MG is relatively one of the newer brands in India. It started its operations in our market in mid-2019 with Hector being its first product on sale. The Hector was launched to target the most profitable and one of the fastest-growing segments in India, the mid-size SUV segment. With players like Hyundai Creta already a segment leader by quite some margin, MG did bet big on the Hector. To be honest the product was equipped with all the latest techs and gizmos. Additionally, the road presence of an SUV was also there. Hence, it found instant success with Indian buyers. Now, MG is planning to launch the updated Hector tomorrow.
MG India- Reasons for this growth
MG has at least a couple of launches planned for the coming months. This includes the new updated Hector due for launch on January 7. Thereafter, the 7-seat version of the Hector Plus is due for launch. Eventually, MG will get into the fastest-growing segment in the country, the compact SUV segment with its ZS model. So it isn’t too hard to see MG’s product offensive strategy. They want to keep the brand fresh so that the customers always have an option to choose from a wide range of products.
Another huge reason for MG’s growth is product diversification. MG has a mid-size SUV in its fleet. Then there is a premium SUV in Gloster. Apart from these two, they have also entered the EV race with ZS EV already selling well in India. In December alone, the ZS EV sold 122 units, which is good as the EV market is expanding slowly and steadily. To be among the first brands to enter the EV race will surely help in the long run.
Also read: MG in 2021 – All launches planned!
MG India- Competition
MG sold over 4,000 units in December 2020. When compared to December 2019, this figure stood around the 3,000 units mark. This indicates a year-on-year growth rate of over 33%. Considering the fact that MG is relatively new in the market, it did assess the market sentiments pretty well and came up with the products that the masses wanted. However, the competition has become a lot tougher with a multitude of players entering our market in the compact SUV segment this year. For example, the French automaker, Citroen has announced that it will launch 2 new products in India. Both of these beings SUVs.
The competition from the already existing players like Hyundai and Tata has not made it easier either. In addition to that, the launch of Mahindra XUV500 is just around the corner. That will be a direct competitor for the Hector Plus. So, the market is very challenging and launching new products with a ton of features and aggressive pricing could be the only way to succeed in the Indian market. With new launches, it will be interesting to see if MG is able to sustain this growth or will the other automakers take away the market share from MG.