As well as finding ways to reach new customers, MG needs to focus on building out a car servicing network to strengthen loyalty, the MG spokesperson said. MG will also expand its dealer network in France to 200 outlets this year, from around 160 now, ensuring any MG customer is no more than 30 minutes from a sales and repair centre, the spokesperson said.

Apart from an aggressive price war shaking the EV sector, trade tensions are running high between China and the European Union, which is investigating whether Chinese EV makers benefit from unfair government subsidies.

SAIC is currently evaluating whether to build a factory in Europe.

Chinese EV maker BYD said in December it would build its first European plant in Hungary and the Italian government is holding talks with Chery Auto about the possibility of the Chinese firm manufacturing cars in the country, two sources told Reuters this week.

According to French auto consultancy Inovev, MG sold two out of three Chinese-made cars in Europe last year, with sales of 230,000 cars.

(Reporting by Gilles Guillaume, Writing by Nick Carey; Editing by Ros Russell)

By Gilles Guillaume