Fleet buyers have traditionally been loyal to one or two brands which consolidates buying power and reduces complexity. However, with more organisations looking to transition their fleets to electric vehicles, Fleet Managers cannot ignore the new players that are popular with private car buyers.
When I caught up with the MG Motor fleet team to take an exclusive look at the MG4 (which costs less than $40,000 and has a range of350km), I asked how the fleet industry was responding to a new entrant.
“A wide range of fleet customers are showing a lot of interest in our expanding range of products,” responded Matthew Morrison, General Manager – Fleet at MG Motor.
Which makes sense when you look at the model lineup of EV and PHEV with different price points, specification levels, and driving range.
The rental fleets are generally the first stop for new brands entering the market because they can deliver sales volume quickly with the benefit of introducing new models to a large number of potential buyers. Sustaining the newly secured volume without damaging its reputation with other fleet channels, or impacting future resales, is a narrow path to walk.
MG Motor appear to have sailed through this period in their journey unscathed thanks to the pandemic induced supply chain issues and a product pipeline of electric vehicles at a time when organisations are ready to transition their fleets to zero and low emission vehicles.
One of the first fleets to buy electric vehicles was City of Greater Bendigo in Victoria. They purchased five MG ZS EVs in September 2021. At this time, Richard Lawson, Fleet Services Procurement Officer at City of Greater Bendigo, believed it was the right moment for organisations to take proactive action.
“By having the MG ZS EV option in market, suddenly the numbers began to make sense from an investment perspective,” said Lawson. “Our analysis proved that the 263km range of the MG ZS EV is more than sufficient for the mileage requirements of our fleet, even in the more rural parts of Bendigo.”
Since then more fleets have added electric (and petrol) MG vehicles to their carparks. Most started with one as a trial and in 2023 are now ready to talk about the transition of more vehicles which is perfect timing for MG Motor with the arrival of the MG4 with different sized battery packs to suit most fleet applications.
