The new MG 3 is pricier than its predecessor, owing to the inclusion of a lot more standard equipment – but the company still expects it to outsell its rivals.
“We are pretty confident we will still be number one in this segment,” MG Motor Australia CEO Peter Ciao told CarExpert.
“We try our best to provide a better spec, better technology, and more safety for our customers. We also aggressively control our costs.
“Even when we provide a much, much better spec vehicle for our customer, we are still very confident we keep our offer… we are the best value.
Hybrid models pictured
“If you choose to purchase any other brand with the same function, I trust their price is much, much higher than us. That’s our confidence.”
The price of the entry-level MG 3 has increased from $18,990 drive-away to $23,990 before on-road costs.
That has seen it relinquish its title as Australia’s cheapest car, with vehicles like the Kia Picanto and entry-level Mazda 2 now slotting in underneath.
“Yes, the price has gone up, but if I compare the old MG 3 Core with the new MG 3 entry, you’ll be surprised to know there is $7000 of equipment that has been added to the car,” said senior product and strategy manager Akshat Ahuja.
“We have done some good work on analysing where it should be, we have compared it against the outgoing MG 3…
“We are now very focused on safety. We understand there could be people who might not want that, but from our side as a brand we have a very huge focus on safety.”
Standard equipment on all MG 3 models includes autonomous emergency braking, blind-spot monitoring, lane-keep assist and rear cross-traffic assist, meaning it has a similarly comprehensive list of safety equipment to the Mazda 2 where all these features are standard.
It also edges out the Mazda with standard adaptive cruise control, not to mention comfort and convenience features like a larger infotainment screen.
Many rivals don’t offer as comprehensive a level of safety equipment as the MG 3 in their base model light cars.
MG says it doesn’t currently plan to offer a more affordable entry point to the range with less in the way of standard safety equipment.
“At this point in time, we have two exciting variants that we’ve taken into the market,” said David Hearty, general manager of marketing.
“It could be something that we would certainly evaluate and understand if there was a need for [a cheaper model], but for the moment the two vehicles that we’ve brought to market we think are really, really compelling offers and offer a great balance for our customer.”
MG says it’s working with ANCAP and Euro NCAP on safety testing, with a rating from the European latter coming in the first quarter of 2025.
The outgoing MG 3 has an outsized share of the segment it competes in, leapfrogging key rivals almost certainly helped by its low price and seven-year, unlimited-kilometre warranty.
In 2023, MG sold 15,430 examples in Australia, for a 43.3 per cent share of the light cars under $30,000 segment.
That was well ahead of the second-place Suzuki Swift, of which 6914 were sold. It had a 19.4 per cent share of the segment.
In third place was the Mazda 2, with 5181 sales and a 14.5 per cent share.
Outgoing MG 3
There were some cracks appearing, however. MG 3 sales were down 4.6 per cent after a period of meteoric growth despite its advanced age, and sales have naturally dipped further as the old car is run out.
In the first five months of this year MG has sold 4856 examples of the hatch, down 31.1 per cent on the same period last year.
Despite this, it has an even greater share of its segment at 46.8 per cent.
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