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I. Dilemma of The Case/Abstract

1) MG Motors India was facing challenges in establishing itself in the downturn Indian auto market which was dominated by the top two players, Maruti Suzuki and Hyundai, with 70% combined market share. 2) MG Motors India's President, Rajeev Chaba, planned to launch the MG Hector SUV with new features like built-in internet connectivity to make it disruptive. He also planned to launch 3 more products by the end of 2020. 3) Chaba believed India remained a promising long term market and that MG Motors could succeed by focusing on quality, reliability, cost of ownership and expanding its dealer network. However, challenges around establishing the brand and boosting sales in the

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0% found this document useful (0 votes)
91 views11 pages

I. Dilemma of The Case/Abstract

1) MG Motors India was facing challenges in establishing itself in the downturn Indian auto market which was dominated by the top two players, Maruti Suzuki and Hyundai, with 70% combined market share. 2) MG Motors India's President, Rajeev Chaba, planned to launch the MG Hector SUV with new features like built-in internet connectivity to make it disruptive. He also planned to launch 3 more products by the end of 2020. 3) Chaba believed India remained a promising long term market and that MG Motors could succeed by focusing on quality, reliability, cost of ownership and expanding its dealer network. However, challenges around establishing the brand and boosting sales in the

Uploaded by

Anindya Basu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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I.

DILEMMA OF THE CASE/ABSTRACT

Mr. Rajeev Chaba, President and Managing Director of MG Motors India Pvt. Ltd. knew that
in India, the top two players in the auto market took up around 70% of the shares 1.
Moreover, the foreign players had a minimal of 1-2% market share 2.Auto MNCs had
struggled to break the stranglehold of Maruti Suzuki and Hyundai in India, price being an
important barrier. The auto industry had gone into a slump in the year 2017-2018 and with
stringent government policies in place regarding tax and engine specifications, it did not
seem the right time for the launch of a new vehicle in the passenger vehicles segment. India
was majorly a cost competitive market. The companies which offered feature rich product
with value for money proposition along with wide sales and service network, have
triumphed. Various challenges lied ahead for MG Motors to establish itself not only as a
brand but also to boost its sales in a downturn market.

II. INTRODUCTION

(A) MG MOTOR HISTORY

MG was founded by Cecil Kimber who was a sales manager at Morris Garages, Oxford - the
sales and service unit of Morris Motors. Morris Garages was one of many companies operated
by William Morris, who owned Morris Motors. Cecil Kimber started modifying Morris cars
into sportier versions and selling them. Popularity led to higher demands exceeding the
supply and a separate brand was formed in 1924 called MG. By 1928, the demand for MGs
was so high that they had to shift out of Oxford, where they were making the cars alongside
Morris cars, to a dedicated factory. An old leather factory in Abingdon was chosen and the
MG Car Company was established.

The British automobile industry has had a very tumultuous past and as such a lot of brands
were failing and/or being sold. Lot of these brands had consolidated among themselves. As a
result, MG, had changed a lot of hands since it was established. It was initially owned by
William Morris himself then sold to Morris Motors. In the 1950's Morris Motors merged with
Austin Motors to form the British Motor Company (BMC) of which, even Jaguar was a part
of in the 60s. BMC then became British Leyland after BMC and Leyland merged. Leyland
owned Rover and Triumph (MG's biggest rival). The 1980s saw the downfall of the British
automobile industry. The MG plant was shut down in 1980. In 1982, British Leyland's
subsidiary - Austin Rover revived the MG brand for a short while only to be sold to BMW in
1994. BMW then sold it to the MG Rover group, which collapsed in 2005. Following the
collapse, the MG brand was acquired by Nanjing Automobile of China. In 2007, Nanjing
itself was acquired by SAIC Motor of Shanghai, which owns it today.

