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Like Michael Kors in fashion? MG Select targets ‘accessible luxury’ car buyers
Summary
The MG Select channel, positioned as ‘accessible luxury,’ aims to tap into the country's aspirational luxury buyers, currently underserved by mass market and legacy luxury brands. Think buyers over 30 years old, above the ₹30 lakh price bracket.
SAIC Motor's India joint venture JSW MG Motor India on Monday said it will launch a new sales channel brand, ‘MG Select’ which will bring hybrid, plug-in hybrid vehicles and electric vehicles (EVs), picked from SAIC's global new energy vehicle (NEV) portfolio to Indian consumers under an accessible luxury banner. The new sales channel, akin to a Nexa from Maruti Suzuki, but more high-end, will cater to a growing base of premium car buyers, particularly those over 30 years of age, looking for cars priced above ₹30-40 lakh.
MG Select will launch four products in two years, starting with the first half of 2025. The channel will introduce the first hybrids and plug-in hybrids from MG Motor in India, which already sells the ZS and the newly introduced Windsor EV in the country. The Select channel will open in 12 cities in its first phase, with new standalone experience centres put up by existing and new MG dealers.
The initiative, which will first be adopted in India, will also serve as a testbed for MG's other global markets.
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“Our mandate that we are working on internally is that this should be the way going forward, which will help the MG brand globally also to have two distinct lines, MG and MG Select," Gaurav Gupta, chief growth officer at JSW MG Motor India, told Mint.
Wide price range
MG Motor India sells models in a wide price range in India, starting with the ₹6.99 lakh MG Comet to the MG Gloster, which has variants priced well over ₹40 lakh. But for MG Motor, building a luxury ‘aura’ around its premium products meant it decided to take the separate sales channel route.
“To establish the luxury experience, and a unique, distinct aura around it, this (the sales channel) has to be separated. We evaluated shop-in-shop models, and we really felt that keeping it distinct, keeping it unique, is the way to go forward. This approach of MG Select will also actually have a very positive rub off on the main MG brand also," he said.
Gupta believes there is a gap in India’s luxury car market that the MG Select range is well-positioned to fill. Speaking to Mint, he explained, “India’s luxury car market is just 1% of the overall passenger vehicle market. But with incomes rising and consumers increasingly looking for more exclusive experiences, the market is ripe for disruption. We realized there are many brands that can be offered to the customer from the house of SAIC, which go beyond traditional powertrains too—we will offer hybrids, plug-in hybrids, and electric vehicles across different body types." The options offered to customers in the market for a luxury car in the ₹30-40 lakh and above price bracket are “limited" and largely addressed only by “legacy" luxury brands.
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“Therefore, the market is so wide open above that that it actually can be called in many ways a mix of a blue ocean strategy also. There is a lot of talk about the experience people have with luxury brands, but the fear of cost of ownership and other constraints comes into play. There's an opportunity to address all of this and bring more customers into the accessible luxury space," Gupta said.
Space for culture
He adds these won't be typical four-car showrooms. From the get-go, the brand imagines MG Select to become cultural spaces, with collaboration across lifestyle and sustainability brands.
“Some new emerging brands like IM could also be tapped for the Select channel," Gupta said. IM is a premium EV brand by SAIC, the Chinese automobile multinational which owns the MG Motor brand.
Gupta likened the MG Select concept to fashion brand Michael Kors, which offers luxury goods at a relatively accessible price point. “For example, take how Michael Kors positions itself in the market—it's a high-end brand but still accessible compared to other luxury labels like Chanel. That's the approach we want to take with our products," he said.
"We're not just focusing on the price point; we're also enhancing the overall experience. For instance, we launched the Windsor EV at ₹9.9 lakh plus battery rental, which demonstrates our commitment to offering value. Similarly, we’ll offer various packages for our luxury cars to make them more accessible while delivering a unique customer experience," he added.
Fresh salvo from JSW-MG alliance
The launch of MG Select is the second major initiative from MG Motor India after its alliance with JSW reinvigorated it with fresh capital and a new strategy.
Also Read: Made-in-India parts to fuel JSW-MG Motor alliance's India drive
The hybrid and plug-in hybrid models within the MG Select range will be sourced from MG’s parent company, SAIC’s global portfolio, and assembled locally in India. This approach allows MG to bring international models to the Indian market at competitive prices, while also catering to its growing preference for locally manufactured vehicles. Gupta mentioned that two models from the Select range are slated for release by mid-2025, with plans for four launches over the next two years.
One of MG Motor’s key goals with the Select range is to target India’s affluent but price-conscious consumers. The luxury car market in India has traditionally been dominated by established European and Japanese brands. However, MG sees an opportunity to introduce a new range of high-quality, feature-rich vehicles that are tailored for buyers in their 30s, whose disposable income makes them prime candidates for premium products but who might not yet be prepared to invest in the ultra-luxury segment.
