What's the difference?
Honda built its four-wheeled automotive empire on the back of small cars, flying in the face of 1970s convention that bigger was better. As the ubiquitous Civic grew larger and larger, a niche for a smaller car appeared, and that niche was subsequently filled by the City in sedan guise, and the Jazz hatch that sits alongside it.
The buying public, however, is simply not as interested as it once was in small hatches and sedans, and Honda, along with other importers, is feeling the pinch when it comes to slumping sales for its smaller models.
But are we all missing out on something here? After all, the Thai-built City is priced from a rock-bottom $15,990 in base manual form – which is not a lot of money for a Honda.
We’re trying the range-topping, $21,590 VTi-L to see what we may have been missing.
MG needs a win, and the MG4 Urban may be the right car at the right time to give the Chinese brand a major boost.
It has been a rough few years for MG, with sales in decline for the past two years, which has seen it tumble from Australia’s favourite Chinese car maker to a distant fourth place behind BYD, GWM and Chery.
Part of that could be because of its rapid expansion, both in terms of its total number of models but also the size of the vehicles it’s offering. The larger QS SUV and U9 ute have both received underwhelming responses from the car-buying public.
So, MG has returned to its roots - small, affordable cars. The MG4 Urban, not to be confused with the MG4 Hatch, is its new price-leading electric car and the company’s new management hopes it leads a sales revival.
Small sedan sales are on the wane, and as a result, the cars that remain in the market often aren’t the best in a brand’s lineup.
This is the case with the Honda City. While it’s got plenty of space for passengers and it’s economical, the performance of the drivetrain in terms of composure leaves a lot to be desired.
The underdone steering, too, makes the car uncomfortable for passengers more often than not, while the buggy, hard-to-use multimedia system is unforgivable in an almost-$22,000 car.
Put it this way… the larger, newer, more refined base model Honda Civic is tantalisingly close in price to the top-spec City, and we know which side of the dealership we’d be walking towards.
The MG4 Urban is not only the right car at the right time, perfectly catering to buyers looking to avoid rising petrol prices, it’s also a welcome return-to-form for MG as a brand.
MG is seemingly at its best when it sticks to small cars. It has traditionally excelled with the MG3 and ZS, smaller, more affordable products that keep expectations in check and can win over customers looking for the best bang-for-their-buck rather than simply the best car.
That’s not to say the MG4 Urban isn’t a good car. It offers tremendous value for money, excellent interior space and drives nicely, so anyone who has been considering making the switch to an EV should seriously consider this new arrival.
Note: CarsGuide attended this event as a guest of the manufacturer, with meals provided.
The City does a good job of disguising the fact that it’s a micro-sized sedan; at first glance, the revised front bar and grille that’s meant to mimic the one on the new Civic does such a good job that some people will need to look at the bootlid badge to find out it’s not a Civic.
A high waistline and a solid yet stylish sweep over the roof keep the City from looking overly twee, and even though the 16-inch wheels look a bit narrow, the overall impression is one of a larger car.
The interior, too, is spacious and airy, while the controls and steering wheel give the City an upmarket feel. There’s a little too much grey plastic inside, and hard plastics aren’t difficult to spot, but the City presents well, on the whole.
MG says the design inspiration for the MG4 Urban came from the $100,000 Cyberster. While there are certainly a lot of differences between that roadster and this hatchback, the air-intakes and wheel design are indeed very similar. And I guess the badge is the same too, so there’s that…
But, comparing it to the Cyberster misses the point. What makes the MG4 Urban’s design more interesting is the bits you can’t see. While it shares the same name as the MG4 Hatch, this car has almost nothing in common with it. That’s because this new MG4 Urban is based on the brand’s newer EV underpinnings that debuted on the MGS5 EV.
That means the MG4 Urban is front-wheel drive, whereas the hatch is rear-wheel drive, and because of the way the battery is integrated into the chassis, it creates not only a bigger hatchback but also one with a different shape.
The Urban is more ‘cab forward’ (to use design parlance) meaning a shorter bonnet, which creates more cabin room. It also means there is more boot space because the powertrain is located up front.
MG does a good job with cabin presentation too. It’s another step forward for the brand, improving the overall level of fit and finish from its earlier models, to create a cabin that looks modern and doesn’t feel like it has been built to a price.
Up front, the City is a great fit even for taller drivers, and its height-adjustable seat also means that the, err, less vertically inclined pilot can find a comfortable position behind the tilt-and-reach adjustable wheel.
A regular gear shifter and manual handbrake means the two cupholders are squashed under the centre console, but there are bottle holders in all four doors, as well as two more cupholders in the rear centre armrest in the VTi-L.
The VTi-L also gains two extra 12-volt accessory power points in the rear to complement the USB and a third 12V point up front, while the keyless entry system is not something you’d usually find on a car at this price point.
Sadly, the City’s multimedia system lets the side down - big time. Try as we might, we couldn’t connect a phone to our tester, no matter what we did, and it’s just utterly unintuitive to use in most situations.
