Re: MG Motors India formed by SAIC, China’s largest automobile company Quote:
Originally Posted by avishar Instead of the MG ZS, they should get the Roewe RX3. It is based on the same underpinnings. Slot it in in-between the Brezza and Creta. Market it with the MG brand ofcourse. | MG Motor likely to rebadge Roewe cars for India
A decision on cross-badging will benefit MG Motor as it has currently a limited range comprising a hatchback, sedan and an SUV
MG Motor should focus on its namesake brand in India since it is better known and has a more favourable perception than Roewe, say analysts.
Shanghai: MG Motor India Pvt. Ltd can tap the entire portfolio of sister brand Roewe to bolster its product range in the country even as it prepares to introduce its first model early next year. Cars under the luxury Roewe brand can be rebadged as MG Motor and marketed in India, said Rajeev Chaba, president and managing director of MG Motor India. Both MG Motor and Roewe brands are owned by China’s SAIC Motor Corp., the parent of MG Motor India.
“(The) MG Motor and Roewe brands belong to SMPV (SAIC Motor Passenger Vehicle Co.). All the products of SAIC Motor (from the MG Motor and Roewe brands) are available to the global brand MG,” Chaba said in Shanghai earlier in October.
MG Motor and Roewe already share vehicle platforms, he said.
A decision on cross-badging will benefit MG Motor as it has currently a limited range comprising a hatchback, sedan and a sport-utility vehicle (SUV). Roewe has more products, including the RX3 and RX5 SUVs and its latest launch Marvel X electric SUV.
According to analysts, MG Motor should focus on its namesake brand in India since it is better known and has a more favourable perception than Roewe. “When they are starting off, I would worry about establishing the main brand, which is MG Motor. Because Roewe is predominantly considered Chinese, I don’t see a reason for them to experiment with it here unless there is a long-term plan to gain significant market share with a twin-brand strategy,” said Deepesh Rathore, co-founder and director at consultancy firm Emerging Markets Automotive Advisors.
MG Motor plans to start selling its first product, a mid-sized SUV, in India in the second quarter of 2019. The second car, to be introduced within a year of the first, will be a fully-electric SUV, the company said last week.
Founded in the UK in 1924, MG is an abbreviation for Morris Garages.
With an investment of more than ₹5,000 crore over the next six years in India, MG Motor’s foray is SAIC Motor’s attempt to gain a foothold in the burgeoning domestic automobile market, after General Motors Corp., one of SAIC’s partners in China, exited India in May 2017.
The factory can currently produce as many as 80,000 vehicles a year, which “will be expanded to 200,000 units going forward depending upon the requirement”, the firm said.
MG Motor’s electric model could be the fully electric Roewe ERX5 SUV, as Mint had reported on 24 April that MG Motor was testing this SUV in India along with SAIC E100 mini car. MG Motor plans to build its entire portfolio of vehicles, including electric vehicles, in Halol, Gujarat, with an aim of sourcing 80% of parts locally.
MG Motor India plans to launch a vehicle each year through 2021, with eight already being tested, said P. Balendran, the company’s executive director.
The writer was in Shanghai at the invitation of MG Motor India. Link
The Upward Market trend and price hikes by all the major players in the Indian Automotive industry has created an opportunity for these Chinese Giants.
They could repeat the success story of the Mobile industry in the Automobile industry. (Oppo, Vivo, Xiaomi)
Today
Entry level hatchbacks like Santro hav crossed 7L OTR
Entry level sedans have crossed 11L OTR
There is a Huge gap !
If SAIC/ MG come up with - Aggressive pricing strategy - Price does Matter !
- Maintain good quality levels as Rajiv said "Safest Car" with 5 stars NCAP ratings
- Get Good looking Models
- Reasonable ride and handling
- Average Fuel Efficiency
- Give genuine extended warranties - 5 years/100000km
- Keep your spares cost reasonable
and people won't mind !
People know today that even Mercedes and BMW have factories in China
I do have first hand experience of some Chinese Brand cars, they are good. And will succeed in India too, if marketed properly.
Trends are changing
People look for new phones every next year
And look for new Cars every 4-5 years
There's huge potential in India
Just like Jio captured the Telecom market
The masses are looking for VFM options
Maruti's success too is built on the VFM image
But Today Maruti service costs have gone much higher
It is no longer cheap to own or maintain a Maruti or Hyundai or Honda
Just the Resale mentality and huge network facility is pulling the crowds to Major showrooms
Give the market a VFM product and it will Click, it will Sell,
be it a KWID or NEXON
If MG gets the strategy right, the potential is obviously there.
Wish them all the best.
More competition is Good. Welcome.
More the merrier !
Last edited by JS Kwt : 27th November 2018 at 02:28.
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