MG makes new HS PHEV bigger, more powerful while undercutting rivals on price

MG Motor is aiming to boost sales of the plug-in hybrid version of the new HS compact SUV by highlighting an electric-only range double that of the previous-generation model.

The HS was MG's No. 3-selling car across Europe in the first half at 29,151, behind the ZS small SUV and MG4 full-electric compact hatchback, figures from market researcher Dataforce show. Of those just 16 percent were plug-in electric hybrids, despite it being the only drivetrain option offered in the HS in several markets, including France.

MG wants to boost that figure to 20 to 25 percent with the new car, which has just been launched in the U.K., with European markets to follow later this year.

"PHEV is where the incremental opportunity is," David Allison, MG's head of product and planning in the U.K., told Automotive News Europe. The U.K. is MG's largest European market.

The MG HS PHEV has a 24.7-kilowatt-hour battery pack, which is nearly double the size of the pack in the current model (12.8-kWh), giving the new car an estimated electric-only driving range of up to 121 km (75 miles).

Only the new Volkswagen Tiguan PHEV comes close to matching the new HS with its 100 km electric-only range. The Tiguan PHEV, however, costs 35 percent more at 42,525 pounds ($54,200) for the entry model versus 31,495 pounds for the cheapest HS PHEV in the U.K.

Tackling tariffs

In Europe, MG's electric cars are now subject to a provisional import tariff of almost 50 percent of the wholesale cost to dealers after the European Union judged that automakers such as MG parent SAIC and others were being unfairly subsidized by the Chinese government.

However, combustion engine cars and PHEVs built in China and imported into Europe are not affected.

"Maybe that is an opportunity given we still have a really good advantage," Allison said. In the U.K., the combustion engine model starts at 24,995 pounds, which is close to the price of small SUVs offered by rivals.

"We have manufacturing advantages building cars in China, where the cost base is cheaper, but we also still see the need to undercut the competition to get market share," Allison added.

The new HS, which is based on the Roewe RX5 sold in China, will challenge better-selling models in the compact SUV segment such as the Nissan Qashqai, Kia Sportage, Hyundai Tucson and Ford Kuga.

The competitive price and additional range of the HS PHEV could persuade private buyers to pick the drivetrain, which has traditionally been more popular with fleet customers because in several countries they qualify for additional incentives.

The cost difference between a PHEV and a combustion engine model has traditionally put off retail customers.

"I don't think many people look at the running costs. It's all about the monthly price," Allison said. "But if I am looking to spend 30,000 to 40,000 pounds on a Kuga knowing I could get an equivalent HS and knowing I could plug it in, that might be the right equation."

MG has kept prices of the new HS close to those of the current model, with only small increases.

"The HS is the first car we have had that we will start doing renewals [customers swapping the old one for the new model], which is one reason we have not gone for a big price increase," Allison said.

The new PHEV HS boosts the power of the electric motor to 209 hp, which is now higher than the 143 hp offered by the HS with a 1.5-liter gasoline engine. That power increase means the car feels more like an EV because the combustion engine is not required to help when the battery is still full, even when accelerating hard.

Meanwhile, the new HS PHEV's range is long enough to cope with several days of an average person's commute before needing to charge.

At 4636 mm, the new HS is 26 mm longer than the current model and it is 14 mm wider (1890 mm). The new car's height has been reduced by 30 mm to 1685 mm compared with the current HS, helping to improve aerodynamics.

Trunk space has grown by 44 liters to 507 liters, which is the same for both combustion and PHEV variants.

Equipment levels are high, with the standard SE model in the U.K. coming with automatic headlights, rear parking sensors, rear parking camera, electrically adjustable heated door mirrors, electric driver and passenger seat, keyless entry, rain-sensing wipers, electric parking brake with auto-hold function, and two 12.3-inch displays with navigation.

PHEVs include vehicle-to-load (V2L) reverse charging functionality as well as adaptive cruise control as standard. Higher spec Trophy models include power tailgate, folding door mirrors and a 360-degree surround-view camera.