Rajeev Chaba: ‘We expect 60% of our sales to be EVs by this year end’

Rajeev Chaba: ‘We expect 60% of our sales to be EVs by this year end’

  • 24.03.2025 11:03
  • financialexpress.com
  • Keywords: dangerous, dangerous

MG Motor India's EV market share has surged from 20% in 2019 to 41%, driven by innovation and customer focus. Rajeev Chaba aims for 60% of sales to be EVs by 2025, with plans to expand production and launch new models.

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Estimated market influence

MG

MG

Positivesentiment_satisfied
Analyst rating: Buy

MG has seen a significant increase in its EV market share from 20% to 41%. They aim for 60% of their sales to be EVs by the end of this year and are expanding plant capacity.

Tesla

Tesla

Negativesentiment_dissatisfied
Analyst rating: Neutral

Rajeev Chaba predicts that Tesla's entry into India will have a niche market, with limited impact on MG's current position. He expects Tesla to target a higher price segment which is not as mainstream in India.

Context

Business Insights and Market Implications Analysis

Market Share Growth

  • MG's EV market share has surged from 20% in 2019 to 41% currently, driven by a focus on cutting-edge technology and customer-centricity.

Sales Targets

  • MG aims for 60% of its sales to be EVs by the end of 2025.
  • The company is expanding plant capacity to 300,000 units, with 60–70% dedicated to NEVs (Electric Vehicles and hybrids).

Competitive Landscape

  • Competition in the EV space is expected to grow the ecosystem rather than pose a significant threat.
  • MG sees itself as a leader in the EV segment, with products like the ZS EV and Comet driving growth.

Tesla's Entry into India

  • Tesla’s entry into India is seen as a positive development that will spark more EV discussions.
  • However, Tesla’s cheapest model (currently priced at $35,000) is expected to be niche in India, targeting a market of about 70,000 units.

Policy Incentives

  • Stable long-term policies are critical for accelerating EV adoption, with the current EV market share at 2.5% and potential growth to 15–20%.
  • MG advocates for incentives that differentiate hybrid technologies, particularly plug-in hybrids capable of operating in full EV mode for at least 100 km.

Hybrid Strategy

  • Plug-in hybrids are seen as a bridge technology, with the potential to cover 80–90% of urban driving on electricity.
  • MG plans to launch a plug-in hybrid next year, contingent on government recognition of their value.

Pre-Booking Numbers

  • Pre-booking numbers for the M9 EV and Cyberster EV are three times expectations, indicating strong consumer interest.

New Launches

  • MG is targeting an April-June 2025 launch for its next set of EVs, including a plug-in hybrid model.
  • The company’s strategy includes localized production to leverage India’s growing EV ecosystem.