1. October 2024 Was When The Party Started

The following table presents the sales of the Windsor and MG India for a 13 month period starting September 2024:

Barring the Feb 2025 sales, where MG witnessed a low-double digit slow down, in every single month, MG reported a strong double-digit YoY growth. They even stretched their gains beyond 70% in December 2024.

In September 2024, the numbers were down 8.30% but that’s also when Windsor’s sales figures hadn’t started showing up on the charts. Windsor only started adding to MG’s fortuners on sales charts in October 2024.

To sustain this kind of growth, MG would need another hero, which they didn’t have in October 2025. So, even if they are able to maintain the same strong demand for their cars, especially the Windsor, the best case suggests that the production figures will remain flat. But even staying flat appears to be a difficult task. Read on to find out why.

2. No GST Relief For EVs

MG had gotten accustomed to the lowly 5% GST rate for electric cars while petrol and diesel cars of comparable size continued to be taxed at around 45%. This made it easier for MG to make a strong case in favour of electric cars, especially the Windsor. That’s exactly why they had a great run. At older GST rates, for anyone buying an electric car, the km-to-breakeven compared to similar petrol or diesel cars was fairly low. In fact, in the case of Windsor, which had a lower price than comparable petrol/diesel cars, the “inconvenience” of an electric car seemed to be well compensated by the fuel cost savings, which started almost immediately after the purchase.

However, the government threw a curve ball and dropped the taxes on cars across the board while electric cars got a step child like treatment. Even though the C-segment cars got the least in the name of tax relief, any tax cut works against electric cars as they get nothing at all. This makes it even more difficult for buyers to justify buying an electric car. And, there weren’t that many EV buyers to begin with. Buyers with high running now have the option of diesel as they got the biggest tax cut across all segments.

With the new tax structure, we should safely expect EVs to lose some ground, at least in the short term. Since MG’s focus is heavily on electric cars and that’s what drives their volumes, this will affect them more than any other car manufacturer. Moreover, the taxes largely helped manufacturers cut prices on the small cars and very large cars. MG don’t have a volume player to make the most of the GST benefits in either segment. This means, demand for their cars is more likely to shrink compared to October 2024 or at best remain more-or-less flat in October 2025.

3. Slowdown May Be Imminent

The thing with special editions is that they are a strong indicator of demand slowing down or not keeping up with the expectations. The MG Windsor recently got its first “special edition” treatment in the form of Windsor Inspire Edition.

Here’s the thing with special editions: they give manufacturers an opportunity to create some buzz about the product during its lifecycle. Thus, people who may have forgotten about a car and are considering buying something else in the price band or segment focus some attention on the car that all of a sudden appears to be showing up in the news. It basically improves customer mind share of the product.

The fact that MG had to intervene and bring a special edition of the Windsor soon after the GST revision suggests that the demand for the Windsor must have dropped considerably. Meanwhile, the GST cuts appear to have revived the auto sector and we are expecting to see at least double digit YoY growth for all carmakers in October 2025.

Your Thoughts

What do you think about our arguments to support our prediction? Are we making sense or do you think some miracle may still help MG continue their winning streak? What could help them post double-digit YoY growth in October 2025? Please let us know in the comments.

Also Read: Everything About MG Windsor Inspire Edition

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