MG MG3 News

$19,990 drive-away is back! The sub-$20,000 barrier has been breached by a popular new model in Australia, bucking a long-term trend of continuous price hikes.More importantly, and in a first since the Suzuki Swift jumped well beyond $21,000 at the beginning of this decade, the car in question is not based on an older or outmoded design nearing the end of its lifecycle, but something released relatively recently as an all-new proposition.That model, inevitably, is the latest iteration of the second-generation MG3, which has already seen a couple of price cuts since the entry-level Vibe CVT automatic grade arrived in Australia during the second half of last year.Initially set at $21,990 drive-away, it dropped by $1000 last month, but is now retailing at $19,990 drive-away until the end of March.However, this latest price is conditional, since it comes with the proviso that is highly unusual at a national retail level - that a member of the buyer’s family must be, or have been, an owner of an MG vehicle.Snappily branded as the “MG Family $1,000 Off” campaign, an MG dealer told CarsGuide that it “includes existing and previous owners and their immediate families, taking in spouses, children (including step/adopted ones) and parents.”Whether previous family ownership extends to the pre-Chinese ownership era of MG Rover models from before 2005, like the ZT, ZS and ZR, as well as the TF and MGF roadsters of the ‘90s, could not be confirmed.In some cases, proof may also be required before the $19,990 drive-away price can be applied at the point of sale – otherwise the Vibe CVT grade returns to the standard $20,990 drive-away.Furthermore, the sub-$20K pricing applies only to new (so not demonstrator) MY25.5 MG3s (so already built and presumably landed in Australia), and in white or black and with a black interior, and while stocks last. They must be sold and delivered to the customer by March 31, 2026, and excludes fleet, government and rental buyers.The real significance of this is the fact that, unlike the previous first-generation MG3 that first entered production all the way back in 2011, the newer (ZP22) version only dates back to 2024.This means it has significantly more safety features, including autonomous emergency braking (AEB) and some advanced driver-assist system (ADAS) technologies.As we said earlier, this hasn’t been the case since the contemporary Swift jumped in price during 2021.And while the MG3 currently has a four-star crash-test rating with ANCAP, its nearest competitor on price, the one-segment-size-down Kia Picanto, remains untested.Note, too, that, even at $20,990 drive-away, the MG3 Vibe CVT is by some margin currently the cheapest new vehicle in Australia, undercutting the base Picanto Sport manual at $22,140 drive-away by over $1100, and $2250 for the auto version that is the more-appropriate point of comparison.Well specified, the Vibe CVT is powered by an 81kW/142Nm 1.5-litre four-cylinder petrol engine, driving the front wheels via a CVT continuously variable transmission.Standard features include 15-inch steel wheels, cloth upholstery, a reversing camera, a 10.25-inch touchscreen display, Apple CarPlay/Android Auto connectivity, adaptive cruise control, AEB, blind spot monitoring, lane departure warning/assist, rear cross-traffic alert, speed sign recognition and a seven-year/unlimited kilometre warranty (like Kia’s), but increased to a 10-year/250,000km conditional guarantee of serviced at an MG dealer.

These are the most affordable new hatchbacks in Australia.

For the past two years Chinese car brands seemed to be in the fast lane to sales success — but it looks like at least one brand has hit the brakes.The latest new car sales data, released for January, shows further decline for MG to start 2026 after suffering a significant 18.4 per cent sales drop in 2025. The formerly British brand still held onto its place in the top 10, but will need a quick turnaround to maintain that as the year progresses.Business Director for MG Motor Australia Kevin Gannon said: "A challenging market across the industry makes our upward movement in ranking hard fought. January results reflect how MG Motor is entering 2026 with a great expanded product line up suited to local needs, we've been here for 10 years, we're planning for the next 10 years and more, and that we're fully committed to being the brand of choice of Australian drivers this year."The 2025 result was particularly notable given the brand’s aggressive product expansion last year, with the new-generation HS and MG3 as well as the all-new QS and S5 SUVs plus the much-hyped U9 ute. On top of this, there was the launch of the IM Motors sub-brand, which adds its sales to MG’s total.Former MG Australia boss Peter Ciao, had high expectations, telling CarsGuide in April last year that he was anticipating around 60,000 sales thanks to the expanded line-up. In the end the brand finished with 41,298.The January results show major year-on-year declines for the MG3 (down 38.6%), MG4 (down 63.9%) and MG5 (down 91.4%). The good news for the brand is both the HS (up 38.5%) and ZS (up 4.5%) remain popular with buyers.However, the problem for the brand appears to be the acceptance of its new models. The QS in particular has struggled to make a major impact in the large SUV segment, finishing 2025 with just 1023 sales, compared to the most popular model in the class, the Ford Everest, which sold more than 26,000 units.The U9 also failed to make a major difference to MG’s Australian hopes, despite getting to market quickly and with a competitive price. It averaged just 157 sales per month after going on sale in October, well below the most popular models in the segment.Ciao’s aspirations of MG becoming a top three brand in the country appear to be on the backburner for now, with new management set to be installed following this sales slide.MG parent company, SAIC Motor International (SMIL), announced in early January that Quing Zhang, currently the Vice President of SMIL will add CEO of MG Australia and New Zealand to his responsibilities, replacing Ciao. He will not be based at the company’s Sydney office however, instead Felix Jiang has been appointed as Senior Vice President for Australia and New Zealand and will be based here to lead the day-to-day operations.“SAIC Motor has established an excellent footing in the ANZ market over the past decade, and we now look forward with great excitement to fuelling our next phase of growth by introducing innovative products that deeply resonate with and meet local demands,” Zhang said at the time of his appointment.A leadership change is typical when a brand fails to reach its sales targets, and doesn’t negate the work that Ciao did in the eight years he led the local operation. But it is clear that MG is headed in the wrong direction on the sales charts so something needed to change.Whether or not the brand can recover in time, or will now have to play a supporting role behind the more popular Chinese brands — BYD, GWM and Chery — remains to be seen.

