised to Indian regulations and customer tastes. The company is also looking to achieve high localisation levels, including assembly of battery and other components, to meet the government’s guidelines for the production-linked incentives (PLI) scheme.

MG’s affordable, mass-market EV will go head-on against the Tata Nexon EV, and it can also be expected to give a fillip to EV sales in India, which is currently devoid of multiple options for the consumer. For now, the only other offering in the sub-Rs 15 lakh category is the Tata Tigor EV.

MG ZS EV sees strong demand

MG’s first EV – the ZS EV – was launched in January 2020 and is currently available in two variants priced at Rs 21 lakh and Rs 24.68 lakh (ex-showroom). It is equipped with a 44.5kWh Li-ion battery pack and has a claimed range of 419km on a single charge.

MG Motor India has sold a cumulative 3,838 units of the ZS EV over the 22 months since its launch. The company says it is currently struggling to meet the surge in demand for the model, which is averaging 700 bookings every month.

Notably, at 2,696 units, 70 percent of the ZS EV’s sales have come over the first 11 months of 2021. The all-electric crossover has contributed seven percent to MG’s total sales this year.

For reference, MG witnessed sales of 37,723 units in the January-November 2021 period across six models, which translates into a year-on-year uptick of 56 percent, compared to the 24,152 units the automaker retailed in the same timeframe last year.

Outlook on semiconductor supply

Though the nascent EV passenger vehicle market has shown some signs of evolution during the past two years, carmakers are wary that the global chip shortage might continue to deter customer’s plans of switching to an electric, or a new car, well into 2022.

“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 the first quarter of the coming year,” signed off an optimistic Chaba.

Also see:

MG Marvel-R EV gets 400km range; new flagship SUV for the brand

MG India's upcoming EVs could include a compact SUV, small hatchback

MG looking at more affordable EVs