Why the price of the MG4 is expected to increase over the next few years

MG could manufacture its electric cars in Europe, and this should have an impact on production costs. As a result, customers wanting an MG4 will probably have to pay more.

Today, electric cars still cost more than their thermal counterparts. And for good reason, the battery, which represents around 40% of the total cost, is still very expensive, due to the price of lithium. However, parity should finally arrive during the decade, especially for the smaller models.

A rising price

But if the price of electric cars remains high, to the point of still slowing down some customers, they are already tending to fall. Some manufacturers offer affordable models compared to the rest of the market, such as Tesla with its Model 3 and Model Y, whose value for money is unbeatable, or even MG. The Chinese firm, which is part of the SAIC Motor group like IM Motors, among others, is marketing its MG4 at an unbeatable price.

For the record, the electric compact is displayed from 29,990 euro, ecological bonus of 5,000 euros deducted. A very advantageous price, and currently one of the lowest on the market, while its rival, the Renault Mégane E-Tech starts at 33,000 euros, again with government assistance. It’s no wonder, then, that the MG4 often climbs the top-selling charts.

So much so that it overtook the Tesla Model 3 last May in Europe. An incredible success for the compact, which we had already tried a few months earlier. This led the SAIC group to want to develop in Europe and set up a factory in order to manufacture its cars on site. The goal is both tospeed up deliveries, but also to still be able to claim the ecological bonus. For the record, France wants to remove it for vehicles produced outside the European Union.

But this strategy could have a negative impact on one point in particular: the price of cars. If logistics costs are reduced, producing vehicles in Europe is not cheap. Much less than in China at least. It is therefore to be expected that the MG4 is potentially more expensive over the next few years, as a spokesperson for the brand reports.

Not for now

William Wang, in charge of the European and British branch of MG spoke to journalists fromAutomotive News on this subject. He explains without language of wood: I expect that it is more expensive to produce locallybut when you’re selling 200,000 cars a year, it’s time to do it“.

Indeed, the Chinese firm sold no less than 99,789 vehicles, all models combined, on the Old Continent during the first six months, compared to 42,296 over the same period last year. However, SAIC Motor is still not among the world’s biggest electric car sellers, a ranking currently dominated by Tesla, BYD and Volkswagen.

In total, 29,458 MG4s were sold in Europe since January, making it the brand’s second most popular model, after the MG ZS with 35,753 units. Suffice to say that the demand is very strong. However, William Wang is aware that producing in Europe means“Working with the people on the spot. It’s a stronger commitment“. The firm is currently in the process of looking for a site where to set up its future factory in two or three years.

Several countries are being studied, depending on labor and energy costs in particular. France should not be at the top of the list, while the cost of electricity continues to increase over the months. The firm will join CATL as well as BYD, which have or will also set up production sites on the Old Continent.

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