MG Motor India will focus on profitability while also growing its operations, its top executive told reporters at the unveiling of its two-door electric car, the MG Comet. Rajeev Chaba, president of MG Motor India, said the company broke even last month and aims to make “some money” in the ongoing calendar year.
Bookings for the Comet, likely to be MG Motor’s most affordable EV so far – will open in May. Chaba said the company is undertaking measures to balance volumes and profitability to sustain its green drive. “We will not lose money on this car (positioned in the mass segment). We are working on ways to balance volumes and profitability,” he said.
The company expects about 30% of car sales to come from the two EVs – ZS and Comet. MG Motor India closed last year with total sales of 48,000 units. The MG Comet, developed at an investment of INR 700-800 crore, will have localisation levels of more than 50%. It will offer a range of 230 km on a single charge. The company has yet to announce the vehicle’s price.
Chaba said the company has worked hard to deepen localisation levels to keep prices competitive. The vehicle’s local content will increase to 60% by the end of the year. He further added, MG Motor took a conscious decision to keep the range suited for city drives, as a larger battery would have pushed up the cost of the vehicle.
He said while the company will launch more than one variant of the car, there are no plans at this moment to extend the range of the vehicle. At present, Tata Motors has a sole offering at the heart of the market–the Tiago EV with a starting price of ₹8.69 lakh (ex-showroom, Delhi). “This (Comet EV) is a good solution. It may not be the best solution for everyone. And we are serious about not selling this vehicle to certain categories of people,” Chaba said. “It is for consumers who commute within cities, drive 80-90 km every day. If you want to go intercity, carry more load, want to travel with family, then we have the ZS EV.” The company will conduct a “vibe check” on receiving enquiries to assess the requirements of buyers and advise them accordingly to make bookings. Chaba said consumer awareness about EVs has increased in India and with several affordable EVs set for launch throughout the year, sales in this category should more than double in 2023.