Heavily affected by the increase in customs duties, MG will continue to offer electric cars at aggressive prices… thanks to large stocks. Is it moving towards hybrids?
A sudden halt in growth. In the first half of 2024, MG saw its sales decline by 29% in France. A significant drop, which can be nuanced by pointing out that the comparison is with a 2023 year that had exploded all records thanks to the success of the MG 4.
But the Chinese company was affected by the loss of the bonus on its electric models. It reacted immediately by implementing discounts that offset the loss of government assistance. Apparently, this was not enough. The bonus is an important selling point for buyers.
Despite competitive starting prices and discounts, MG electric vehicles still remain well-placed against the competition. However, this may change due to Europe. The Union has confirmed the implementation of a provisional compensatory duty on imports of electric vehicles originating from China.
A record surcharge
The new rate depends on the manufacturer, decided based on their cooperation during the investigation conducted by Europe to determine to what extent Chinese manufacturers have been supported by Beijing. For MG, the penalty is maximum. Its parent company, SAIC, has been assigned a rate of 47.6%, instead of 10% previously!
MG expressed its “disappointment” with this European decision. In a statement, the French subsidiary “expresses its opposition to this protectionist trade measure and believes it will constitute an excessive entry barrier.” The brand indicates that European customers will be the “big losers”, implying that they will no longer have access to affordable electric vehicles.
In its communication, MG says it is “committed to doing everything possible to reduce the impact on its customers.” For now, the company is maintaining its list prices on electric vehicles. To achieve this, the manufacturer has filled its stocks. The MG 4 and other electric models are still offered at aggressive prices, always with a grant. The compact starts at €24,990.
A new hybrid offer at a low price
For the future, it is less clear. Prices may rise due to the surcharge, but it seems that the manufacturer will do everything to limit this. We have already seen its ability to quickly offer a €5,000 discount instead of the bonus on a compact car that is already much cheaper than its competitors!
If electric sales take a hit, MG seems to want to make up for it with hybrids, which are not affected by the increase in customs duties and do not qualify for the bonus. Therefore, Europe or France cannot prevent MG from offering low prices on hybrids.
The manufacturer proves this by launching the MG 3 city car with true hybridization at €19,990. Its engine will also be used for a new small SUV launching soon, which will also have aggressive pricing. Additionally, MG will unveil the new generation of its plug-in hybrid SUV EHS in a few days, promising an electric mode range of 100 km.