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crosses-a-million-mark/67549073
2
https://www.financialexpress.com/auto/car-news/top-10-carmakers-in-india-and-their-market-share-maruti-
suzuki-owns-half-of-the-indian-market/1129193/
(B) MG MOTOR AS A BRAND

British owned automotive company MG Motors had changed their ownership quite a few
times and currently it rested with China based SAIC. The original name had been retained
since it was a company that had been built as early as 1922 and had since built a history. Just
the name could not be sufficient. The company required to improve its design and technology
along with innovation in order to sustain itself in the current market.
With the advent of the MG series, an effective brand strategy was required. Product
positioning would go on to play a major role in how the customer would perceive the product.
Initially positioned as a sports car, MG Motors achieved a fine balance between performance
and affordability. The company had a rich legacy and it was needed to be preserved.
The company strategy revolved around a clear brand positioning with worldwide coverage.
The European market widely accepted the entry of MG Motors, which succeeded. Customer
satisfaction and optimization of sales and profit was the main point of focus. Their slogan”
The World’s most enjoyable car to drive” helped strike at the heart of their customer base.
The company had focussed on a global scale which helped them gain popularity under a short
span of time despite of undergoing so many ownership changes.

(C) MARKET LEADERS IN AUTOMOBILE INDUSTRY IN INDIA

The automobile sector had witnessed its lowest quarterly performance across all segments.
The lowest monthly sales was observed in fiscal year 2019 3. A growth of 9.6 percent was
observed till February, 2019. Year 2018 had closed with a growth rate of 13 percent in the
two-wheeler segment, CV segment, and the performance of the PV in the first half or first two
quarters4. In addition to that, year-end discounts helped with recovery despite of an overall
deterioration in December 2018, said Sridhar V, Partner, Grant Thornton India LLP.5

However, only a few carmakers were affected, while the rest had shown positive growth. The
top four market leaders namely, Maruti Suzuki, Hyundai India, Mahindra and Mahindra, and
Tata Motors accounted for over 82 percent of the Indian passenger market 6.
Tata Motors which previously had a market share of 5.9 percent, was the top achiever with a
24.13 percent growth in the calendar year of 2018, with a market share of 7 percent 7. The
success of Nexon and Tiago was a major contributor.
Maruti Suzuki, the largest PV manufacturer registered 8.05 percent growth rate, with 51
percent market share8. Ford registered 10.91 percent growth while Toyota followed closely at
8.54 percent9.
(D) RAJEEV CHABA’S INITIAL PLANS
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https://www.financialexpress.com/auto/car-news/top-10-carmakers-in-india-and-their-market-share-maruti-
suzuki-owns-half-of-the-indian-market/1129193/
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Mr. Rajeev Chaba, President and Managing Director of MG Motors India Pvt. Ltd. was clear
that MG Motors, had to be unique and meaningfully disruptive in many areas. Their product
had new features, like being an internet car, the first of its kind in the Indian market. Such a
car is equipped with Internet access, and usually also with is wireless local area network
(LAN). This allows the car to share internet access, and hence data, with other devices both
inside and outside the vehicle. The base model had been loaded with safety, rear seat
convenience, affordability and other segment-first features 10.
In an interview, Mr Chaba mentioned that they have a capacity of 80,000 units per year with
the Hector being just a part of it. He further mentioned that the company would finalise all
four product launches by end of December, 202011. He was positive that although the Hector’s
segment, was not a big segment and the company was not considering big volumes at the
moment, the returns would be fair.
But was the time to launch the Hector, appropriate; given the auto sector undergoing a
slowdown? Mr Chaba, believed the best way was to look at the overall perspective for a long
term potential. In an interview, he opined that since Indian economy was consumption-led, a
6-8 per cent of GDP growth irrespective of externalities was likely. A strong consumer base
and middle income groups were changing their habits. The tier-3 and tier-4 consumers would
buy more cars, as compared to the tier-1, where the ownership headed down 12.
However, he was positive that the overall number remained good with the forecasts predicting
that India would be the third largest market in the next four to five 13.