It’s a bit of a rude shock, actually; most manufacturers have media systems sorted, but there’s simply not a even a half-decent one in any Honda that’s currently on sale. And there's no Apple CarPlay or Android Auto, though you can find those mirroring systems in the larger Civic.
Rear seating has adequate headroom – just – for taller teens, and there isn’t a lot of compromise required from front seaters to comfortably accommodate four people. Five? That’s getting crowded, but it can be done.
Two ISOFIX baby seat fixtures are present, along with three top-tether mounts. Boot space measures 536 litres - which is actually 12 litres bigger than that of the new Camry - while both rear seats fold flat(ish) to increase load capacity further.
A good point; the seats can be unlatched via boot-mounted buttons. A bad point; you still have to reach in and push the seats down by hand. A space saver spare nestles under the boot floor, as well.
As I just mentioned, the cabin is bigger than the other MG4, which creates good space in both seating rows.
Up front they’ve placed the gear selector on the steering column to create space for more storage in the centre of the car. That means there’s plenty of shelves, cubbies and cup holders to take care of your small (and not so small) items, spread across the cabin.
As for the boot, the switch to a front motor and a smaller rear suspension means a 382-litre boot with all seats up and 1266L if you drop the back seats. Plus there’s a 98L underfloor storage spot, in place of a spare wheel (with a puncture repair kit included instead).
The design of the key controls are simple and easy to use, with a digital display for the instruments ahead of the driver and a 12.8-inch multimedia screen in the centre of the dashboard.
Navigating the menus is relatively straightforward but in a victory for user-friendliness, MG has listened to feedback (and incoming Chinese government regulations) and added some physical controls. There are buttons and a dial for the air-conditioning system and a volume knob for the sound system.
The top shelf VTi-L is the best of a two-model lineup, and costs $21,590 plus on-road costs. It comes with an 88kW 1.5-litre four-cylinder petrol engine and a continuously variable transmission driving the front wheels, as well as LED daytime lamps, a part-leather interior, push-button start and smart key, climate control air conditioning, 16-inch alloys and a 7.0-inch touchscreen multimedia system with sat nav and Bluetooth phone and audio streaming.
It also has a leather-bound steering wheel and gear shifter, and map pockets on both seat backs.
It does miss out on a lot of other stuff, though, including Apple CarPlay and Android Auto capability, automatic lights (remember when a car last beeped at you to turn off the lights? Me neither...) and automatic wipers, and it also misses out on driver aids like auto emergency braking (AEB).
It starts to look a bit dear when you look at similarly priced cars - even from the next size sector up - that do offer inclusions like AEB and automatic headlights, though the small sedan is a bit of a rarity in the Aussie market now.
Its only like-for-like rivals in the space are the Mazda2 sedan and the Hyundai Accent sedan. Other potential competitors like the Ford Fiesta sedan and, more recently, the Toyota Yaris sedan have been deleted from local line-ups after years of declining sales, while the subsequent rise of the compact SUV will continue to have an impact on the so-called 'light car' market.
MG made its reputation in Australia by selling some of the most-affordable models on the market, filling the hole left by mainstream brands like Toyota, Hyundai and Mazda as they increased the entry-level prices in their respective line-ups. Something MG itself tried with the HS, QS and U9, as it expanded beyond the once-popular MG3, MG5 and ZS.
The MG4 Urban is a return to form in that sense for MG, with this new small car starting at just $31,990 drive-away. For context, the MG4 Hatch starts at $37,990 drive-away, so this is a much cheaper proposition. That starting price is for the MG4 Urban Standard Range, the Extended Range variant is priced from $34,990 drive-away.
That pricing does not feel accidental from MG Australia, despite what they may suggest when pressed. That’s because the new BYD Atto 2, the direct rival to the Urban, starts at $31,990 plus on-road costs. Even so, BYD has the last laugh, because it offers both the BYD Atto 1, which starts at $23,990, and the Dolphin, which is priced from $29,990 - to undercut the MG4 Urban, even if neither are considered direct competitors.
In terms of specification, both the Standard Range and Extended Range have the same equipment with the exception of the obvious - a bigger battery, and more power from the motor.
Standard equipment highlights include 17-inch alloy wheels, LED headlights and tail-lights, a leather-wrapped steering wheel, PVC seat upholstery, heated front seats, Bluetooth connectivity with wireless Apple CarPlay and Android Auto, in-built navigation and a six-speaker stereo.
The i-VTEC four-cylinder 1.5-litre single cam engine is naturally aspirated, and it makes its 88kW at a high 6600rpm, while its modest 145Nm of torque peaks at 4600rpm.
It means the CVT gearbox needs to work pretty hard to get the best from the engine, which has been superseded by a twin-cam version in other markets.
The MG4 Urban Standard Range is powered by a 110kW/250Nm electric motor that drives the front-wheels via a single-speed transmission. The Extended Range has slightly more performance, 118kW and 250Nm, but aside from that they are the same motor.
The underdone performance does offer a benefit at the petrol pump, with the City returning a claimed 5.9 litres per 100km on the combined fuel economy cycle.
A 320km test loop netted us a dash-indicated figure of 6.3 litres per 100km, which is impressively close.
