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Undoubtedly the introduction of electric motor technology revolutionised the MG brand, which has, for many years, been subject to periods of instability and ownership change.
None of us at e-car could have foreseen the impact that the Chinese-owned car manufacturer could have on the UK’s electric car transition, with both the SUV ZS and the estate MG5 quickly becoming two of the primary affordable all-electric vehicles to lease. While the ZS debuted in 2017 in petrol format, the change to electric started in China around 2018, with these platforms reaching Europe shortly thereafter.
And while there was some trepidation and reticence towards this new product, it quickly became apparent that MG really understood the EV lifestyle, with two battery choices, clear specification choices and simple designs. Where some manufacturers erred in the beginning was that they tried to be too unique and over-engineer their vehicles to look “different” in zero-emission format. And the truth is that the car in the current format is fine, both externally and internally, so it was frustrating when manufacturers were deviating from a tried and tested formula.
In particular, for those customers leasing an EV for the first time, there is already enough to contend with when taking into account the key facets - charge points, charging times, range and cables etc.
Built in China, the electric ZS isn’t just a practical and reliable car, but it is also relatively affordable in comparison to some of the competition. Within the SUV and crossover segment, the UK customers can decide between the Hyundai Kona, Kia Niro EV, VW ID and Skoda Enyaq and the truth is that none of these options are particularly “cheap”.
2022 has been a year of change and overhaul, with limited supply of vehicles leading to a year to date decline of 10% on new car registrations as at August. However, it is probably key to note that some 137,000 BEVs have been registered to date, compared to 92,000 in the same period last year.
But what is concerning is that this is probably due to the popularity of EVs in the company car and salary sacrifice markets, where the reduced company car tax / BiK exposure is making this such a sage financial decision. But for electric cars to work in accordance with the Government’s lofty 2030 / 2035 zero-emission strategy, more needs to be done for retail and personal contract hire customers in both new AND used sectors.
For contract hire brokers like e-car lease, the used car industry is essential, with this really dictating the residual value and depreciation associated with pure electric cars. The more a car can retain value, because of popularity at contract end, the more affordable a monthly rental is likely to be.
And getting to an affordable electric car deal has been tough in 2022. Not only have we experienced the declining discounts and increasing prices due to a myriad of issues - war, covid, shortages, energy prices, Brexit - but the grants and incentives for plug-in and electric vehicles has been removed.
Starting in 2011, the UK Government put in place robust support for cars (and vans) which began as a £5000 contribution towards the purchase price. By December 2021, a small list of vehicles which had a recommended retail price (RRP) of £32,000, or lower, enjoyed a £1,500 contribution.
From June 2022, the Office for Zero Emission Vehicles (OZEV) confirmed a complete end to grants on any new EV, with a corresponding limit applied to the grants available on domestic charge points too. None of this was unexpected and the electric automotive industry was prepared for these changes. But it did have a more profound impact, with the already rising costs in production and delivery coupled with an increase in finance rates, as the Bank of England continues to increase interest rates and thereby impact the “cost of funds”.
This is why a manufacturer like MG is so crucial to electric cars in the UK, as they are able to produce vehicles with economies of scale allowing for both speed and efficiency. Until recently, the supply chain issues had not affected MG and the group, unlike many others, had not taken the decision to increase the cost of their product - although some of the fleet discount was reduced.
It is unsurprising that many UK families are utilising the ZS EV as their next SUV option. And with cargo volume of 450 litres coupled with towing capacity (braked and unbraked) of 500kg, this is a good solution for those customers with children and pets who want true value for money. And the running costs of the ZS also need consideration as this has become more topical.
The growing electricity prices has undoubtedly made some customers nervous about the prospect of shifting their fuel choice away from petrol or diesel but in recent announcements the UK now has some clarity. The Government announced on the 8th of September that for customers on a standard variable tariff they will be subject to a 34p/kWh maximum charge; much lower than the 50p+ tariffs being reported late in August.
For the smaller battery ZS this means a full charge of £16.66 from 0 - 100% with the bigger battery likely to cost around £23.22 on the same metrics. Considering this will supply a week’s driving for the average commute, this still provides a cost-effective and affordable motoring solution.
MG ZS Electric Hatchback 115kW Trophy EV Long Range 73kWh 5dr Auto (Pure Electric Vehicle)
In terms of the car shown, the MG ZS Electric Hatchback 115kW Trophy EV Long Range 73kWh 5dr Auto (Pure Electric Vehicle), this is based on the following configuration:
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