MG Faces European Challenges: Higher Prices Enhance Brand Prestige, Says SAICExecutive
Shanghai, China – Despite facing significant challenges in the European market,MG, the British-born, Chinese-owned automotive brand, remains committed to its European expansion, according to SAIC executives. The company, a subsidiary ofSAIC Motor, China’s largest automaker, recently launched the MG ES5 all-electric SUV, signaling its continued push into the European market.
We are aware of the challenges in Europe, but we have many solutions, said Zhao Aimin, Deputy General Manager of SAIC International, during a media roundtable following the ES5 launch. We will continue to push forward in the Europeanmarket.
Zhao emphasized that MG’s European strategy will not be solely focused on electric vehicles, but will include models with other powertrain options. We are facing pressure about higher prices for our cars in Europe in the future, he acknowledged. However, MG will proactively adapt to changing circumstances, and we will optimize pricing in the retail market. The European market is a long-term strategic priority, and our sales target for next year will be higher than this year. This year, MG’s overseas sales performance has exceeded last year’s, andwe are on track for continued growth.
Yu Jingmin, Executive Deputy General Manager of SAIC Passenger Vehicle Division, echoed Zhao’s sentiment, suggesting that higher prices could actually benefit MG’s brand image. There are advantages to selling our cars at higher prices in Europe, he stated. It actually enhances our brand prestige. Going forward, MG will sell vehicles with multiple energy sources globally, not just focusing on electric vehicles. Our gasoline vehicle business remains unaffected.
These comments come amidst a challenging backdrop for Chinese automakers in Europe. In October, the European Commission concluded an anti-subsidy investigation against Chinese electric vehicles (BEVs), imposing a five-year final anti-subsidy duty. SAIC Motor was hit with the maximum 35.3% additional anti-subsidy tax. The company has since announced plans to appeal the decision to the European Court of Justice.
Despite the recent setbacks, MG appears determined to remain aplayer in the European market. The company’s strategy of offering a diverse range of powertrain options and focusing on brand prestige may help it navigate the challenges ahead. However, the long-term success of MG in Europe will ultimately depend on its ability to overcome the regulatory hurdles and price pressures it faces.
References:
- MG Faces European Challenges: Higher Prices Enhance Brand Prestige, Says SAIC Executive – IT之家, November 6, 2024.
- EU Imposes Anti-Subsidy Duties on Chinese Electric Vehicles – Reuters, October 29, 2024.
- SAIC to Appeal EU Anti-Subsidy Ruling – Xinhua News Agency, November 1, 2024.
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