(E) MG INDIA'S RAJEEV CHABA ON STRATEGY OF MG MOTOR

As per Mr. Rajeev Chaba, President and Managing Director of MG Motors India Pvt. Ltd. ,
after the initial bookings had been carried out followed by the deliveries, the company had
focused on providing product assurance to its customers and potential customers in terms of
quality, reliability, cost of ownership, spare parts, workshops, and resale price. Preparation
and execution had been the key to maintain reasonable expectations 14.
The company’s strategy was to launch more products. They expanded the dealer network and
maintained dealer viability. The company targeted at launching three more products by the
end of 202015].
India was in the nascent stages of harbouring an electric car. There was no proper
infrastructure.
However, instead of waiting for better government policies, infrastructure and consumer
acceptance to be in place, MG Motors had become a pioneer in this field. The company
created a segment in order to help their brand display its technology. MG Motors had world
class electric vehicles in their portfolio supported by battery technology. The company

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chaba/article27141201.ece
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chaba/article27141201.ece
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https://economictimes.indiatimes.com/industry/auto/auto-news/mg-motors-focusing-on-building-its-brand-
not-volumes-for-now-rajeev-chaba-managing-director/articleshow/69590291.cms
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https://economictimes.indiatimes.com/industry/auto/auto-news/mg-motors-focusing-on-building-its-brand-
not-volumes-for-now-rajeev-chaba-managing-director/articleshow/69590291.cms
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https://economictimes.indiatimes.com/articleshow/70413588.cms?
utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
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utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
worked hard with infrastructure development and with the government to improve their
market strategy16.
The company not only focused on the product and initial ownership, but also narrowed down
on cost of ownership, cost of spares, workshop experience, and eventually resale value. The
strategy was built on three pillars: good employees, culture, and dealer viability. In an
interview to Economic Times, Mr. Rajeev Chaba mentioned that they would have only one
dealer per city, barring NCR and Mumbai. The company mantra with dealers is: your
profitability is our responsibility and you take care of customers. He projected his 10 year
plan for the company in three phases: The first 3-4 years would lay down the foundation
where MG would focus on building their brand and presence. They would focus on improving
localisation. The second phase involved that for the next 3-4 years, elements such as products
and cost efficiencies would be under the scanner. The final phase would include
accomplishing production of high volumes17.

III. MG HECTOR

(A) HECTOR AS A PRODUCT

MG Motor had announced the name of its upcoming SUV as Hector, which would be its first
product in the Indian market. The MG Hector will be a compact SUV which will rival
against the likes of the Hyundai Creta, KIA SP Concept, Jeep Compass and a wide range of
SUVs both in the compact and mid-size SUV segment.
The compact SUV segment had always been one the most lucrative segments. The Hector
was the first model in MG Motor’s line-up in India. The car was manufactured
locally at MG Motor's Halol facility in Gujarat and the company had planned to launch it in
India by mid-2019. The MG Hector was likely to boast of over 70 per cent of localisation
and the prices are expected to start at ₹ 16 lakh which would entitle it to compete with a
wide range of SUVs in the Indian market18.
The new MG Hector was a five-seater compact SUV. Based on its given specifications it
could compete with rivals from both the compact segment but also from the entry-level mid-
size SUV segment. The segment leader Hyundai Creta is one of its chief rivals but it will also
battle with the likes of the Nissan Kicks, Jeep Compass, Tata Harrier, Mahindra XUV500
and even with the Hyundai Tucson. The Hector would also face competition from yet another
newbie, the Kia SP concept which was all set to hit the Indian market by November, 2019. 
The MG Hector got both petrol and diesel variants which had BS 6 ready powertrains. The
petrol would be a 1.5-litre, 4 cylinder, turbo-petrol unit and the diesel was a 2-litre, four-
cylinder diesel motor. This enabled, the MG Hector to have an edge over the Tata Harrier
which was launched only with a diesel motor19.
The MG Hector was not a small SUV, with a length of 4655 mm, a width of 1835 mm and a
height of 1760 mm. The Hector was larger in dimensions than the upcoming Tata Harrier
which in-turn was longer and wider than all other SUVs in the segment 20.

