Displayed from 28,990 euros, the new MG 4 is significantly cheaper than its rivals, the Volkswagen ID.3 and other Renault Mégane E-Tech. But for all that, it still brings money to the brand. How is it possible ?
Since its arrival in Europe, the new MG 4 has shaken all traditional manufacturers. And for good reason, the Chinese compact is displayed at an unbeatable price, sinceit starts from 28,990 euros, ecological bonus not deducted. We could then logically think that the brand is cutting back considerably on its margin, while most Asian brands arriving on the Old Continent display prices close to those practiced by their European rivals.
An attractive price
Indeed, and for comparison, the Volkswagen ID.3 starts from 46,100 euros, while the Renault Mégane E-Tech has an entry ticket of 37,200 euros, ecological bonus not deducted. The Peugeot e-208, which competes to a lesser extent with the Chinese compact, is displayed from 34,800 euros in its entry-level Like version, with however a much lower power, 136 horsepower against 170 for the MG 4.
Inevitably, we say to ourselves that the brand agrees to lose money in order to ensure a place of choice in the European automotive landscape. However, according to Automotive Newsthat’s not really the case, while MG does claim to be making money in Europe with its new electric creation.
But then, how is this possible? Journalists remind us that the MG 4 uses LFP (lithium, iron and phosphate) batteries supplied by CATL and costing less than the NMC accumulators (nickel, manganese and cobalt) chosen by its competitors. According to specialists, the first solution would cost 9% less than the second.
MG has also chosen to use batteries cell-to-packwith cells directly implanted in the chassis, allowing to reduce costs as well as thickness, to the benefit of habitability. Finally, the compact uses a completely new modular platform designed for electric models, which will subsequently be used on all other vehicles in the SAIC group, and therefore easy to make profitable.
A predictable success
One of the secrets that also allows the MG 4 to display an accessible price is also to reduce the technological endowment. The compact, for example, ignores GPS navigation, replaced by that of the user’s smartphone thanks to Apple CarPlay and Android Auto.
However, the equipment is still generous even on the entry-level version, since it is equipped with the automatic climate control, adaptive cruise control or the driving assistant in traffic jams. It should be noted that most of the controls are not physical, but integrated into the 10.25-inch touch screen, which also makes it possible to reduce production costs.
Let’s take this opportunity to remember that during our test of the MG 4, we noted a barely correct finish and driving aids that were almost inoperative, even dangerous at times. It’s no secret that such an affordable car can’t compete on all counts with much more expensive competitors.
With such an affordable price, a major success is to be expected for this new MG 4, which must now hold its own against its new Chinese rivals also arriving in Europe. Indeed, more and more Asian manufacturers are arriving on the Old Continent, such as Nio, BYD or even Xpeng.
According to a recent study, the invasion would be such that more than 800,000 vehicles from the Middle Kingdom could be exported to us by 2025. Enough to turn Europe from an exporting continent to a simple importer of cars, to the detriment of jobs, but also of the environment. As we know, Chinese production is much more polluting than ours at present.
A situation that raises important questions therefore, while the country could represent 25% of electric car sales in the world by 2025. Today, 20% of the latter sold here already come from China.
To follow us, we invite you to download our Android and iOS application. You can read our articles, files, and watch our latest YouTube videos.