9:20 am, October 15, 2024
Chinese car maker MG saw sales in the UK rocket 59% last year as revenue soared to £1.4bn.
The brand says it is well placed to deal with a current ‘short term’ drop in demand for EVs and believes it is well set up to benefit from a move to electric cars in the future.
Despite this, the electric car maker has seen continued success with salary sacrifice scheme sales and fleet deals for its MG4 and says it is reaping the benefits of an enlarged car dealer network.
MG has just launched the Cyberster, a two seater electric sports car, as well as extended range and high performance versions of the MG4, and updated versions of its HS and ZS models.
In accounts, just filed at Companies House, MGUK explained that its accumulated losses over previous years were funded by its Chinese parent company SAIC Motor who will continue to support it in the future.
However, thanks to its recent performance, its UK arm is now recommending a £23.9m dividend is paid to shareholders.
This is despite profit before tax for the car maker falling 67% in 2023 – down to £17.6m from £54.1m the year before.
Car sales revenue has grown at a dramatic pace for MG with £1.3bn earned in 2023. It bought in £989m in 2022 and £437m in 2021 from new car sales.
‘The growth is driven by the continued introduction of award-winning new models helping MG develop into additional UK market segments,’ wrote director Hao Wang, in the company’s accounts.
‘Sales growth was supported by continued investment in the dealer network with a comprehensive coverage of the UK.
‘2023 also saw a full year of sales of the MG4 alongside organic growth of sales of our traditional models.’
SMMT figures show MG sold 81,289 cars in 2023, a 59% rise on the 51,050 it sold in 2022. It was the 11th best selling car brand in the UK.
Wang added: ‘The ending of sales of internal combustion engine cars in the next 10 years is approaching and MG’s strong electric car offering with a good mix of internal combustion engine vehicles allows us to deal with the short term UK drop in demand for electric vehicles whilst placing it is a strong long term position to take advantage of the move to electric cars.’
MGUK had 68 staff members at the end of 2023 and the highest paid director received remuneration of £607,000.
MG dealers ranked the brand the worst to represent in the UK in this year’s Car Dealer Power survey.
The brand fell 12 places to finish last in the survey with its dealers bemoaning the car maker’s accessibility of management, forward planning and bonus structure among other things.
The MG4 was this year named the Car Dealer Power Car of the Year in 2023, as dealers from all brands recognised the trailblazing difference it has made to the cheaper electric car segment.