(B) BENEDICT CUMBERBATCH AS BRAND AMBASSADOR


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http://overdrive.in/news-cars-auto/interview-mg-indias-rajeev-chaba-on-strategy-new-products-and-bsvi/
18
https://auto.ndtv.com/news/mg-hector-top-five-things-you-need-to-know-1976327
19
https://auto.ndtv.com/news/mg-hector-top-five-things-you-need-to-know-1976327
20
https://www.outlookindia.com/website/story/automobiles-mg-hector-10-things-you-should-know/323698
Pallavi Singh, head – marketing, MG Motor India, felt that although MG Motor was an
iconic British brand, they were relatively unknown in India. As such they would require to
select a brand ambassador who would fit well with their brand narrative as well as one who is
well recognised and revered. It was important to spell out to the audience that the brand is a
premium car maker. Pallavi had stated in an interview that the main focus was not limited to
age groups but rather to the minds, attitudes and psychographics of the target audience 21.
She further went on to say that Benedict Cumberbatch’s versatility as an actor matched to
with MG’s "commitment towards differentiation. Company research had revealed that Indian
followers comprised of the highest share of the UK Stars global fan base *
His social and philanthropic work, as well as his support for inclusivity beyond gender was
also was in sync with MG’s core brand ideology of nurturing diversity.
Benedict Cumberbatch had a strong resonance among pop culture and youth. The association
further underlined MG’s unique British heritage and its focus on enabling the future with the
core pillars of innovation, diversity and technology22.
Micromax had got Hugh Jackman on board to come out of the Indian-Chinese idea and in
order to create a more global image. MG Motors probably aimed to do the same with Mr.
Cumberbatch. MG looked to focus on a very niche target market in India. Often brands used
international faces to build an idea of premium-ness around them and to appeal to urban
clusters. It was used to target the premium, niche sort of audiences.

IV. COMPETITION/RIVALS

(A) COMPETITORS

Exterior Features: Hector vs Rivals


In the SUV segment in similar price range, MG Hector had a size advantage over most of its
rivals. For the general Indian mentality, this was a good deal. With respect to the exterior
features, Hector with its split headlamp setup, LED DRLs on the top and the main headlights
lower down was similar in configuration to the Tata Harrier. The front fog lamps and DRLs
were standard features on such high end versions of SUV models, however only half the cars
in the list below (see exhibit no. 1) had LED headlamps. The Hector and Kicks were equipped
with projectors, while the Seltos and the Captur were equipped with full LED units 23.
One aesthetic drawback feature of the Hector was the 17” allow wheels which looked too
small for such a large SUV. While this was the standard wheel dimensions for most SUVs,
the Compass and the XUV500 grabbed top spot with 18” rims24.
The common setup for SUVs included staples, push-button start, keyless entry, cruise control,
automatic headlamps, single-zone control, and automatic wipers (except the Creta). The
Hector and the Seltos were equipped with advanced features such as geo-fencing, remote
functions and vehicle tracking. Features such as electric parking brake, panoramic sunroof,
tyre pressure monitoring and ambient lighting were also included on the Hector along with a
few of its competitors. However, Hector scored a point for having heated wing mirrors and a
powered tailgate25.

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pallavi-singh-mg-motor-india/articleshow/65504842.cms
22
https://www.exchange4media.com/marketing-news/morris-garages-india-ropes-in-benedict-cumberbatch-
as-brand-ambassador-95485.html
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https://www.news18.com/news/auto/mg-hector-test-drive-review-excess-of-goodness-2186011.html
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https://www.news18.com/news/auto/mg-hector-test-drive-review-excess-of-goodness-2186011.html
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https://www.news18.com/news/auto/mg-hector-test-drive-review-excess-of-goodness-2186011.html
On the downside, the SUV missed out on the head-up display, which was present in Seltos,
part digital instrument cluster, which Harrier had, and dual-zone climate control, which was
included in Compass. Other features which were not present in the Hector included the option
of all wheel drive, terrain modes, and drives modes.
MG Hector Vs KIA Seltos: Petrol Engines
The Kia Seltos offered multiple variants of engine-gearbox options. There were three engines
– a 115hp 1.5-litre petrol, a 115hp 1.5-litre diesel and a 140hp 1.4-litre turbo-petrol. Each
engine could be had with a 6-speed manual gearbox, or with an automatic – a CVT for the 1.5
petrol, a 6-speed torque convertor for the diesel and a 7-speed dual-clutch transmission for the
1.4 turbo-petrol 26(See exhibit-3).
By comparison, MG offered fewer engine-gearbox options on the Hector. There was a 143hp
1.5-litre turbo-petrol (which could also be had in 48V mild-hybrid form) and an FCA-sourced
170hp 2.0-litre diesel, but gearbox options were limited. While a 6-speed manual was on offer
for each version, only the standard 1.5 petrol could be had with the 6-speed dual-clutch
automatic – the 48V mild-hybrid and diesel are manual-only 27. The absence of the coveted
diesel-automatic combo could limit popularity in the MG.
MG Hector Vs KIA Seltos: Diesel Engines
When it comes to the diesel variant, the Hector was more powerful with a 170HP, 350 Nm
torque engine. One of the major drawbacks for MG Hector was that it was currently BS4-
emission norm compliant whereas the KIA Seltos was a BS6- emission norm compliant at
launch.

