SAIC Motors launched MG in October 2020 with the goal of conquering 1.5% of the new vehicle market in the first year and is very close to achieving it. Since its arrival, the brand has sold about 9,000 units in the country – of which 8,526 were sold between January and August 2021 – and has achieved 1.3% of the market.
“We are very close to our goal, the shortage of chips has affected us, like the entire industry, and that has limited us a bit to be able to supply all the demand we have in our 45 sales floors,” explained Zhang Wei.
Every month a ship arrives from China with new models and, so far, the brand has managed to overcome the shortage of semiconductors thanks to the inventory it accumulated during the first months of the year. But still, some models like the HS SUV have a month-long waiting list.
Zhang Wei foresees that SAIC Motors can recover in the last quarter of the year the global production volumes it had in 2019, which will allow the Mexican subsidiary to face more comfortably the demand forecast for 2022.
MG already occupies position 15 in the ranking of sales in Mexico and has even surpassed Chinese manufacturing brands such as Baic (position 27) and Jac (21).
“Our proposal is to offer consumers models with a high level of equipment and good finishes, at a very competitive price,” explained Josimar Hernández, director of product planning at SAIC Motors México. The ZS subcompact SUV, for example, is already in the top five best-selling models in the segment. “For 360,000 pesos [que es lo que cuesta la versión más cara]You get a model with a panoramic roof, leather seats, an 8-inch screen… And people like this, ”he adds.
This week, the brand introduced a fourth model: the RX8 SUV. With this vehicle with three rows of seats and off road capabilities, the brand seeks to attract customers looking for a multipurpose vehicle. In the last year there was a boom in off-road models, driven by an increase in road trips to domestic destinations, amid restrictions on flying to other countries.
SAIC Motors sees an opportunity to take advantage of this trend with a 777,000-peso vehicle that is capable of moving off the pavement, on dirt or sand, but still works for everyday activities.
Consolidating the MG brand in the Mexican market is the first step that the Chinese manufacturer has to climb to enter the United States and Canada. “The Mexican market is demanding, there is a very strong automotive culture here. Unlike what happens in China, here we are faced with very professional consumers, who are constantly looking for the best cars and also which are the best prices, ”says Zhang Wei.
SAIC Motors’ internationalization project “is very ambitious,” says Zhang Wei. The manager sees in Mexico a potential production and export platform to North America thanks to the T-MEC. “The United States is a giant market and of course we want to get there, but we are going little by little,” he says. “Being here has allowed us to understand the culture. In the medium term we plan to install a factory here from where we can export… Mexico is the gateway to the region ”, he concludes.