MG Offers an Ecological Bonus Lesson to the French Government

In 12 months, MG has faced consecutive challenges with the end of the Green Bonus and rising customs fees… and has offset both!

What should a manufacturer like MG do when it dominates the electric market with the MG4 and the European Union decides to strike where it hurts most: the wallet? After declaring the MG4 ineligible for the Green Bonus because it is produced in China—logical—the European Commission imposed additional tariffs on all electric vehicles imported from China. A decision with significant consequences, including an extra tax of over 35%!

Faced with this announcement, MG quickly responded by affirming that there would be no price increase for its vehicles in France. A bold strategic choice, because it’s not a matter of absorbing a slight increase but of bearing a substantial additional cost. The measure was so foreseeable that most manufacturers prepared in advance. How? By importing large numbers of vehicles into Europe before these new taxes took effect. A straightforward maneuver in theory, but one that requires significant financial and logistical capacity to store thousands of cars awaiting sale, thus immobilizing capital.

This strategy goes against the traditional just-in-time production model, which advocates adjusted production based on demand to avoid stock overloads. But sometimes, breaking the rules can pay off, especially in the face of such persistence. Here’s how you can now find in France 2023 model MG4s for only 24,990 euros thanks to a €5,000 electric MG bonus. And this price is guaranteed until December 21.

MG was already offering better than the €4,000 Bonus, but with this bonus reduced to €3,000, the Sino-British manufacturer becomes Santa Claus and benefits from a wonderful publicity opportunity in France.

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