(B) MG MOTOR’S STRATEGIC TIE-UP WITH MYLES AND OTHER


INITITIAVES

On January 24, 2019, MG Motor India announced their strategic tie-up with Myles, the car
sharing and car Subscription Company from Carzonrent. The implications of this strategic
alliance was multi fold. The partnership provided next generation mobility solutions to the
customers. The value in the first phase of the tie-up was estimated at Rs. 250 crores. This
enabled the introduction of MG cars with a disruptive car ownership solutions in partnership
with Myles28.
President and MD of MG Motor India Private Ltd. stated that the tie-up helped cater to the
dynamic requirements of the new age customers. The customers had experienced the MG
Hector on a subscription basis. Test drives could be booked alongside experiencing other car
benefits. Mr. Chaba had also stated on extending the Myles subscription model for their next
EV product.
The strategic alliance benefitted MG Hector as they made use of the existing network of
Myles available across 21 cities appending to MG Motor’s own network spread over 110
sales and service touchpoints.
Myles, the largest B2B mobility solutions provider helped the customers of MG experience
HECTOR. The strategic alliance with Myles was a part of the MG Drives Innovation
initiative. The initiative also include several programs which identified, encouraged and
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https://www.news18.com/news/auto/mg-hector-test-drive-review-excess-of-goodness-2186011.html
28
https://economictimes.indiatimes.com/industry/auto/mg-motor-india-ties-up-with-car-sharing-firm-
myles/articleshow/67669743.cms
https://economictimes.indiatimes.com/industry/auto/mg-motor-india-ties-up-with-car-sharing-firm-
myles/articleshow/67669743.cms
recognised various start-ups in the automotive space. Such tie-ups helped with brand
recognition. MG Motor ran an ‘Auto-Tech Innovation Hunt’ in partnership with TiE and
published a white paper on Connected Mobility at their recently concluded Global Summit.
The carmaker has also partnered with IIT Delhi to develop technology that will ensure child
safety and conducted a hackathon at the institute recently 29.

(C) INNOVATION COMPETITION TO IMPROVE VISIBILITY

The ‘MG Innovation Challenge’ was a further extension of the ‘MG Drives Innovation’
program, which had been launched in partnership with TiE, Delhi NCR, on December 2017.
As part of its commitment to community development around where its manufacturing
facility is located, MG had also sponsored the MG Vadodara Marathon earlier in 2018 30.

The day-long MG Innovation Challenge (Hackathon) would cater to over 150 students
encouraged to come up with creative and innovative solutions for green mobility and safe
transportation. MG Motor chose Navrachna University as the ideal location for the event
based on the proximity to the Halol plant31.

Mr. Rajeev Chaba announced that through this innovation program, MG Motors would
reinforce their commitment to innovation. The challenge focused on getting solutions
in the automotive space especially in the areas of green mobility and safe transportation. It
would also enable to nurture future talent in the automotive space, as Gujarat steps up as one
of the biggest automotive hubs in India32.

