autoX Awards 2024: MG Intervierw

JSW, as an Indian conglomerate, is new to this industry, and MG as well has only been here for 5-6 years. What is the culture like at MG compared to a more traditional Indian automotive manufacturer?

I think you’ve asked a very valid question. I’ve spent almost 30 years in this industry now and have seen a lot of manufacturers. The beauty of MG is that it’s unlike a traditional auto company. The culture that we have inculcated is more of a startup in terms of our working style. But when it comes to the human touch, we are a very people-centric organisation. So, it is the ideal combination of a startup culture and a company that has a very high emotion and very high value for the human touch.

What does the JSW stake mean for MG in India?

As you know, JSW is doing very well in the fields that they’re in. Mr. Jindal has been driving a passion. I mean this is his passion. He’s been wanting to be in the automotive industry for quite some time, and when this opportunity came, he grabbed it. I think it’s good for both the organisations because we will learn some good practices from them and they will learn some things from us. Overall, it’s going to be a win-win situation for both organisations. I would say it’s an ideal marriage – that is what I would call this collaboration.

Battery as a Service (BaaS) is a very innovative program. What percentage of buyers of the Windsor EV have chosen to go down that route versus an outright purchase?

This is a new concept, and anything that is new or radical takes time to get established. So, currently, we’re seeing a run rate anywhere between 12 to 14%, which is not a bad start. Because, still in India, consumers would want to own the whole asset completely and we knew that. But we are quite impressed with the response that we have received to start with.

MG’s got a strong heritage as a British sports car manufacturer. And MG has recently introduced the Cyberster in the global market, which is an electric, high-performance sports car. Is there a place for a model like that in India?

You would have heard that we are going to introduce MG Select in the market – a different premium channel, where we are going to bring accessible luxury cars to the Indian market. Incidentally, the car that you just mentioned happens to be one of them. 

Is investing in the EV space inherently more risky than investing in the ICE segment, purely on the basis of the obstacles and uncertainty that still face mass EV adoption?

The government has clearly laid out the roadmap. The government is very keen that EV adoption should move up. I think it’s the collective responsibility of the manufacturers to grow this market. Currently, this market is about 2%. Last month, it was close to 2.8-3% penetration. So, 2-2.5% is the average penetration.

I think there’s huge scope for this market to grow. But what is important is that you need to bring in good products. The price differential that used to exist between ICE and EVs is reducing. That will reduce further going forward. Secondly, the way we have launched our programmes is giving consumers a lot of confidence. So, when you bring in good quality cars that live up to what you say in terms of range, serviceability and quality, I’m sure the market will continue to move up. Because, at present, it’s hardly anything.

Even if we say, by 2030, the EV penetration could be close to anywhere between 16 to 18%, that will be a good number – a substantial jump. Let’s not forget that in very advanced markets, some of them are countries in Europe and some of the other advanced markets, EVs have reached 20-25% of the market. People have started liking the technology, because they have their own set of advantages, as they are noiseless vehicles with zero tailpipe emission. So, I feel adoption is going to move up. 

Looking at the market as a whole, it has been a good run for you this year. Next year, what does it look like – there seem to be some economic headwinds at the moment?

Obviously, if you look at the year gone by, it’s hasn’t been too great in comparison with the post-Covid era of the past 4-5 years. But we know that this industry is very cyclical. You see 3-4 years of good growth, and then you have 1-1.5 years when you taper down or rather you plateau – you remain flat. I think we are going through that phase. Things will start looking up. Maybe it may take six months more, but things will start looking up. Next financial year, hopefully, should be better.

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Even if we say by 2030 the EV penetration could be anywhere between 16 to 18%, that would be a good number – a substantial jump