McLaren 540C vs MG MG4 Urban

What's the difference?

The 540C is desirable on so many levels. Its dynamic ability, blistering performance, and stunning design make the cost of entry a value-for-money ticket. And the refreshing thing is, choosing a McLaren, with its focus on function and pure engineering, sidesteps the wankery that so often goes with ownership of an 'established' exotic brand. We absolutely love it.

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.

In 2010 the recent rise (and rise) of McLaren Automotive really began, when its design director, the hugely respected Frank Stephenson, started to send things in a compelling direction.

He says McLarens are 'designed by air' and that intricately sculpted, wind-tunnel-driven approach to supercar beauty is clear in the 540C's shape.

It's aimed at so-called everyday supercars like the Audi R8, and Porsche 911 Turbo, yet it incorporates all the subtle aero tricks that define the brand's dynamic personality.

A serious front spoiler and a mix of large intakes low in the nose create a delicate balance between downforce and corridors for cooling air.

The dihedral design doors swinging up to their fully open position is a camera phone attracting, jaw dropping, traffic-stopper.

Broad strakes down the side, standing proud of the main bodywork, are reminiscent of a formula one car's turbulence reducing barge boards, and giant intake ducts channel air through to the radiators in the cleanest, most efficient way possible.

And the look is suitably spectacular. You could hang the dramatically carved doors in a contemporary art museum.

Barely noticeable flying buttresses extending from the rear of the main roofline make a big contribution to downforce, cooling and stability with a minimal drag penalty.

There's a delicate lip spoiler on the trailing edge of the main deck, and a giant multi-channel diffuser proves air flow under the car is just as carefully managed as that going over it.

But the 540C doesn't lack traditional supercar drama. The dihedral design doors swinging up to their fully open position is a camera phone attracting, jaw dropping, traffic-stopper.

The interior is simple, striking and single-mindedly driver-focused. The chunky wheel is completely unadorned, the digital instruments are crystal clear, and the seats are the perfect combination of support and comfort.

The vertical 7.0-inch 'IRIS' touchscreen is cool to the point of minimalism, managing everything from audio and nav, to media streaming and air-con, with low-key efficiency.

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.

There are some cursory concessions to practicality… like a glovebox, a single cupholder under the dash at the leading edge of the centre console, a small bin between the seats, housing multiple USB outlets, and other storage options here and there.

The latter includes a shelf at the top of the bulkhead behind the seats, marked with a specific label saying (words to the effect of) 'don't put stuff here', but that's more about objects flying forward in a high-G deceleration, which in this car is more likely to be the result of hitting the brakes, rather than a crash.

But the 'big' surprise is the 144-litre boot in the nose, complete with light and 12 volt power outlet. It easily swallowed the CarsGuide medium sized, 68-litre hard shell suitcase.

In terms of getting in and out, make sure you've done you warm-ups because frankly it's an athletic challenge to maintain composure and get the job done either way. Despite best efforts, I hit my head a couple of times, and aside from the pain it's worth pointing out that being a follicularly-challenged person I'm forced to display abrasions in full public view.

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.

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.

Aside from you and a passenger, the most important thing sitting between the 540C's axles is the 3.8-litre (M838TE) twin-turbo V8.

Developed in collaboration with British high-tech engineering specialist, Ricardo, McLaren's used it in various states of tune across different models, including the P1, and even in this 'entry-level' spec it produces enough power to light up a small town.

In 540C trim, the all-alloy unit delivers 397kW (540 metric horsepower, hence the model designation) at 7500rpm, and 540Nm from 3500-6500rpm. It uses race-derived dry sump lubrication, and a compact flat plane crank design, favoured by Ferrari and others in high-performance engines.

While vibration damping can be an issue with this configuration, it allows a much higher rev ceiling relative to the more common cross plane arrangement, and this engine screams up to 8500rpm, a stratospheric number for a road-going turbo.

The seven-speed 'Seamless-Shift' dual-clutch transmission sends drive exclusively to the rear wheels and comes from Italian gearbox gurus Oerlikon Graziano. It's been progressively refined and upgraded since its first appearance in the MP4-12C in 2011.

