Why Hyundai, Mitsubishi and Ford should be worried by MG: Incoming MG4 and MG5 could leap Chinese brand up the sales charts

At the start of 2022 we questioned whether MG could retain its place in the top 10 of the sales charts with only three models.

We shouldn't have worried.

Despite persevering with its original trio - the MG3, ZS and HS - the Chinese-owned brand was able to continue its meteoric rise in the Australian new-car market, finishing last year with the seventh most cars sold. That means it leap-frogged both Nissan and Volkswagen, despite a significantly smaller range and a lot less time in the local market.

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Remarkably, despite being strong sellers for the past two years, all three models experienced double-digit growth in 2022. The HS was the biggest improver, growing more than 60 per cent, while the ZS grew 21.9 per cent and the MG3 more than 17 per cent.

The MG3 now dominates the light car segment of the market, with more than 16,000 sold accounting for nearly 40 per cent (38.6%) of all cars sold in the class. Its closest challenger was the Suzuki Baleno with slightly more than 6000 sales.

It's a similar story in the small SUV market, with the MG ZS taking control of the sales race. In 2022 MG sold 22,466 examples to claim an 18.3 per cent market share, while its nearest rival was the Mazda CX-30 with 13,891 sales and a 11.3 per cent share.

The MG5 is powered by a 127kW/275Nm 1.5-litre four-cylinder turbocharged petrol engine and drives the front wheels via a seven-speed dual-clutch transmission.

But the growth of the HS will be the biggest boost for MG management. Despite it still sitting behind bigger names like the Toyota RAV4, Mazda CX-5 and Kia Sportage, the sales increase for the HS represented a major boost to MG's overall sales.

The good news for MG, but trouble for its rivals, is its long-awaited expansion is reportedly coming in 2023, with both the MG4 electric car and MG5 small sedan joining the range.

The pair will launch in the first half of this year, although there is no clearer timing than that. MG Australia first announced plans for the MG5 way back in 2020 but have faced numerous delays for its would-be Toyota Corolla rival.

It’s a similar story in the small SUV market, with the MG ZS taking control of the sales race. In 2022 MG sold 22,466 examples to claim an 18.3 per cent market share.

However, despite the declining sales of small cars, and perhaps buoyed by the success of the MG3 in the equally declining light-car market, MG Australia is hoping for another success story. The MG5 is powered by a 127kW/275Nm 1.5-litre four-cylinder turbocharged petrol engine and drives the front wheels via a seven-speed dual-clutch transmission.

Meanwhile, the MG4 small hatch could give the brand the most affordable electric vehicle, with overseas pricing indicating it could cost somewhere below $44,000. That would put it in direct competition with the BYD Atto 3, which starts at $44,381 plus on-road costs, and undercut the MG ZS EV, which is priced from $44,990 drive-away.

Pricing will of course be key for both new models, with the brand's strong performance in large part thanks to its highly-competitive prices compared to key rivals. However, if MG can price both the MG4 and MG5 correctly while maintaining interest in its existing range, the more established competition will need to keep an eye on their position in the sales charts over the course of 2023.