Chinese Corolla rival gets green light for Australia

MG’s all-new MG5 small car will be built from the Chinese company’s factory in Thailand as MG Australia looks for easier access to future right-hand drive models.

The stylish Corolla-sized MG5 is confirmed for Australia but, as yet, there is no final timing or a price point for the car.

That said, the MG5 is expected to launch in 2021 and, in line with other MG models, should undercut its major rivals such as the Toyota Corolla (from $23,895) and Kia Cerato (from $21,490), potentially bringing a $19,990 proposition back into play in the popular small car segment.

“Everything is already agreed in principle. (But) it is still under process, under evaluation,” the managing director of MG Australia, Peter Ciao, told carsales.

“With MG5 we have a plan to import from Thailand. Right-hand drive.”

The MG5 is available with two body styles and both internal-combustion and electrified powertrains, with a battery-electric wagon leading the MG5 in Britain.

But the focus for Australia is on the petrol-powered liftback sedan that was unveiled in China in September.

“It will be petrol model. No wagon, just the sedan,” said Ciao.

The Australian-spec MG5 is expected to be the first export program out of Thailand for MG parent SAIC Motor, with the giant Chinese auto conglomerate using its factory in the Chon Buri province that was built to concentrate on right-hand drive production.

It is the second SAIC assembly plant in Thailand.

“Part of our global strategy is manufacturing in Thailand, and India as well. Thailand makes sense because they are right-hand drive off-the-bat,” said MG Australia’s director of marketing and product development, Danny Lenartic.

“Basically it is a domestic factory with an export potential. It could be the first export project from the factory.

“But we are still waiting for the final sign-off.”

Ciao said there is no plan for an MG ute in Australia, with its LDV sister brand taking that side of the SAIC business (with the LDV T60), but he is looking at the iMax 8 people-mover which is currently available as a Roewe but could be re-badged as an MG.

“I want to, but I am waiting the right time,” he says.

While the MG5 plan is still being finalised, Ciao said sales of its existing models are booming and the company has this year already pushed well past last year’s record total of 8326 sales.

To the end of October, it has racked up 11,308 sales, and is now looking at 14,000-plus for the full year.

Ciao is now forecasting ongoing growth in 2021, helped by the arrival of the fully-electric MG ZS EV but with the compact MG3 city car still dominating sales thanks to its sub-$17,000 price-tag.

It also has a separate Corolla-sized electric car coming in the next couple of years.

“I think over 20,000 for MG is very easy,” Ciao told carsales.

“My goal is the best offer for the customer. MG gives the customer the best offer, not just for one model but for every model. Every model we keep the same strategy.”