MG Malaysia: ICE or BEV? The customer will decide, CKD petrol models launching in H2 2024
Hans · Mar 30, 2024 12:31 PM
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SAIC Motor Malaysia Sdn. Bhd. (MG Motor Malaysia) will not limit its product offerings to just battery EV (BEV models).
Speaking at the launch of the fully electric MG 4 and MG ZS EV earlier this week, Steven Du, Managing Director of SAIC Motor Malaysia, said the he is very optimistic about the growth potential of BEVs, but recognized that traditional internal combustion engine (ICE) models will remain popular for many years to come.
Du added that MG will strive to deliver the right products at the right prices to meet the expectations of Malaysian customers.
MG VS, available in Thailand, is a 1.5-litre full-hybrid that goes up against the Honda HR-V Hybrid
When asked if BEVs will take a more central position than ICE in MG’s business in Malaysia, Du gave a very customer-centric, market-driven response:
“I think that question should be answered by our customers. We do have our own projections - I see this (BEV vs ICE split) as more or less 50:50, I have a very optimistic look of (battery) EVs ramping up, so I think EVs will take more (market share), but ICE is still very popular,” said Du, adding that Malaysia’s lower fuel prices will temper growth of BEVs.
“I think it is 50:50, but let’s see the market (response),” added Du.
MG 5 is a C-sedan with B-sedan price, like a Proton S70
Prior to launching the MG brand, Du has spent the last 10 years working in Malaysia, bidding his time, quietly studying and observing the dynamics of Southeast Asia’s automotive industry.
MG is not a flash-in-the-pan Chinese brand that is here simply to take advantage of tax exemptions for BEVs. Having spent the last 10 years here, observing and learning from mistakes of other Chinese marques here, MG has a long-term plan for Malaysia, including local assembly (CKD).
“I understand that to survive in Malaysia market, we have to do CKD. We have to do localization, not only CKD, then only we have a chance to lower our excise duties, then only we have a chance to compete with our competitors. So yes, we have to do CKD, but when and how, we will see. We have been waiting for 10 years, only launching these two models as our first. We will bring our ICE models in the second half of this year,” said Du.
SAIC has yet to reveal its local assembly partner for MG, but Westar Group, the authorised distributor of SAIC’s Maxus brand of commercial vehicles in Malaysia, is already doing local assembly at Berjaya Assembly’s plant in Tampoi, Johor. The Maxus G10 and V80 vans are assembled there.
The distribution of Maxus commercial vehicles will remain separate under Westar, while SAIC Motor Malaysia will only manage the MG passenger cars business.
Du at the opening of MG dealer Sing Huat Premium, at Southgate, KL
The likelihood of MG leveraging on Westar is very low, as the Tampoi plant is not equipped to handle higher volume, more sophisticated passenger cars.
Instead, we will be keeping an eye on Bermaz Auto, whose importer partner Prima Merdu’s sister-company Mega Galeri (previously importer for Peugeot) is already in the MG fold, serving as importer for MG cars.
Bermaz Auto owns a third of the Inokom manufacturing campus in Kulim. The other shareholders are Sime Darby Motors and Hyundai. Inokom is a brand-neutral contract manufacturer, and the Kulim plant still has a lot of land for further expansion.
Of course, none of these is confirmed, as SAIC will only comment on this in the second half of this year.
SAIC’s current line-up of China-made MG models in Malaysia are as below:
MG4 Standard (51.5 kWh, 170 PS, 350 km WLTP): – RM 103,999
Over 15 years of experience in automotive, from product planning, to market research, to print and digital media. Garages a 6-cylinder manual RWD but buses to work.
