To date, MG has already managed to position one of its models as the best-selling in Europe. And they have done so by offering a very good quality product, although with its small aspects that could be improved, and, above all, by providing much more equipment than its rivals at a price without a possible competitor. The British brand – made in China – is advancing at a remarkable pace, but there is a giant that aims to devastate MG in a not too long term because they are betting on vehicles of much higher quality, with cutting-edge technology that is also under development. and own manufacturing, and adjusting their prices as much as possible.
While MG bases its catalog on thermal models, although they already have the MG 4 in their portfolio and it is one of the most interesting electric cars in Europe, the giant we are referring to only launches electric cars. And that is what makes it evident that they are looking to the future and not focusing so much on their sales today. Come on, the strategy of this brand we are talking about is long-term, while at MG they seem to have focused on already being successful, today, with what the market demands at the moment. Yes, perhaps you have already guessed it: we are referring to BYD and, indeed, there are many reasons to believe that this brand will soon devastate MG and, in addition, will also surpass the rest of the manufacturers in Europe.
BYD moves forward unstoppably
Right now MG has an excellent portfolio of models, with the MG ZS as the best-selling car. But the MG HS is also an excellent option, with a very low price compared to its rivals, which are the Hyundai Tucson, the KIA Sportage, and other models within the demanded C SUV segment. The MG EHS is even more competitive and interesting, with a slightly higher price and betting on a plug-in hybrid engine with extraordinary performance. Now, MG has made a timid commitment to electric vehicles, launching for the moment only the MG 4 to beat options such as the Volkswagen ID.3 or the Cupra Born.
For its part, BYD has decided to look further and, for now, launch only electric cars in Europe. Despite this, so far this year and compared to the previous year, BYD has already managed to increase its sales by almost 75% worldwide. Their model is not the ‘low cost’ ones like MG or Dacia, but rather they offer models with premium qualities at more reasonable prices than those of traditional brands. Of course, their strongest point is that they develop their technology and manufacture it themselves, and they manage to make components of a quality much higher than the market average. Both at the battery level and in terms of electric motors, among others.
Just a few days ago we were able to find out how much they earn for each car, and as they are increasing their sales volume globally they are also managing to increase their profit margin for each car placed on the road. That is to say, it is a brand with room to lower prices at any time and remain more competitive than its rivals. One of the key aspects of why they achieve this is that they manufacture the majority of their components. But they indeed manufacture in China, and due to transportation and tariffs, they are penalized in the European market. In China, their prices are much, much lower.
Some time ago we learned that BYD will open two factories in Europe, one of them to manufacture electric cars and the other, which seems not to arrive so soon, to manufacture batteries in the Old Continent. With this, the Asian brand will be able to deliver cars faster as demand continues to increase in Europe, in addition to reducing costs derived from logistics, transportation, and imports. And if it is now a competitive brand, having these two factories in Europe will give it a stronger position to confront traditional brands in our market. Today it is the world’s largest manufacturer of plug-in cars.