New car bargain lands in Oz! 2025 MG3 Vibe challenges the Kia Picanto as the cheapest new car on sale in Australia

MG is again challenging the market with one of the most affordable cars on sale in Australia.

The Chinese brand is adding a new entry-level variant to its MG3 small hatchback range in Australia.

Dubbed the MG3 Vibe, it is priced at $21,990, drive-away, which puts it within striking distance of the base Kia Picanto Sport manual at $21,340 drive-away.

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The MG3 is bigger, though, has an automatic transmission and comes backed with MG’s benchmark 10-year/250,000km warranty (Kia: seven-year/unlimited km).

MG copped some criticism when it launched the new MG3 last year with a $500 jump in price over the outgoing model. This new variant goes some way to addressing the leap in price.

The Vibe grade is only available with petrol power, with a hybrid option reserved for the more expensive variants for now.

It uses a 1.5-litre, four-cylinder engine to make 81kW/142Nm and runs on the cheapest unleaded petrol, further enhancing its value proposition. MG claims it drinks 6.0L/100km on the combined (urban/extra-urban) cycle.

It comes with 15-inch steel wheels, halogen headlights, a reversing camera, fabric upholstery and a 10.25-inch multimedia screen with Apple CarPlay and Android Auto.

It features relatively basic safety equipment with auto emergency braking and lane keep assist included, but does without blind-spot detection and rear cross-traffic alert. The MG3 also received a three-star (from a possible five) ANCAP safety score.

MG Australia CEO Peter Ciao said the addition of the Vibe was to help combat the current cost of living pressures.

“We recognise many Australians are doing it tough with the cost of living. We are proud to deliver the MG3 Vibe, providing great value for Australians as they look to purchase a new car,” said Ciao.

The MG3 Vibe arrives in dealerships this week.