Only a few years ago a budget-focused new car story like this would have well and truly dipped under the magical $20,000 threshold.But, the sad news is there’s just a single new car option left standing in the Aussie market wearing a five figure price tag that starts with a one.And that’s the entry-grade Kia Picanto Sport with a five-speed manual gearbox at $19,190, before on-road costs. Tick the box for the four-speed automatic transmission and all of a sudden you’re at $20,790, BOC.So, we’ve raised the new car budget bar to $25,000 and looked at the five most popular models with an entry-price under $25K from 2025 full-year sales.1) Chery Tiggo 4 Pro - From $23,990, before on-road costsTalk about an impressive entrance. Chery lobbed a hand grenade into the budget end of the small SUV segment in late 2024, with the Tiggo 4 Pro’s first full year sales exceeding 20,000 units in 2025.Two versions of the compact five-seater are offered locally, the Urban and Ultimate, each available in pure-combustion and petrol-electric hybrid form.2) MG MG3 - From $21,990, drive-awayWith competition from new challenger brands intensifying and the MG model line-up growing, the MG3 dipped in terms of year-on-year sales but still did enough to grab second spot under $25K with more than 8000 examples finding a new home.Three grades are offered here - Vibe, Excite & Essence - pure-petrol in all three with the option of hybrid in the upper two.  3) Hyundai Venue - From 23,000, before on-road costsNow a veteran of the ‘light’ SUV category the city-sized Venue remains a strong seller in Hyundai’s small car portfolio.In fact, sales were up a solid 14.1 per cent in 2025 to 7927. The range starts with the entry-grade at $23K, before on-road costs, with the Active and Elite above it. 4) Kia Picanto - From $19,190, before on-road costsA popular choice among city dwellers, the diminutive Picanto also ticked up in total year-on-year sales for 2025 to 7166.Sadly for micro car Verstappen wannabes the 1.0L turbo GT is a thing of the past, but the top-tier GT-Line Picanto brings some of its racy personality to the party. 5) Suzuki Swift Hybrid - From 24,490, drive-awayThe fourth-generation Swift has taken mild-hybrid form with its 1.2-litre three-cylinder engine featuring an enhanced starter/generator/electric motor picking up some of the slack in terms of powering the stop-start system and adding 60Nm of torque.Sales were down in 2025 to 3446, but there were still enough buyers to land the latest version of the city car icon in fifth spot.   Australian Top 5 sellers under $25,000:  

Sales of light passenger cars in Australia have slowly been dipping further and further over the years but an unlikely new entrant may turn this around.Last year China’s BYD announced the pricing for its new entry-level Atto 1 electric hatchback. With a mind-blowing starting price of $23,990 before on-roads, it’s the cheapest new electric vehicle (EV) in Australia by a strong margin.The BYD Atto 1, despite being an EV, undercuts many similarly sized petrol hatchbacks in terms of entry asking price. Examples include the Mazda 2, MG3, Suzuki Swift and Toyota Yaris.One of the few cars that undercuts the Atto 1’s competitive starting price is the Kia Picanto, which is still Australia’s cheapest new car. It starts from $19,190 before on-road costs.During 2025 a total of 7166 examples of the Picanto were sold, which is up 23.1 per cent year-on-year.Despite being the cheapest new vehicle in Australia, it’s not the best-selling light passenger car. This crown goes to the MG3, which currently starts from $21,888 drive-away. A total of 8350 examples were sold last year, though this is technically down 33.5 per cent year-on-year.There are clearly still many Australians looking at the budget end of the new car market to make a purchase, especially as cost of living crunches.Many carmakers are now finding it hard to sell such a car profitably while still packaging all the required safety equipment and meeting tightening emission standards.This is where EVs like the BYD Atto 1 could thrive as they don’t emit any CO2 tailpipe emissions.In terms of other small-to-light EV hatchbacks that are due to launch locally over the next 12 months or so, MG has confirmed it’s introducing its new, city-focused MG4 Urban, plus Leapmotor is launching the B05 electric hatchback in the second half of 2026.Many Australians now prefer SUVs over small hatchbacks and sedans.SUV sales in Australia have been going from strength to strength for years now and there are plenty of budget offerings that in some cases are cheaper than hatchbacks and offer more space.Examples include the Chery Tiggo 4, GWM Haval Jolion and Mahindra XUV3XO which all start at $23,990 drive-away.Around the same time BYD announced the Atto 1 electric hatchback for Australia, it also confirmed it’s introducing the Atto 2 small electric SUV locally.It’s priced from $31,990 before on-road costs, which makes it Australia’s cheapest electric SUV though it’s still $8000 more than the overall cheapest SUV.There are plenty of other budget-oriented electric SUVs available including the Hyundai Inster which currently starts at $35,990 drive-away thanks to an offer, as well as the Chery E5 and Leapmotor B10 which both currently start at $38,990 drive-away.

Massive MG safety recall.

MG looks into safety issues with its popular MG3 hatchback, as updates still fall short of maximum five-star rating.

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

A new electric car from MG has been revealed via a Chinese government regulator, but just what the car is could be up for debate.

Many so-called “all-new” models aren’t all that new. In fact, a sizeable chunk are reskinned versions of what came before, with fresh sheetmetal over the same general hard points.