Well-known carmaker could launch cheap electric cars in South Africa – MyBroadband

South Africans could see a previously familiar car badge back on local roads before the end of the year — potentially with an electric flavour.

Car Magazine recently reported that Chinese-owned MG Motor was looking to establish a dealer network in South Africa.

Adding further fuel to this rumour is that former General Motors Sub Saharan Africa executive Ian Nicholls was appointed as senior advisor for MG Motor South Africa in April 2024.

In a description of his role, Nicholls said he was privileged to be part of the team introducing the “exciting MG brand” to South Africa in the manufacturer’s centenary year — which is 2024.

MG Motor holds the rights to the MG brand and badge created by “Morris Garages”, founded in the UK in 1924.

The company was particularly well-known for its line of small and light sports cars but also helped create one of the most iconic people movers — the Mini — launched in 1959.

The Mini was developed and built by British Motor Corporation (BMC), which was formed in 1952 after Morris and rival UK manufacturer Austin merged.

Several MG models were also assembled in South Africa, starting with the MG TD in the 1950s, followed by the MGA and Z Magnettes.

Despite the company merging or being acquired by several other automotive companies up to the 21st century, the “MG” marque remained in use until 2005, when its then-parent group, MG Rover Group, shut down.

The brand was acquired by SAIC Motor, a Chinese state-owned manufacturer, in 2007.

The company’s relaunch of MG included a brief re-entry into the South African market from 2011 to 2016. However, it had a lacklustre local offering that failed to compete with the value offered by local carmakers.

Should a relaunch occur, the company will likely rely on its much-expanded assortment of budget vehicles to drive its resurgence in South Africa.

MG has yet to confirm its plans or the models it will offer locally, but there are some likely contenders on the cards when considering current car buying trends in South Africa.

Firstly, given local drivers’ apparent obsession with higher clearance crossovers and SUVs, an MG model with this profile is likelier to sell well.

Secondly, the MG models sold in South Africa are likely to be sourced from India, as MG’s biggest target market will be customers looking for models with a good balance of value and price.

The vast majority of South Africa’s sub-R500,000 cars come from India.

The country accounted for a whopping 42% of all passenger vehicles sold in South Africa in 2023. In addition, 11 of the top 20 best-selling models in South Africa were made in Indian factories.

All South Africa’s Suzukis and many of the popular affordable Toyota, Kia, Hyundai, Renault, and Nissan models come from India.

MG Motor India currently manufactures three petrol-powered crossovers or SUVs, the Astor, Hector, and Gloster, with the following starting prices:

• MG Astor (crossover) — From 998,000 Indian rupees (R211,080)
• MG Hector (compact SUV) — From 1.399 million Indian rupees (R295,924)
• MG Gloster (large SUV) — From 3.8798 million Indian rupees (R820,753)

Based on pricing alone, the first two models seem the most likely to be considered for a South African launch.

The Astor is the Indian version of the MG ZS and could compete with models like the Suzuki Fronx, Toyota Starlet Cross, Kia Sonet, Hyundai Venue, Nissan Magnite, and Chery Tiggo 4 Pro.

The Hector’s competition would likely include the Suzuki Grand Vitara, Toyota Urban Cruiser, Chery Tiggo 7 Pro, Kia Seltos, and Hyundai Creta.

The Indian factory also produces two fully-electric cars — the ultra-compact MG Comet hatchback and MG ZS compact SUV — which could potentially add more affordable budget options to South Africa’s EV mix.

In India, these models start at 699,000 rupees (R147,964) and 1.898 million rupees (R401,767), respectively.

When factoring in South Africa’s 25% import duty on cars from outside the EU as well as ad valorem taxes, their price tags will likely be substantially higher if they arrive on local shores.

The difference between the Indian and South African price tags of comparable models is typically around 50%.

If that were applied to the Comet and ZS, they could sell for around R225,000 and R600,000, respectively.

The table below compares the specifications of the entry-level MG Comet and MG ZS EV models made in India.

Given its crossover design, significantly more power, and longer range, the MG ZS EV is more likely to appeal to South African buyers.

The model has recently performed very well in the UK, where it was the 9th best-selling car overall in June 2024, beating the Tesla Model 3.

If it is priced under R600,000, the MG ZS EV will compete against the BYD Dolphin and GWM Ora 03, which are already its biggest rivals in markets like Australia, New Zealand, and the UK.

South African car charging equipment provider EVCharge believes that MG’s affordable line-up and lifetime EV battery warranty, which it recently introduced for four other electric models, could be game-changers in South Africa’s fully-electric market.

The other electric cars that the company makes in factories in other parts of the world are the MG4 electric hatchback, MG Maxus 7 and Maxus 9 7-seat MPVs, and the MG Cyberster convertible sport roadster.

Below are photos of the MG ZS EV, the fully-electric car the company is most likely to launch in South Africa.

MG ZS EV