MG ZS EV prices slashed

MG Motor Australia has slashed thousands of dollars off its MG ZS EV small electric SUV for the second time in four months, as competition heats up at the bottom end of Australia's electric car market.

There are no upgrades, but the MG ZS EV is now between $1000 and $6000 more affordable than it was in October, representing reductions of between 2.2 and 10.7 per cent.

Despite years of steep inflation and price rises across the industry, it makes MG's compact Chinese electric SUV the cheapest it’s been since going on sale here in 2020.

The entry-level ZS EV Excite starts from $40,990 plus on-road costs, representing a $2000 decrease.

The Essence is $1000 cheaper at $43,990 plus ORCs, while the Long Range receives a whopping $6000 reduction to $49,990 just seven months after it was added to the line-up in March with a larger battery pack that stretched the driving range from 320km to 440km, according to the WLTP cycle.

In a supplied statement an MG spokesperson said the price reductions came as a result of various factors, including negotiations with its Chinese parent company SAIC.

“MG continues to work with SAIC, our suppliers, dealer network and freight partners to reduce costs wherever possible,” the spokesperson said.

“We are committed to helping more Australians to make the switch to EV sooner than later. Whenever we are able to pass price reductions onto our customers, we will make sure we do.”

But the second ZS EV price reduction in four months also appears to be in reaction to market forces and slowing sales.

The ZS price reductions come as more affordable EVs surge onto the market, in turn reducing sales of MG’s compact electric SUV to a trickle.

Some of the fresh competition comes from within in the form of the MG4 hatchback, which has proved popular in its first few months on sale – comfortably outselling the ZS EV in the process.

Previously Australia’s cheapest EV, the ZS EV has also been attacked by the more convincing BYD Atto 3 electric SUV and sharply priced EV hatchback alternatives including the GWM Ora and BYD Dolphin, the latter now Australia’s cheapest EV.

All those newcomers – including the MG4 – are based on a bespoke EV architecture that allows the battery pack and electric motors to be ideally placed to maximise cabin space, whereas the MG ZS EV sits on the platform of an ICE vehicle, something that typically leads to compromises.

MG had previously stopped importing the most affordable ZS EV Excite variant to allow some breathing space for the MG4 at the entry point of the electric car market, but that has now been abandoned, with the entry model again the price leader and the two models tripping over each other around the $40K mark.

The MG4 starts at $38,990 for the entry-level Excite with a 51kWh battery and 350km of WLTP range. For another $6000 the MG4 Excite can be had with a larger 64kWh battery that stretches the driving range to 450km.