MG MG3 vs MG MG4

What's the difference?

A number of established small cars are becoming more expensive and less popular. The Toyota Yaris, Mazda2 and Suzuki Swift were once the go-to first car, but now start at around $25,000.

This repositioning was great for MG and its sub-$20,000 MG3, which has spent much of the last few years as Australia's most popular light car. It’s hard to deny a low price will open many wallets.

But now in its new generation, the MG3 is thousands of dollars more expensive than before, starting in the mid-$20K range and headed even further up with a new hybrid drivetrain option. We jump in the base petrol Excite to find out if the value is still there for this British-branded, Chinese-built hatchback.

MG has been one of the fastest growing brands in the Australian market in the past five years, carving a spot for itself amongst the best-selling names.

But now it’s about to take on arguably its toughest challenge yet - selling a performance car.

MG’s success until now has been built largely on value, with its affordable MG3 and ZS SUV leading the way. The arrival of the all-new, all-electric MG4 XPower means the brand will try its luck at selling cars based on performance, dynamics and an emotional connection.

It’s not the first electric hot hatch in Australia, that distinction arguably belongs to the Cupra Born. But, MG has achieved much higher sales locally than Cupra, making it the first electric hot hatch from a mainstream brand, and that’s why it has the potential to be a game changer for the market.

If the XPower succeeds it will likely reshape the hot hatch market, which until now has been dominated by long-time players and big-name brands, including the Honda Civic Type R, Hyundai i30 N, Toyota GR Corolla and Volkswagen Golf R.