JSW MG Motor India – the country’s newest car company that was formed last year after the merger between India’s JSW Group and China SAIC Motor – will enter the premium car segment with a new sales channel called MG Select.
Gaurav Gupta, chief growth officer, JSW MG Motor India, who will spearhead MG Select, told FE that the aim is to launch exclusive experience centres in 12 cities which will have a luxury car portfolio of four models within two years, with the first two models expected in 2025 and two the year after.
“With MG Select, we will target the growing ‘accessible luxury’ segment in India,” Gupta said. “This segment is characterised by consumers seeking exclusivity with premium products and elevated experiences.”
He added that the aim is to make luxury more ‘accessible’. “Today, the luxury car segment is just 1% of the market, and people are stuck at high price points,” Gupta said. “We aim to change that.”
All these four models will be new-energy vehicles (NEVs) – a mix of battery electric vehicles (BEVs) and plug-in hybrid EVs (PHEVs). Gupta said that while the EV penetration in the mass-market segment is just 2%, in the luxury segment it’s about 7%. “It implies that people in the luxury segment are open to green technologies, and NEVs will be our differentiators.”
All these four models will be made in India, Gupta said.
A luxury segment analyst told FE that JSW MG is basically changing the definition of ‘luxury’, and wants luxury to be seen in terms of not just high price point, but also in terms of curated experiences. “These MG models won’t be a competitor to, let’s say, a Mercedes-Benz or BMW, and will be priced lower. It’s like Michael Kors, Chanel and Louis Vuitton are all luxury brands, but we know that Michael Kors is far more affordable and accessible, even though in high-end malls we see a Michael Kors showroom next to a Chanel or a Louis Vuitton showroom,” the analyst said.
Gupta said that the traditional concept of ‘purchasing’ is evolving, with Indian consumers increasingly shifting towards ‘accessible luxury’. “MG Select aims to position itself as a key player in this segment by offering an elevated brand experience to new-age customers, who aspire for premium brands,” he said.