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.

McLaren claims 10.7L/100km for the combined (urban/extra urban) fuel economy cycle, emitting 249g/km of CO2 at the same time.

For the record, that's six per cent better than the Ferrari 488 GTB (11.4L/100km – 260g/km), and if you take it easy on a constant freeway cruise, you can lower it even further.

But most of the time, we, ahem, didn't do better than that, averaging 14.5L/100km via the trip computer in just over 300km of city, suburban and freeway running.

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. 

The best word to describe driving this McLaren is orchestration. The 540C's dynamic elements flow seamlessly together to transform its operator into a conductor guiding a well-honed mechanical orchestra through an energetic concerto.

And slipping (carefully) over the carpeted bulkhead into the driver's seat is like dropping into an ergonomic masterclass. It feels like you're putting the car on, rather than getting into it.

Like all other current McLarens, the 540C is constructed around a one-piece, carbon-fibre tub, which it calls MonoCell II. It's super stiff, and just as importantly, light.

McLaren quotes a dry weight (no fuel, lubricants, or coolant) for the 540C of 1311kg, with the kerb weight a stated 1525kg (including a 75kg passenger). Not featherweight, but with this kind of power sitting a few centimetres behind your head, it's not a lot.

The engine sounds brilliantly guttural, with lots of exhaust roar managing to find a way past the turbos.

A sophisticated launch control system means zero to licence loss is achieved in a flash (0-100km/h – 3.5sec), with jail time lurking if you ever decide to explore the 540C's 320km/h maximum velocity. And in case you're wondering, it'll blast from 0-200km/h, in just 10.5sec.

The engine sounds brilliantly guttural, with lots of exhaust roar managing to find a way past the turbos. Maximum torque is available across a flat plateau from 3500-6500rpm, and mid-range punch is strong. However, the 540C is anything but a one-trick pony, or is that 540 ponies?

The double wishbone suspension, complete with the adaptive 'Active Dynamics Control' system lets you channel all that forward thrust into huge cornering speed.

The switch from Normal, through Sport to Track progressively buttons everything down harder, and an ideal weight distribution (42f/58r) delivers fantastic agility.

Feel from the electro-hydraulic steering is amazing, the fat Pirelli P Zero rubber (225/35 x 19 front / 285/35 x 20 rear), developed specifically for this car, grips like a Mr T handshake, and the standard 'Brake Steer' torque vectoring system, which applies braking force to optimise drive and minimise understeer, is undetectable in the best possible way.

A console switchable 'Powertrain Control System' also offers three settings, and in the upper modes, shifts from the seven speed dual clutch 'box are eye-blink rapid.

The steering wheel paddles come in the form of a genuine rocker, so you're able to change up and down ratios on either side of the wheel, or one-handed.

You'll love catching a glimpse of the heat haze shimmering up off the engine in the rear-view mirror at the lights.

Hammer towards a quick corner and the reassuringly progressive steel rotor brakes bleed off speed with complete authority. Flick down a couple of gears, then turn in and the front end sweeps towards the apex without a hint of drama. Squeeze in the power and the fat rear rubber keeps the car planted, and perfectly neutral mid-corner. Then pin the throttle and the 540C rockets towards the next bend… which can't come quickly enough. Repeat, and enjoy.

But slotting everything into 'Normal' mode transforms this dramatic wedge into a compliant daily driver. Smooth throttle response, surprisingly good vision and excellent ride comfort make the McLaren a pleasure to steer around town.

You'll love catching a glimpse of the heat haze shimmering up off the engine in the rear-view mirror at the lights, and the (optional) nose-lift system makes traversing awkward driveways and speed bumps manageable.

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.

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. 

McLaren offers a three year/unlimited km warranty on the 540C, and servicing is recommended every 15,000 km or two years, whichever comes first. No capped price servicing program is offered.

That's a lot of kays for a premium exotic like this, and some may not see 15,000km on the odometer… ever.

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.