The 40-litre fuel tank is happy to accept standard unleaded petrol, too.
The biggest difference between the two MG4 Urban variants is the battery. The Standard Range has a 43kWh battery good for 316km of driving between charging, while the Extended Range gets a bigger 54kWh battery to make it capable of up to 405km.
We didn’t drive the car long enough to get a clear indication of real-world efficiency and range, but it performed well during our drive in suburban Sydney. The steady stop-start traffic gave the battery its best chance to perform well and the early indications are its range is close to claim, at least under the right circumstances. We’ll have to reserve definitive judgement until we’ve had a longer test drive.
What MG was very keen to highlight are the cost savings of buying an EV at a time of sky-high petrol prices. The company made a point that using off-peak electricity, which can be had for just 6c per kW from certain providers, means you can replenish the battery of the MG4 Urban Standard for just $3.44.
Weighing just 1100kg, you’d expect the 1.5-litre powered City to have a bit of get up and go… but unfortunately it’s already gotten up and left by the time you drive off.
The 1.5-litre naturally aspirated engine is a carryover unit from the previous generation, and it feels like it, too. It’s also teamed with a CVT gearbox that isn’t a patch on more up-to-date trannies from the likes of Subaru and Toyota.
On any sort of incline, the CVT ups the revs of the engine to a point between bloody annoying and mildly painful, too. The VTi can be ordered with a manual gearbox, which has to be better than the CVT in this example.
The underdamped suspension tune is adequate for light duties around town, but the electric steering feel very odd underhand, especially at the very beginning of a turn.
There’s a big initial motion at the front wheels when you start to turn which then quickly tapers off, meaning that you have to be ultra precise with your steering to prevent the City from lurching into the corner and falling over its soft suspension.
On light throttle, with no hills and few corners, though, the City is just fine…
What really stood out about the MG4 Hatch is its rear-motor, rear-wheel-drive layout, which made it a very dynamic and almost sporty car. In my 2023 review I called it “a genuinely enjoyable small car to drive".
The MG4 Urban doesn’t quite leave the same impression. Again, we had only a brief and (appropriately) urban test drive around Sydney’s beachside suburbs, but the MG4 Urban proved competent rather than commendable.
But, let’s be honest, unless you’re looking for driving thrills in the wrong place (affordable, city-focused hatchbacks) the MG4 Urban does the job it is required to do. It’s as nice as any other mainstream hatch to drive from Point A to Point B.
The ride could be a little softer and more compliant, with the suspension feeling too firm at times, but with its electric motor it’s a quiet and relaxed driving experience. The electric motor provides adequate performance too, certainly more torque in less time than you’ll get in a petrol-powered hatch.
Curiously, MG Australia executives said the MG4 Urban was locally evaluated and tuned but could only offer a vague mention of ‘holistic’ changes to better suit it to local conditions, rather than pointing to any specific Australia-developed changes to the suspension, steering or powertrain.
As mentioned, the City misses out on AEB and other driver aids, but does offer emergency brake assist and emergency flashing brake lights, as well as hill-start assist.
Full-length curtain airbags are offered along with dual front and front side 'bags, and there's a reversing camera. The City holds a maximum five-star ANCAP rating, which it has had since it was tested back in 2014.
It may be small and cheap, but that doesn’t mean MG has cut corners on safety. The MG4 Urban comes equipped with the MG Pilot and a suite of active safety features, including adaptive cruise control, autonomous emergency braking, lane keep assist, blind spot monitoring, driver attention monitoring and speed limit notification.
The latter two are the most evident, as they provide a steady soundtrack of beeps as you drive along. Take your eyes off the road for more than a few seconds as the driver attention system fires up, while the speed sign recognition gets busy in Australia’s ever-changing speed limits.
While MG has undoubtedly improved the sensitivity of some of these systems compared to other models, they are still more active than rival products. Perhaps more concerning, the speed limit recognition repeatedly beeped to tell me I was in a ‘25km/h’ zone, which is simply not a recognised speed limit on Sydney roads.
Like so many other brands, MG needs to further refine these active safety systems in order to make the driving experience more relaxed and less distracting.
MG says the MG4 Urban has secured a five-star rating from Euro NCAP, which is expected to be carried over by ANCAP.
Honda sells the City with a five-year, unlimited kilometre warranty, while a no-catch seven-year, unlimited kilometre warranty is occasionally offered with its cars, along with premium roadside assistance for the life of the longer warranty.
Both warranties are also transferable to the next owner, should you sell your car before the warranty expires.
A fixed-price servicing regime is in place for the City, too, starting at $259 and peaking at $297. But Honda asks for the City to be serviced every six months or 10,000km, which does add to the cost of running the car.
The MG4 Urban is covered by the brand’s 10-year/250,000km warranty, as long as you service it at an official MG service centre. If you don’t get your car serviced with the company directly, your warranty reverts to seven-year/unlimited km coverage.
Servicing intervals are every 12 months or 25,000km and will cost you $1366 over the first five years. The cheapest visit is just $149 but the major service, after four years, is a pricey $472, which does push against the idea that EVs are cheaper to service due to less moving parts.