8:09 am, October 16, 2023
Chinese-owned car maker MG clocked up profits of £54m in the UK last year as revenues more than doubled.
The electric car specialist – which will shortly launch a two-seater sports EV named the Cyberster – revealed profits surged 1,188% to £54m in 2022, up from £4.2m in 2021.
Annual sales revenue doubled on the previous year and topped £1bn, its annual accounts for 2022 filed at Companies House reveal.
The documents show car sales grew from £437m to £989m in the year, aftersales added £16m and services to its network added £1.6m.
The brand says its sales growth was ‘supported by an optimisation’ of its dealer network in the UK, which remained at 153 showrooms. Car Dealer research showed last year MG added the second-highest number of new dealers.
Writing in the annual report, director Hao Wang said: ‘Whilst the total number of dealerships remained at 153 there were a number of exits and entries which continued to improve the profile of dealers, replacing loss-making dealerships with secure regional groups who have capability to invest more heavily in people, processes and local marketing.
‘This led to both greater capacity and coverage of the UK automotive market. 2022 also saw a full year of sales of the MG5 and the introduction of the MG4 alongside organic growth of sales of our traditional models.’
MG says it plans to continue what it calls ‘optimisation’ of its dealers which are operated by 98 partners across the country.
The documents also show net assets for MG Motor UK Ltd increased to £71.7m in 2022, up dramatically on the £26.5m at the end of 2021.
MG has seen sales surge thanks to a range of affordable electric cars which have resonated with retail buyers. The electric MG ZS was launched in September 2021 and was followed by the MG5 and the popular MG4.
Wang added: ‘The [MG4 was] launched in late 2022, winning multiple awards and saw exceptional sales. 2023 has seen the launch of two new variants of the MG4, the Xpower and Extended range, which will increase the already impressive sales of the MG4.
‘With support of MG UK’s ultimate parent company (SAIC Motor Corporation Limited) MG has an exciting pipeline of new models and updates which will include the expected launch of the Cyberster in the summer of 2024.’
In May, MG commercial director Guy Pigounakis told Car Dealer that its partners were already taking orders for the forthcoming Cyberster, despite no prices or date for its arrival being announced.
The pure electric sports car – which will have up to 500bhp and be able to hit 60mph in 3.1 seconds when it arrives some time in 2024 – is likely to cost between £50-60k.
MG is unsure of how many Cybersters it will sell, with Pigounakis explaining it could be anywhere between ‘1,000 or 3,000’ a year.
‘The dealer network is incredibly excited about its arrival,’ he said.
The car has been touring MG dealers in the past few weeks with dealer bosses reporting the response to the car to have been ‘overwhelmingly positive’.
Luscombe Leeds told Car Dealer it had already secured 15 deposits for the new model and expected many more over the coming months.
In its accounts, MG said it felt its ‘strong electric car offering’ had put it in a ‘strong position’ to take advantage of the ban on petrol and diesel cars when it arrives in 2035.
The documents showed the highest-paid director received remuneration for the year of £412,000.
Meanwhile, the company used £24m of previous years’ losses to offset its tax bill which, for 2022, meant it paid tax of £8.9m on its profit.
