Is SAIC’s IM Banking On MG Rebranding?

CarNewsChina reports that the IM brand, co-owned by SAIC, intends to rebrand its models as MG for European and South American markets. This strategic move aims to capitalise on MG's global success and increase sales in international markets.

For those who are still unaware, both MG Motors and IM Motors are subsidiaries of the SAIC Motor Corporation Group. IM Motors is a collaboration between SAIC Motor Corporation Group, Zhangjiang High-Tech Park, and Alibaba Group.

The iconic British marque, MG Motors was founded in Oxford, in 1924 and boasts a rich century-long legacy before ending up at its ninth brand owner, SAIC Motor Corporation.

Unlike the MG brand, IM vehicles are exclusively sold in Mainland China presently, with 2023 cumulative sales reaching 38,253 units. However, this figure is significantly lower than that of its main competitors, even in the Chinese market, where Tesla sold over 645,000 cars in 2023, Xpeng sold over 121,000 cars, and Nio sold over 160,000 electric vehicles.

In order to boost these numbers, the SAIC group would be looking into the above-mentioned rebranding initiative to bolster IM model sales in Europe and South America while also using the IM cars to bridge gaps in MG's current lineup.

In 2023, MG Motors achieved global sales of more than 840,000 units, making it the top Chinese automotive brand in export volume for the fifth consecutive year and accounting for approximately 70% of SAIC Group's overseas sales volume.

MG's success extended to a favourable uptake in 16 countries, including Western Europe and Australia, with sales reaching nearly 380,000 units. In Thailand, MG sold 19,049 units in 2023. The MG4 EV is Europe's best-selling compact electric vehicle, with overseas sales exceeding 130,000 and monthly sales exceeding 10,000.

Furthermore, this rebranding exercise is not something all too new for the SAIC Group where various export models are rebranded as MG. For example, the Roewe Ei5 became the MG5, and the Wuling Air EV was transformed into the MG Comet and MG Hector, achieving impressive sales in the Indian market.

SAIC hopes to achieve a 2024 sales target of 1.35 million units through the MG rebranding exercise, which will help solidify MG's new global presence, particularly as the MG brand celebrates its 100th anniversary in 2024.

MG Motors will launch the MG4 EV in Malaysia this week. More on that soon.