V. POTENTIAL PROBLEMS AHEAD

The major problem ahead lies in obtaining market share. The passenger vehicle industry in
India is dominated close to 70% by Maruti Suzuki and Hyundai. Further, when Tata Motors,
Toyota and Honda are added, the market share is close to 93%. Customer behaviour among
Indian consumers displayed that they were highly selective. For Car manufacturers, the
return on investment and viability came from volumes in the small car segment. Rural
penetration and products which were more mainstream and could perform under challenging
circumstances would be preferred. Established players who had sustained success in this area
were Maruti and Hyundai.
Factors such as an extensive dealer network, and spare parts availability would be among
other hurdles. Trained man power who would follow the company SOPs would be another
requirement. Further, avenues such as supply chain, technical support and operations would
have to be in place for any company to flourish. It had taken Maruti Suzuki around 25 years
to cover a business of around 6000 crores of annual spare parts across its dealerships and
MGP outlets. General Motors had gained entry to Indian market before Hyundai, Honda and
Toyota, yet it could not sustain33. Did MG Motors have time, the right vision and the right
strategy to be successful?
Brand Acceptance was another major challenge for the company. Although of British
29
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%20Motor%20India%20announces%20strategic%20tie-up%20with%20Myles.pdf
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https://www.indiacarnews.com/news/mg-innovation-challenge-26563/
31
http://www.autosarena.com/mg-motor-india-to-conduct-innovation-challenge-at-navrachna-university/
32
https://www.evoindia.com/news/mg-motor-india-hackathon
33
https://motoruncle.com/forum/ForumDetails/Why-it-wont-be-a-Cakewalk-for-MG-Motor-at-India-
heritage, the current ownership lied in the hands of the Chinese. Initially, the Chinese
antecedents might haunt the brand. “Chinese” as a tag was what “Korean” was over a decade
ago34. Daewoo had undergone the same pain point; even Hyundai faced similar problems
from Maruti dealer personnel in case of competition bashing.
Initial competition narrative could occur against MG Motors. Competitive dealership may
bank on the product’s Chinese ownership, indicating that it would be flashy and uncertain in
terms of quality. Even Hyundai Venue had the Blue Link tech at lower prices. Hector would
have only certain additional features like OTA updates and that it would not be worth taking
the risk for security reasons (hacking attack by hackers).

VI. CONCLUSION

In an interview with Economic Times, MG India revealed that by end of 2019, the company
expects to sell 18,000 units of Hector SUV. Considering that the Hector is only going to
launch by mid-June in India, the company expected to sell about 3,000 units of Hector a
month in 201935.
Despite the auto industry taking a slump, the new entrant the MG Hector, launched in India
on 27th June 2019, had received overwhelming response from buyers in the country. Orders
touched 28,000 units, in about 22 days post launch. The Hector was sold out for the ongoing
calendar year. The top two variants –Smart and Sharp- had registered the highest demand,
with over 50% reservations for the petrol variant [give source for the statement].
MG Motors now planned to ramp up production from a current 2,000 units a month to
around 3,000 units by September, 2019 so as to complete pending orders and re-open
bookings for 2020 delivery.
MG Motors had launched their flagship store in Gurugram along with another 120 centres
opened across the country in June, 2019. The management had planned to increase these
numbers up to 250 centres by September, 201936.

VII. POSSIBLE SOLUTIONS

MG Motors could work along the following lines to maintain their brand expectations:
Maintaining a proper employee & vendor relations as they are the first team of interaction. 
A lot of products had lost their differentiator as they got standardized or gained popularity.
Indian consumers are very selective and want the best while at an economical rate. MG
Motors would require to listen to their consumers in the market. The key lied in quick
response to any problem.
Dealer viability and dealer manpower R&R are important factors to be considered by MG
Motors.
Toyota had established an incredible dealer network strategy. MG Motors too, would need
to put constant energy to cajole, impress, retain.
 
Factors such as after sales experience and cost of ownership also formed an important aspect
for the company. Maintaining quick response to service requests and making sure that the
availability of spare parts are in line is detrimental.
Finally, the resale value of the car is always a strong indicator to the success in relation to the
points mentioned above. This could ensure a sustainable future for MKG Motors in India.
34
https://motoruncle.com/forum/ForumDetails/Why-it-wont-be-a-Cakewalk-for-MG-Motor-at-India-
35
https://www.rushlane.com/mg-hector-sales-target-12305017.html
36
https://www.indiatoday.in/auto/latest-auto-news/story/mg-motor-india-showroom-inaugurated-hector-
test-drives-from-june-15-1542615-2019-06-04
Figure 1: Passenger vehicles market share 2018

