Is this the end of the road for the 'cheap' car? MG set to reposition itself away from its cut-price roots and go directly at Toyota, Hyundai and Mazda customers
By Stephen Ottley · 23 Nov 2024
Nobody likes being called cheap, even when it’s meant as a compliment.MG has been one of the fastest growing brands in Australia over the past decade, built predominantly off the back of its most affordable models, which undercut their more established rivals from Toyota, Hyundai and Kia. The brand is in the midst of a massive product offensive, which will include at least eight new options for Australian buyers by the end 2025, and it is starting to move itself away from its ‘cheap’ image.MG wants to become known for offering ‘value’ propositions, which has already begun with its new-generation MG3 and HS SUV and continued recently with the launch of its new ZS.The ZS is the brand’s best-seller, but rather than leading with its cheapest models it has decided to launch with its new ZS Hybrid+ variant. It starts at $33,990, well above the out-going, petrol-powered ZS, which was just $22,990 for the cheapest option.MG Motor Australia chief commercial officer, Giles Belcher, is confident the brand won’t take a backwards step, sales-wise, and is confident customers will be won over by the improved quality of the MG products.“Well, the quality and the technology in the cars is generationally different to the vehicles that they're replacing,” Belcher said.“With that there is an increase in the price but it's still the best value and that's where the value idea comes from. In each segment we still want to represent the best value car in that segment.“Now you know value means different things to different people, but if you have a look at the pricing of the MG3, the ZS hybrid, what you get in the car and the price it is, it just represents, we believe, the best value in the segment. And that's kind of Peter vision for every segment we compete in is to offer the best value car. And that's not just price now, it's the technology, the performance, the quality, the fit and finish, you know, the whole package. That's where we believe the product sits. And we believe once people experience it they'll agree.” Belcher also pushed back on the notion that buyers were focused on only MG’s cheapest model grades, claiming the brand has had good sales success with its more expensive variants.“I probably can't give you exact percentages, but we've always had a healthy mix of high grade vehicles in every particular model,” he said.Despite this shift and the potential to price some buyers out of the MG range, Belcher said he was confident the Chinese brand will continue to grow its sales in Australia in 2025. “Look, at the end of the day, the market decides and the consumers decide. We believe that the range we'll put forward will be successful; as probably everyone does when they launch a new car,” he explained. “But we firmly believe that it'll be successful. And again, it's about the education and the experience that people have when they first step into the car or sit in the car. Proof of the pudding will be, you know, in the 12 and 18 months time as to how successful we've been in that education.”The brand’s sales are likely to be helped by the arrival of the rest of the ZS SUV range, which will include more affordable petrol models. MG Australia’s head of local product, Akshat Ahuja, wouldn’t confirm if the brand will be able to bring in a variant below $25,000, as it currently has, but said the company would make sure it has cheaper models.“From a product point of view of course the cars are getting expensive and all that, and as Giles said, all our new upcoming cars, they are way more advanced, the fit and finish, the technology and everything,” Ahuja said. “But when we look at the particular model, the variant line-up, we always try to aim for the entry cars as well, the price point cars that also provide good value. So you might see ZS, like what we have seen today, $36,990, but we'll also have petrol ZS that will sort of be around that price point. And we'll attract the buyers who would be wanting a price point car.”