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Chinese takeaways

It might be under ownership from the Far East, but the MG brand remains synonymous – and popular –with the UK market. Within that, fleet is going very well, says Geraint Isaac, head of fleet at MG Motor UK

How is MG’s fleet business this year?

Fleet has grown almost in proportion with retail in 2022. Total figures for this year –to the end of July – saw a year-on-year increase of 76% to just over 28,000 vehicles (28,149). Of that, feet accounted for just under 14,000, or around 45% of the overall business. For us, that is where it needs to be. We’ve grown as a manufacturer over the last three to four years and the fleet element has also grown, which is always the goal.

We are conscious about how we do the channel mix – we don’t want to be overexposed in one area of the business or another. So, for example, everything on rental is done on buy back, we don’t do any risk rental. Then we manage the vehicles coming back and those prices, which obviously helps with residual values.

How much has it helped RVs?

Our RVs have improved over the past three years and that’s not by happened by chance. We’ve done a lot of things in the background to help not just how we go about our business, but also engaging with the main RV setters. Right from the outset, we’ve been open, honest and transparent with them about what we’re doing and the way the business is going. They obviously like what they see because we’re getting those sorts of improvements. I also share with them, on a regular basis, our used car value achievements, which helps our performance on the used car market.

What’s the goal with your RVs from here? Further improvements, or have you reached a ceiling?

We have adopted – and will continue to adopt – an open engagement with RV setters. With MG4, for example, they got to see early prototypes and the further evolutions of the car, culminating in the final production version. And each time we met with them, we gave them a business briefing and an understanding of where we’ve gone as a business and our plans for the future. They now understand that we’re a global organisation and very much here to stay.

Fleet is an important channel for us and when you split it up and we were actually focusing on, good long-term, true fleet business. That’s obviously good for used car values to down the line. So, it is a continuous dialogue that we have with them. And we plan to continue doing that, because it’s really important for us.

What is the potential for the next 18 months for MG in the fleet market?

I think the biggest opportunities for us are come from the new products we’re bringing out being EVs, such as MG4 as well as the facelifted MG5, which is almost like a new car! So we’ve got three full EVs and a plug-in hybrid now. So, from a fleet perspective, we’ve got four vehicles we can offer that are tax efficient, environmentally friendly and very price competitive.

MG5

MG HS PHEV

MG4

MG ZS EV

“Our models lend themselves to private and public sector opportunities such as salary sacrifice”

Geraint Isaac, head of fleet, MG Motor UK

We believe our models lend themselves to private and public sector opportunities such as salary sacrifice – and these are the areas of business that my team are now targeting. Meanwhile, leasing was a big focus area for us last year in terms of growth and it continues to be this year. By the end of July this year, we’d exceeded the volume of leasing we had for the whole of last year. We’re showing consistent growth in certain areas and targeting those areas. I told the team to focus on avenues to target for business and we’ve attracted some big blue chip organisations and won some big business with MG5. With the new models that are coming – and their levels of practicality, design and technology – it’s an exciting period.

Does that success and interest in the brand surprise you?

Yes and no. To a certain extent yes, in terms of how quick it’s come about. But the MG brand has been around for such a long time and people remember MG its previous incarnation. So the brand identity and brand awareness is still really strong. And when you look at the product’s build quality, standard specification and price compared with direct competitors, there’s a distinct advantage.

How important are PHEVs to MG?

They are vitally important right now, because drivers have two main trains of thought. You’ve got an ICE driver wanting to convert to EV, but who isn’t quite sure, so they go for a PHEV to get a bit of both worlds. They benefit from low emissions and BiK, but they are still not convinced EVs are the way forward. Then there are also high-mileage drivers who feel EVs aren’t for them. But PHEVs, such as our HS version, are a stepping stone where they can get a feel for them and understand the characteristics.

MG was the fastest-growing non-solely EV brand in 2021. Same for 2022?

Fastest growing Manufacturer. We cannot state we are the fastest-growing manufacturer overall this year, as a few smaller volume brands have beaten us on YTD figures. However, we are clearly the fastest growing in the Top 15 and our EV mix is 23% compared to the market average of 14% of those manufacturers that sell both EV and ICE.

What the potential for MG4 with fleet customers?

We’re really excited about MG4 because there are so many different segments in the fleet market that we know this car can lend itself to. Not just in range, but the capabilities – it’s a versatile hatchback, so it’s got the flexibility of folded down seats, but also lots of cabin space if you want to carry luggage. The cabin space means four or five adults can sit comfortably. So, if it’s your company car and you’ve got small family, you could actually run it as your own car.

I had a conversation recently with a major fleet organisation that is now reviewing its policy. It started looking at plug-in hybrids, but is now talking about going full EV, certainly in three of its five bands. With ZS EV, MG5 and MG4 as all electric options, there is a lot of choice and scope. In fact, in the case of the MG4, because of the price point and what it offers in terms of driving range and size the company can offer it in all three bands.

IN PROFILE

Number of models: 7

Best fleet seller: MG5

How many total cars sold last year: 30,600.

Next model launch: MG5 Facelift – November 2022.

FLEET FACT

MG sponsors the Welsh FA. In a recent photoshoot and drive with some of the squad, Gareth Bale commented that he was so impressed with the new MG4, he’s considering buying one!

Aims for the future

To continue our growth in the fleet market by offering the products and services for all sectors. With the new product offensive we have over the coming years, the future is exciting.

Who is Geraint Isaac?

For nearly 20 years, Isaac has spent time at various manufacturers, including Vauxhall in a regional fleet role, before joining Hyundai. He stayed with the Korean manufacturer for nine years, starting out in another regional position before being promoted to have overall responsibilities for residual values and and remarketing. For his last 18 months he was given the added responsibility of Hyundai’s rental business.

Geraint Isaac, head of fleet at MG Motor UK

Isaac joined MG three years ago, when he was given the remit to grow fleet! Firstly holding the title of national fleet sales manager, he became head of fleet just over a year ago. Within that role, he manages a team of three fleet professionals in the field.