Source: https://auto.economictimes.indiatimes.com/news/industry/complete-india-auto-sales-
analysis-2018-cv-sales-crosses-a-million-mark/67549073

Exhibit-1: Exterior Features

Features Hector Harrier Compass XUV50 Creta Seltos Kicks Captur


0
Headlamps Projector(LE Projector(Xenon) Halogen LED LED LED LED LED
D)
DRLs LED LED Halogen LED LED LED LED LED
Front Fog Yes Yes Yes Yes Yes Yes Yes Yes
Lamps
Alloy 17” 17” 18” 18” 17” 17” 17” 17”
Wheels
Source: https://autoportal.com/newcars/mg/hector/specifications/

Exhibit 2: Comparison of features (Hector v/s Competitors)

Feature Hector Harrier Compass XUV50 Creta Seltos Kick Captur


0
Keyless Yes Yes Yes Yes Yes Yes Yes Yes
Entry
Push- Yes Yes Yes Yes Yes Yes Yes Yes
Button
Start
Auto 1- 1-zone 2-zone 1-zone 1-zone 1- Yes Yes
Climate zone(Remo zone(Remo
Control te AC te AC
on/off) on/off)
Cruise Yes Yes Yes(Trailha Yes Yes Yes Yes Yes
Control wk only)
Automatic Yes Yes Yes Yes No Yes Yes Yes
Headlamps
Automatic Yes Yes Yes Yes No Yes Yes Yes
wipers
Sunroofs Panoramic No Panoramic Yes Yes Yes No No
Tyre Yes No No Yes No Yes No No
Pressure
monitoring
system
Electric Yes(DCT No Yes No No No No No
Parking only)
Brake
Heated Yes No No No No No No No
Wing
Mirrors
Powered Yes No No No No No No No
Tailgate
Instrument Analogue Part- Analogue Analogu Analo Analogue Part- Part-
Cluster Digital e gue Digital Digital
Head-up No No No No No 8-inch No No
display
Terrain No Yes Yes(4x4 No No Yes No No
Modes only)
All-wheel No No Optional Optional No No No No
drive
Source: https://autoportal.com/newcars/compare/toyota-innova-facelift-vs-mg-hector.html,
https://autoportal.com/newcars/compare/jeep-compass-vs-mg-hector.html
https://autoportal.com/newcars/tata/harrier/
https://autoportal.com/newcars/mahindra/xuv500/

Exhibit 3: MG Hector Vs KIA Seltos: Petrol Engines

Seltos Hector
Type 4 cyls, naturally aspirated/4 4 cyls turbo-petrol
cyls turbo-petrol
Displacement 1.5-litre/1.4-litre 1.5-litre
Power 115hp/140hp 143 HP
Torque 144Nm/242Nm 250Nm
Manual gearbox 6-speed 6-speed
Automatic gearbox CVT/7-speed-dual-clutch 6-speed dual clutch
Mild-hybrid tech No Yes
Source: https://www.autocarindia.com/car-news/kia-seltos-vs-mg-hector-an-analysis-413235

Exhibit 4: MG Hector Vs KIA Seltos: Diesel Engines

Seltos Hector
Type 4 cyls, turbo-diesel 4 cyls, turbo-diesel
Displacement 1.5-litre 2.0-litre
Power 115hp 170hp
Torque 250Nm 350Nm
Manual gearbox 6-speed 6-speed
Automatic gearbox Yes No
Engine modes Yes No
Terrain Modes Yes No
Source: https://www.autocarindia.com/car-news/kia-seltos-vs-mg-hector-an-analysis-413235

Exhibit 5: Ex-Showroom Price Comparison of primary model of MG Hector and competitors

Price MG Hector 1. Toyota Inno Jeep Compass  Tata Harrier Revot Mahindra XUV50


5L Style va 1.4 Limited orq XE 0 G AT
Crysta 2.4 AT
GX 7 STR

Ex- 12.18 Lakh 15.77 Lakh 19.96 Lakh 13.00 Lakh 15.81 Lakh


Showroo
m
Source: https://autoportal.com/newcars/mg/hector/

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