MG Motors, owned by Chinese company SAIC Motor Corp, has announced robust UK sales exceeding £1 billion for 2022, marking significant growth driven by rising demand for its electric and hybrid vehicles.
The company reported pre-tax profits in the UK of £54.2 million in 2022, compared to £4.3 million the previous year.
This development comes at a time when China is rapidly becoming a dominant force in the electric vehicle market, largely due to state subsidies that have encouraged the production of batteries and the emergence of new Chinese car manufacturers.
Global export success
Chinese-produced vehicles, including MG cars, are increasingly being exported globally.
MG Rover, once the last UK-owned volume car manufacturer, faced bankruptcy in 2005, and SAIC, China’s largest car manufacturer, subsequently acquired much of the brand.
SAIC shifted MG vehicle production to Shanghai in 2016, ceasing manufacturing at the UK’s Longbridge plant.
The revitalization of the MG brand by its owners has positioned it as a strong contender in the growing electric car market over the next decade.
The success of MG’s latest sales in the UK can be attributed to models such as the MG ZS, MG 5, and HS PHEV. The company also revealed plans to introduce more cars in 2024.
Ian Plummer, commercial director of car selling site Auto Trader, noted that MG Motors is quietly outselling brands like Polestar and Tesla, emphasizing its competitiveness.
The MG ZS, one of the most affordable electric cars in the UK, was among the top five most popular cars last month.
China’s role as the world’s largest exporter of cars is further supported by its increasing production of electric cars, alongside heightened demand for electric vehicles.
Exports from China have surged due to robust sales in Russia, especially as many Western countries imposed sanctions on Moscow following the Ukraine invasion.
The UK also plays a role in China’s automotive trade, with China ranking among the top five export destinations for UK-built vehicles.
The industry aims to ensure equitable trade access to fast-growing Asian markets.
Although the UK government recently postponed the ban on new petrol and diesel car sales from 2030 to 2035, car manufacturers must still meet stringent quotas for electric vehicle sales, with over a fifth of vehicles sold required to be electric starting in January.