MG goes from strength to strength in Australia, outselling Hyundai and Mitsubishi - is this a sign of things to come?

MG has had a stratospheric rise in Australia over the course of the last year, but its sales performance in the last month of 2022 might be a sign of even bigger things to come for the China-backed upstart.

While we know MG has fortified its position in Australia’s list of top-10 carmakers over the course of 2022, in December it even managed to outsell Mitsubishi and Hyundai, moving 5194 units and capturing nearly six percent of Australia's market.

For the December month, that would boost MG to fifth position in Australia’s market, trailing only Toyota, Ford, Mazda, and Kia.

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Overall for 2022, MG placed seventh, moving 49,582 units and capturing 4.9 per cent of the Australian market, putting the likes of Subaru, Isuzu Ute, Mercedes-Benz, and Volkswagen in its rear-view mirror, and by a solid margin, too.

The next automaker for it to eclipse would be Ford, which currently commands 6.2 percent of the Australian market, having moved 66,628 units this year, the grand majority of these being its smash-hit Ranger ute (47,479 units).

MG doesn’t have a light commercial vehicle, with that side of the business handled by sister brand LDV (both from China’s SAIC Motor), though neither does Hyundai, Kia, or Mazda, which still outrank it for the year. 

MG has achieved this with just three models. The popular MG3 hatch now has a commanding 46 per cent share of the light car market, taking sales away from the likes of the Suzuki Swift, Toyota Yaris, and Kia Rio thanks to low prices and stock availability.

The ZS Small SUV is a success for the same reasons, bolstered by the addition of the updated ZST variant. Combined, It now accounts for nearly 30 per cent of the small SUV market, outranking previous favourites like the Mazda CX-3 in what is one of Australia’s most competitive segments.

The MG3 MG controls almost 50 per cent of the light car market.

Finally, the mid-size MG HS has made a mark, too, although not as significant. After a slow start, the HS now accounts for 6.2 per cent of the mid-size SUV market, moving just 858 units in December. It was even outranked by its key Chinese rival, the Haval H6 in the last month of the year. For the whole year 2022 it managed a respectable 10,948 units. Its core point of difference is the +EV variants, which rank as some of Australia’s most affordable plug-in hybrid cars.

What will 2023 hold for MG? The brand is set to launch at least two new models in the first half of this year, a two-pronged assault on the small hatchback and sedan segment in which the brand currently does not play.

The first is the MG5 sedan. This car is larger than the MG3, similar in dimensions to the Toyota Corolla, Hyundai i30, or Kia Cerato. It is powered by a 1.5-litre four-cylinder turbocharged petrol engine, which overseas produces 127kW/275Nm mated to a seven-speed dual clutch automatic, driving the front wheels.

MG is having a great year thanks to strong SUV sales.

Expect it to lay a challenge to entry versions of the Toyota Corolla (Ascent Sport - $28,630), Kia Cerato (S - $26,290), and Hyundai i30 (Active - $27,690).

The second offering also for the first half of 2023 is the MG4. Offered in a similar size-bracket to the MG5, the MG4 is a fully electric hatchback in the vein of the Nissan Leaf or Volkswagen ID.3. Set to be more affordable than the Leaf, and more of a challenger to Australia’s most affordable electric cars like the BYD Atto 3, the MG4 also debuts new technology and styling cues for MG in Australia.

TheMG5 shares similar dimensions to the Toyota Corolla, Hyundai i30, or Kia Cerato.

It’s not all rosy for MG, however, which will face increased competition from China, particularly in the form of BYD, which looks to challenge the brand’s entry-level EV offerings, as well as GWM/Haval which is making a particular impact on the combustion and hybrid SUV front. GWM will also launch its Ora brand in Australia in 2023, with a small electric hatch designed to take on the MG4. Even Chery is eyeing the success of Chinese brands in Australia, and is looking to make a return.

MG will also face a renewed push from old Aussie favourites, particularly Nissan which is in the process of bolstering its line-up with fresh versions of the historically popular Qashqai, X-Trail, and Pathfinder.

One thing is certain, the end-year results from 2023 will look very different from 2022.