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News Article

MG Motors Aims to Be a Strong Contender in Mexico

By Jorge Ramos Zwanziger | Tue, 05/04/2021 - 20:44

MG Motors, a UK company backed by China’s largest car manufacturer SAIC Motor, is quickly gaining up to other Chinese carmakers operating in Mexico. The company now aims to reach a 1.5 percent participation in the Mexican market, reported MBN, and to do so it needs to sell between 15,000 and 16,000 units per year.

MG Motors, which came to Mexico in late 2020, is now making waves in the local market. From October to April, the company sold over 2,000 vehicles and opened 34 dealerships in the country despite the pandemic, reported Expansion. MG Motors has sold more vehicles Baic and half as many as JAC, the other two Chinese OEMs operating in Mexico. 

The company arrived in Mexico with three different vehicles: a small sedan and two SUVs. “The bet is to offer products with high equipment at a really good price,” said José Ángel Sánchez, Sales and Network Development Director for SAIC Motor Mexico, to Expansion. The company offered different incentives for Mexican consumers including a seven-year guarantee on the car’s powertrain, the seven first services free of cost, or seven years of road support, explains Expansion. “We knew we were arriving at a complicated environment, as the pandemic pushed customers away from salespoints,” explained Sanchez.

Does This Mean an Electric Future?

Some Chinese OEMs are touting their experience in EVs to strengthen their position in Mexico. JAC, for example, sells five different electric models in Mexico, making it a strong contender in the EV market. MG Motors also markets itself for its knowledge and experience on EVs thanks to its parent company SAIC Motor, which is the seventh-largest automotive manufacturer in the world and has increased its new energy vehicles (NEVs) sales by 73.4 percent in 2020, according to its website. According to MG Motor, SAIC focuses on the development of NEVs, which include “battery-electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs) and fuel-cell electric vehicles,” explains the company. Recently, MG Motors used Auto Shanghai 2021 to introduce a new vehicle concept called Cyberster, a two-door roadster with battery-electric power, reports Motor Authority. MG announced that the vehicle will have 5G connectivity, 0-62 mph acceleration and a battery that can last for 500 miles, which competes with Tesla’s Roadster, another EV vehicle reports AutoExpress

The data used in this article was sourced from:  
MBN, MG Motors, Expansion, Motor Authority, AutoExpress
Photo by:   Alessio Lin, Unsplash
Jorge Ramos Zwanziger Jorge Ramos Zwanziger Junior Journalist and Industry Analyst