MG is becoming a real player in the electric car market in Europe. But there are some new, unforeseen, challenges ahead.
I remember seeing the MG TF on the road when I was a teenager and thinking that was a really cool car. At the time I didn’t know how rich the history of the brand was, I just liked the TF, but the truth is MG is, all things considered, over a century old.
Founded by Cecil Kimber in 1920, MG lived a tumultuous life for almost 100 years, with many different owners that included British Leyland, British Aerospace, BMW (yes, really!) and, eventually, the Rover Group. The British conglomerate went into receivership and car production at the MG factory was halted on April 7, 2005.
The rights to the MG brand were then sold to the Chinese Nanjing Automobile Group which, in turn, was bought by SAIC Motor in 2007. It wasn’t until 2011 that a new MG was launched and the return to all European markets is underway with a catalogue of cars that major on excellent value for money.
I have been following the rise of the new MG with interest and finally decided it was time to drive one. The most relevant model in Portugal is the MG4 EV, a 100% electric hatchback with a price tag to shame all others. But there is much more to the 4 than just how much it costs.
The Chinese government has been pouring billions into the national automotive industry because, for the first time ever, Chinese cars can compete with the legacy constructors. It is much easier to build a vehicle with an electric propulsion system and an empty cabin featuring a big screen than one with a metal block where explosions take place and an interior made out of quality materials with buttons.
It is undeniable an electric car cannot elicit the same emotions a combustion one can. There is no fire (literally), no noise, no nothing. It’s a much more efficient machine, no doubt about that, but it’s a soulless one. I hear you saying: what about a Porsche Taycan? A Porsche sports car is certainly exciting, even if it’s silent. Well, would you rather have that or a 911? Exactly. I rest my case.
That means – at least in my view – that the purchase of an electric car should be a more rational decision. How much does it cost? How much will it save in fuel over a year? Can I park it on city centres for free? Will it hold any value come resale time?
The MG4 I recently drove may just be the best electric car in the world then. It’s certainly cheaper than all its rivals at a starting price of just over €28.000 for the entry-level version. The extended-range I tested (€43.000) has a 520km of range and 245 horse-power. Being rear-wheel drive there is even some fun to be had. Some, not much.
Mostly, it feels absolutely normal to drive. And when I say normal, I mean European. And when I mean European I mean a quality product. No rattle noises, no weird dynamic glitches, plenty of performance and all (or more) gadgets than the competition. A no-brainer really.
At the end of April, MG reached 2000 units sold in Portugal. The 4 is the biggest seller. And why wouldn’t it be? I am not in love with it, just as I am not in love with any car without an engine but why would you buy anything more expensive than this if the MG4 EV does everything as well or better than what we build over here? For a lower price.
There must be a catch, right? Well, yes, there is. Although one that is not exactly MG’s fault. The EU is implementing a special import tariff on Chinese cars that can go up to 37%. The Chinese government, in return, is increasing the price of the components it sells to European automakers. Just what the sense of the whole thing really is nobody really knows.
In 2017 Europeans bought 17.000 Chinese electric cars. Last year we bought 437.000. The EU accuses the Chinese government of creating an unfair market reality through infinite subsidies, which allow Chinese cars to be sold at lower prices. Really? What about the textiles in the 1990’s and tech products in the 2000’s? They have been doing it forever – why all this hypocrisy now?
Well, because cars are something we were proud to be the best in. It was a hallmark of Europe. But mainly, obviously, because it is a very big industry with very powerful unions thar can influence the political vote. And that’s really what’s going on.
Because SAIC Motor refused to answer the EU’s investigation questions regarding its operations, it got the aforementioned 37% tax increase. Add to that the previously established 10% for all Chinese cars and an MG will pay almost 50% more taxes than a European car.
Unsurprisingly, most European constructors are against this measure and say the benefits will surely not overcome the problems it creates. In the meantime, consumers pay more for everything, thank you very much.
Still. The MG4 EV. Good car. Great price. Tough market conditions. Let’s see how all of this plays out.
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