Breaking News MG4 Prices Slashed!

[BarryH]

New car and even used car prices have been rising ridiculously these past couple of years and chip shortages etc and stalled production have filed the fire.
MG has seemed to be a disrupter in all this along with Tesla bringing to the European market including UK boatloads of shiny new EVs (although I'm yet to see my MG4 I paid reserve on in August, but, I'm getting ahead of myself).

But, according to the well-researched EV and EV Market analyst "The Electric Viking," MG is about to really shake up the legacy automakers as the entry-level price of the MG4 has been slashed to UNDER €20,000 which I make to be under £16,500! So what will that do for my Trophy reservation I wonder and what of the policy of MG to fix and hold the price on deposit-paid orders?

To watch the Electric Viking's commentary on the price drop use this link

 

[bear1]

In short, I think the figures are wrong.

 

[Kithmo]

What happens in Europe stays in Europe, I doubt it will happen here in treasure island.

 

[Wakefield5]

Until we hit a proper recession and there’s hundreds of cars already built and sitting without buyers then I can’t see prices falling.

 

[jamesie]

How reliable is the Electric Viking?

Clickbait?

 

[mg4trophy]

This guy just talks to the camera he holds no official figures or data on this

 

[Ian Key]

You have to take a finance package from Santander together with a subsidised scrap value for your current car of 7000 euro and a campaign discount from MG for 1210 euro to get the SE SR for 19280 euros.
More details here

 

[BarryH]

Until we hit a proper recession and there’s hundreds of cars already built and sitting without buyers then I can’t see prices falling.

I disagree, that is a too simplistic approach. Remember there are probably only two volume carmakers in the world who are actually making money on EVs which is why legacy automakers have such a stop-start approach to EV sales when they lose money on every car that they sell. In China which is the faster-growing car market, there are dozens of EV makers all fighting for market share and this is spilling over into ROW as car prices outside China are higher if they can export into a higher price market there is financial support to expand their market share in their home market. So clearly one strategy to become profitable is to drop prices and win market share thereby displacing the competition. And if 50% of your company is owned by someone with deep pockets and lots of cash ie. like the Chinese government and the other 50% is a global carmaker who makes 50% of their profits in the Chinese market, then I can see why it would make a great deal of sense to ramp up production and sales of a successful 'C' Segment EV which you have received great reviews and dominate the car markets in the half of the world you have launched the MG4. With significantly higher volumes of a modular platform then SAIC can control the market and the future price and future profitability.

 

[Shengis]

You have to take a finance package from Santander together with a subsidised scrap value for your current car of 7000 euro and a campaign discount from MG for 1210 euro to get the SE SR for 19280 euros.
More details here

Can this be done in the UK or is this Euro only? Just noticed the scrap thing, wtf? ?

 

[memo]

You have to take a finance package from Santander together with a subsidised scrap value for your current car of 7000 euro and a campaign discount from MG for 1210 euro to get the SE SR for 19280 euros.
More details here

Here in Spain, yes I believe that is partly true. And some dealers are advertising it that way with a very tiny light grey asterisk next to the price.

As stated it is on condition you take a finance package and "can get" the government subsidy. But the figures are not quite right as I believe the mg4 1210 euro promotion is not available with the finance package as the minimum amount to be financed is 20,000 euro.

Also note the finance package is advertised as a 2000 euro discount but if you read the very small greyed out small print you will notice that the true interest rate is over 13%. And therefore you pay over 6000 in interest.

Also all of the grant is not conditional on you scrapping a car. 4500 euro is a straight subsidy for buying s new EV. There is also a separate grant of 2500 euro for scrapping a more than 7 year old ice car and what a lot of people don't realise a further 500 euro straight grant if you live in a small village like I do of less than 5000 habitants. These subsidies you have to pay the dealer up front and the government will give you back in MAYBE 1.5 years time.

 

[BrenEV]

New car and even used car prices have been rising ridiculously these past couple of years and chip shortages etc and stalled production have filed the fire.
MG has seemed to be a disrupter in all this along with Tesla bringing to the European market including UK boatloads of shiny new EVs (although I'm yet to see my MG4 I paid reserve on in August, but, I'm getting ahead of myself).

