MG expands Aussie dealer network

MG Motor has announced the opening of seven new dealerships in the Australian, taking its local footprint to 32.

The new dealers have opened on the Gold Coast and in Cairns, Townsville, Hervey Bay, Cranbourne, Ryde and Newcastle.

"MG Motor Australia has evolved from market entry challenger to a compelling, value-oriented brand, which is proven by our rapid dealership expansion and vast sales growth," said Danny Lenartic, Marketing Director for MG Motor Australia.

"We’re looking forward to an exciting year ahead, kicking off with confirmation of seven strategic new dealerships, and strong sales results which see us up 581 per cent, year-to-date."

It's not unusual for a new brand to see exponential sales growth in its first year or two selling cars in the local market, but after a year or so the pent-up demand flattens out and moving the sales base to the next level is tougher. That doesn't seem to be the case with MG, however.

Since its first sales in February of 2017, the Chinese-owned brand with the sports-car heritage has gone from selling 600 vehicles for the 11 months of 2017 to over 3000 units in 2018, according to VFACTS.

For the year to date, up to the end of March 2019, MG has already sold over 1700 vehicles. If that sort of sales rate continues, the brand would be on track to sell nearly 7000 vehicles by the end of 2019, only its second full year in the Australian market.

To put that in perspective, Skoda had to wait a decade before it notched up 5000 sales after its relaunch here in 2007. The secret to MG's rapid rise appears to be a mix of strong advertising, appealing designs, affordable pricing and a seven-year warranty.

All of this has been accomplished with a range comprising hatchbacks and soft-road SUVs. Unlike the MG brand known to older Australians there's not a sports car in the range, although the company has plans in place to launch an electric sports car in global markets next year.

MG's rebirth in Australia has been underscored not only by escalating sales, but also by a dealer network on growth hormones. As recently as August last year two more dealers had signed up for MG, taking the network to 18 dealerships.

And the new dealers have been around the traps, and appear comfortable taking on a brand like MG in their PMA (prime marketing area).

"We’re excited to partner with such an iconic brand to sell and service MG vehicles in Cranbourne, Dandenong and the surrounding South East suburbs of Melbourne," said Shane Lennon, Dealer Principal for Cranbourne MG.

"We’ve been operating in the local area since 1965, giving us a vast knowledge of the industry and what our customers want. The range of MG vehicles are now on display in our showroom and they are attracting a great deal of interest from our customers and the wider community."