Hold on until November. This is the strategy implemented by the Chinese manufacturer MG in response to the increase in customs duties on electric cars imported from China to Europe.
Although its vehicles will be affected by increased duties of up to 38.1% from this Friday, MG France confirms that it has sufficient vehicles to guarantee its sales for the next four months. In this way, the manufacturer will be able to “maintain [ses] prices until November”. Precisely on this date the 27 must give their final approval to the maintenance of these customs duties.
“We knew what to expect last year, so we took precautions,” explains Julien Robert, Vice President in charge of sales and network at MG Motor France, in Challenges.
Fixed prices for the coming months.
There are around 5,000 cars in stock at the group’s 163 dealerships, more than half of which are MG4s, the manufacturer’s compact electric car, MG has informed us.
MG also confirmed to BFM Business that for the next three months the manufacturer will continue to compensate for the eco-bonus that its electric cars are no longer eligible for this year, i.e. a discount of 5,000 euros. MG refuses to specifically quantify the consequences of the new customs duties on the prices of the MG4, mentioning only an increase of between 8,000 and 10,000 euros on the gross price (before the implementation of a specific commercial policy for each country).
Last year, MG France sold 34,000 MG4s, a figure that is expected to fall this year, especially with the loss of the bonus. According to AAA Data, the market share of compacts fell from 7% last year in the electric segment to 3%. MG wants to reassure itself by stating that order intake was very dynamic in June, after a difficult spring.
The hybrid, the other field of conquest
However, the Chinese brand is not only focusing on electric vehicles to gain market share in France and Europe. Its advantage this year is hybrids, the engines popular with consumers. Hybrids are not affected by the increase in customs duties, even if they come from China.
Two models in particular will serve this strategy: the MG3 Hybrid+, a small hybrid vehicle in the B segment, and the ZS, a mid-size SUV. MG is thus announcing its MG3 from 19,990 euros while the Renault Clio E-Tech is sold for 4,000 euros more.
Source: BFM TV
