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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.