But, according to the well-researched EV and EV Market analyst "The Electric Viking," MG is about to really shake up the legacy automakers as the entry-level price of the MG4 has been slashed to UNDER €20,000 which I make to be under £16,500! So what will that do for my Trophy reservation I wonder and what of the policy of MG to fix and hold the price on deposit-paid orders?

To watch the Electric Viking's commentary on the price drop use this link

Seems like nonsense to me unfortunately.

Why would MG significantly reduce the price of their vehicles when they are selling like hotcakes and there is no supply ?

 

[AdamMGEV]

There's no way MG will sell the MG4 for that price

 

[siteguru]

Electric Viking is known for quantity over quality ... he has some good articles but he tries to push out too much content.

 

[BarryH]

Seems like nonsense to me unfortunately.

Why would MG significantly reduce the price of their vehicles when they are selling like hotcakes and there is no supply ?

A similar reason to Tesla I guess. Control of the market by driving competitors into bankruptcy. Tesla can sell every car it can make and yet they are heavily discounting in certain markets for market position.

 

[BrenEV]

A similar reason to Tesla I guess. Control of the market by driving competitors into bankruptcy. Tesla can sell every car it can make and yet they are heavily discounting in certain markets for market position.

Slashing your own prices doesn’t help you control the market when you have limited supply. That only works if you have stock to be able to take share from your competitors.

It makes no sense.

 

[tsedge]

This story is nonsense. If anything, the price is going to increase.

 

[memo]

This story is nonsense. If anything, the price is going to increase.

Exactly, he probably is saying this because he has seen a few Spanish MG dealers websites, like this one. This one hasn't even bothered with the tiny greyed out star to draw, ho humm! your attention to the, again tiny greyed out real cost and conditions, as mentioned in my post #10

 

[Wakefield5]

I disagree, that is a too simplistic approach. Remember there are probably only two volume carmakers in the world who are actually making money on EVs which is why legacy automakers have such a stop-start approach to EV sales when they lose money on every car that they sell. In China which is the faster-growing car market, there are dozens of EV makers all fighting for market share and this is spilling over into ROW as car prices outside China are higher if they can export into a higher price market there is financial support to expand their market share in their home market. So clearly one strategy to become profitable is to drop prices and win market share thereby displacing the competition. And if 50% of your company is owned by someone with deep pockets and lots of cash ie. like the Chinese government and the other 50% is a global carmaker who makes 50% of their profits in the Chinese market, then I can see why it would make a great deal of sense to ramp up production and sales of a successful 'C' Segment EV which you have received great reviews and dominate the car markets in the half of the world you have launched the MG4. With significantly higher volumes of a modular platform then SAIC can control the market and the future price and future profitability.

So despite already having the cheapest model in class and pretty much selling everything they can make, they’re going to drop the price in an environment where inflation is running at circa 10% per year. I don’t see it.

But I’ve only been working as an economist for the last 15 years and am constantly surprised by how many governments and businesses behave ?

Edit: I just ordered an MG4 yesterday so I’m more than happy to be proved wrong again if I can save a couple of grand!

 

[BugEyed]

Looking at the UK end of the operation I'd suggest that there's plenty of room for efficiency savings and hence either greater profit or further savings to the customer. There are already some dealers offering small discounts.
But the issue in the UK is the obscene levels of subsidies available to company car drivers on a regressive basis - you get more subsidy for a more expensive car and if you pay higher tax rates. A limited and targeted system such as the Spanish one is better value.

 

[BarryH]

Exactly, he probably is saying this because he has seen a few Spanish MG dealers websites, like this one. This one hasn't even bothered with the tiny greyed out star to draw, ho humm! your attention to the, again tiny greyed out real cost and conditions, as mentioned in my post #10

Probably true in principle that the source is form one country in Europe but not the screen shot which showed 20,380 Euro because in the video he quotes 19,300 Euro although he doesn't say if that is with promotions.