MG relaunch imminent

China's largest car-maker will launch its first direct assault on the Australian market in two months with the introduction of the MG3 and MG6 small cars, followed in October by the MG GS SUV.

The MG GS is currently undergoing hot weather durability testing Down Under, and the first shipment of 50 Australian-spec MG3s and MG6s is now in production before going on sale here from May.

Motoring.com.au understands MG Australia – the first local subsidiary of the Chinese government-owned, Shanghai-based SAIC Motor – is currently finalising a national retail network for the former British brand here as part of a five-year global export strategy.

The light-size MG3 hatch, which will compete with pint-size five-doors like the Toyota Yaris and Mazda2, was launched in the UK three years ago and will be powered by a 78kW 1.5-litre petrol engine matched to a five-speed manual transmission.

While it will be available in Australia for the first time, the small MG6 sedan and hatch was launched unsuccessfully here in 2013 by independent, Sydney-based importer Longwell Motor, which failed to establish a national dealer network and still has almost 400 cars on grass.

Both models were originally due here in March, but SAIC's plans to relaunch the MG brand here were delayed by seven to eight months due to legal proceedings between the car maker and its previous local distributor, which relinquished its rights on January 1.

This time the MG6 will be sold here in facelifted, five-door hatch form, powered by a 118kW 1.8-litre petrol engine matched to a six-speed automatic transmission.

MG has said pricing for both its launch models will be competitive, meaning price tags of around $15,000 for the MG3 and $20,000 for the MG6.

The MG GS will be priced from about $22,990 and available in two specifications – a 125kW/250Nm 1.5-litre turbo-petrol front-drive entry-level model with seven-speed dual-clutch auto and a 162kW/350Nm 2.0-litre turbo-petrol all-wheel drive with six-speed DCT.

The MG5 hatch, which would slot in between the MG3 and MG6 in terms of both size and price, is under consideration for Australian release in 2017.

As we reported in November, Australia will be among the first and most important western markets for SAIC, which has a five-year plan to establish the MG brand globally with a full line-up of passenger vehicles and SUVs.

SAIC is China’s biggest car manufacturer by sales and market capitalisation and the ninth biggest automotive group in the world, building 5.62 million cars in 2014. It is also ranks 60th on the Fortune Global 500 list.

SAIC has joint ventures with General Motors and Volkswagen in China, and also develops and sells its own MG (formerly Morris Garages) and Roewe (formerly Rover) passenger cars and Maxus commercial vehicles, which are already sold in Australia via private importer Ateco Automotive under the LDV brand.

SAIC Motor took control of MG in 2007, when it merged with Nanjing Auto, which had bought the bankrupt British business in 2005. Roewe has been built from the remains of the bankrupt Rover business acquired by SAIC in 2005.

Roewe is SAIC's domestic brand, while MG will become its global brand and retains design and engineering facilities at its traditional Longbridge base in the UK as well as in Shanghai.

SAIC has a new factory in Thailand, where it plans to eventually build all right-hand drive vehicles, and has also formed a joint venture to build a factory and supply park in Indonesia.

MG will be the second brand after Great Wall Motors' premium SUV brand Haval to establish a factory-owned Australian subsidiary.