JSW MG Motor’s Plans for Luxury Car Launch
JSW MG Motor’s Plans for Luxury Car Launch
Overview of Upcoming Luxury Vehicles
JSW MG Motor has unveiled plans to launch four upscale vehicles in the coming two years through a fresh showroom concept called ‘MG Select.’. This first luxury vehicle should be available in showrooms by early 2025.
Expansion of ‘MG Select’ Showrooms
The company wants to open as many as 12 ‘MG Select’ showrooms within the next six months, the company said. JSW MG Motor said it was planning to launch four luxury cars in the next two years and would sell them through a new showroom line called ‘MG Select’.
Focus on New Energy Vehicles (NEVs)
This company, 51% owned by the JSW Group and other Indian entities, will solely produce “new age energy vehicles,” including strong hybrids, plug-in hybrids, as well as electric vehicles. Gupta also pointed out that for luxury segment EV penetration, it stands at 7% much higher than 2% in mainstream categories; hence the appetite for innovative powertrains is growing.
Growth of Luxury Car Sales in India
For example, in 2023 they sold 45,000 luxury cars, which is a 20% rise in annual sales. So in that sense, the segment comprised 1% of domestic sales. Although the first luxury car will not come off the stands until the first quarter of 2025, the company plans to open 12 “MG Select” showrooms in the next six months, according to Gaurav Gupta, Chief Growth Officer at JSW MG Motor India, to Business Standard.
New Definition of Luxury
The firm, where the JSW Group along with other Indian entities now holds a 51 percent stake, would launch only “new age energy vehicles” in the luxury category. With the accelerating growth of electric vehicles in the domestic luxury car market, JSW MG Motor India is all set to foray into the segment with its new energy vehicles-the category includes electric, hybrid, and plug-in hybrids.
Plans for Broader Distribution and Pricing Strategy
At a time when the segment is dominated by German marquee brands, the recent joint venture formed between MG Motor and Sajjan Jindal-promoted JSW Group has a long way to go to attract buyers into its fold. We would be bound to the new energy vehicles — strong hybrids, plug-in hybrids and electric vehicles.
Competition and Market Outlook
There is only a seven percent penetration of EVs in the luxury space in India versus a two percent in the mainstream product category. There is a higher appetite in the luxury segment to look at these new powertrains and new fuel options across different body styles (roadster, sport utility vehicle etc), ” added Gupta.
JSW MG Motor’s Approach to Luxury Car Launch
Growth in the Indian Luxury Car Market
In the luxury car segment, India sold about 45,000 units in the year 2023. Which has result in a growth of almost 20 percent per year. But this is only one percent of the domestic automobile industry’s total car sales. When asked how will JSW MG’s luxury cars be priced, Gupta replied, “We always have been defining luxury at a price point perspective.
Defining Luxury at JSW MG Motor
The new definition of luxury is a mix of price point, exclusivity in the experience and accessibility of that experience”. He said the thought behind MG Select is to expand the luxury car franchise to Indian customers. “We are planning for a four to five car display to begin with at MG Select, which will imply a minimum of about 4000 square feet of display space.
Launch of ‘MG Select’ Showrooms
We are also going to be inviting potential dealer partners to come and join us. And we will be looking at young new generation entrepreneurs with an appetite for luxury to join us,” he mentioned. JSW MG is not the first auto behemoth to opt for two different dealership lines for its brands. Maruti Suzuki India sells its premium cars at Nexa showrooms and Hero MotoCorp sells its high-end two-wheelers at Premia stores.
Opportunity in the Luxury Car Market
Anyway, company is considering this as a chance. There really hasn’t been too much variety in the selection of luxury cars in India for those buyers. Hence, we find a market to provide affordable luxury to these consumers in the form of our NEVs,” Gaurav Gupta, chief growth officer at JSW MG Motor, told ET.
Strategic Rollout of Luxury Models
He stated the company would look to replicate the success seen with the MG Hector brand in the Rs10-20 lakh SUV segment five years back. As part of this strategy, the company would launch the first of four ‘luxury’ models slated to be released over the next two years for the upper segment, beginning Q1, 2025. These vehicles, however, will initially be available only through a separate retail channel called MG Select in twelve cities.
Offering a Curated Customer Experience
Those would attempt to offer a “curated experience” to customers. MG Motor is also working on other distribution models for cities where it won’t have a luxury outlet. “The idea is to make it accessible to customers. How do they own a piece of MG Select.” he said. When asked about the price point at which MG plans to position its luxury range, Gupta said, “Price will be just one of the elements.”
Price Point and All-Inclusive Packages
The company wants to offer an all-inclusive package. Much the same as it has done with the Windsor, a compact utility vehicle, which went on sale earlier this month. It was the first in the passenger vehicles sold in India to offer an option to customers to use battery-as-a-service and pay per month as per usage.
Disrupting the Luxury Car Segment
Gupta said JSW MG Motor now aims to “disrupt” the luxury segment and challenge the “status quo.” While the luxury car market still contributes less than 2% to India’s overall car market, Mercedes-Benz, BMW, Audi, Jaguar Land Rover, Toyota Lexus, and Volvo Cars still continue to dominate that segment.
The Role of Electric Vehicles in the Luxury Market
And for the 10th consecutive year, now, it is Mercedes that leads this particular space, with more than 90% of the 45,000 to 48,000-unit-a-year that is high-ticket, over Rs 43 lakh, held by these three German brands.
The Role of Electric Vehicles in the Luxury Market
Still, at the current penetration rate of 6%, the share of EVs in the luxury segment is three times that of the mass car market. Because the buyers in the segment are embracing the trend of electrification much faster than mass-market customers do, carmakers have been gradually building up an EV offering line-up for the Indian market.
Synergy Between JSW and SAIC
BMW India Top Luxury EV Market in India. That is because of the policy that only the government sanctions on EVs without offering any incentives for hybrids or plug-in hybrids. Gupta said the company hasn’t offered any incentives currently but the company will be able to launch hybrids and plug-ins. This synergy coming in from the investors- JSW and SAIC- would bring all styles of models and multiple powertrain options to MG, according to him.