Pricier new MG3 to remain nation’s best-selling light car – for now

MG Motor Australia believes the new-generation MG3 will remain Australia’s top-selling light car, despite a base price increase of more than $5000 over its predecessor.

The new-generation Chinese hatchback lands in Australia this month armed with a fresh look, loads of new safety and technology, and the option of a hybrid powertrain for the first time.

But those changes haven’t come cheap, with the most affordable petrol-powered MG3 now priced from $23,990 plus on-road costs, while the dearest hybrid version costs $29,990 plus ORCs.

Significantly, that makes the new MG3 more expensive than new fourth-generation Suzuki Swift, which also arrives this month armed with its first mild-hybrid engine.

Speaking with carsales this month, MG Motor Australia chief executive Peter Ciao was steadfast in his belief the MG3 will continue to outsell its core rivals, headed by the new Swift, plus the Mazda2 and Toyota Yaris.

“MG in Australia really started from the MG3 and I hope this new generation continues our growth,” said Ciao.

“MG managed to get a significant share of the market, with many buyers being young ladies who had just got their licence and were purchasing their first car or were fortunate to have a parent purchase their first car.”

Asked specifically if the MG3 would continue to outsell its light-car competitors, Ciao was unequivocal.

His reasoning centred on the introduction of the MG3’s hybrid powertrain, which he said will “expand our target customer… to those looking at a second family car” courtesy of its miserly 4.3L/100km fuel consumption and 8.0sec 0-100km/h performance claim.

“I have huge confidence that we will continue our success in this segment,” Ciao said.

“Based on the new technology and best affordability, plus the best hybrid technology and the best price on hybrid, we 100 per cent trust we will continue our success in this segment.”

Helping the MG3 remain Australia’s favourite light car is the fact MG Motor Australia has enough stock of the outgoing MG3 to last until the end of the year.

First released in Australia in 2018 (the original MG3 was never sold here), the second-generation MG3 was the nation’s top-selling light-car for several years – with a dominant 43.3 per cent segment share in 2023 – thanks to bargain-basement prices.

But the more expensive new MG3 now leaves the Kia Picanto (from $17,890 plus ORCs) as the only sub-$20,000 new car remaining on sale in Australia, following the axing of the Kia Rio.

What’s more, it has now been pipped by the Swift on entry price, thanks to the Suzuki’s sharper drive-away offer of $24,490, no more to pay.

Nevertheless, with a base price of under $24,000 plus ORCs, the new MG3 still undercuts the Mazda2 (from $24,870 plus ORCs) and Toyota Yaris – which is priced from $25,880 plus ORCs until non-hybrid variants are discontinued.

“The quality of the vehicle speaks for itself and many customers will find their way into that vehicle – based not just on the price but the total value proposition that it has, from the entry model right through to the hybrid level,” said MG Motor Australia general manager of marketing, Dave Hearty.

The first hybrid-powered MG3 is priced from $27,990 plus ORCs for the Hybrid+ Excite, while the flagship MG3 Hybrid+ Essence tops the line-up at $29,990 plus ORCs, marking a hybrid price premium of $4000.

The hybrid figure compares with $28,500 plus ORCs for the most affordable Toyota Yaris Hybrid.

The MG3 Hybrid+ combines a 75kW/128Nm 1.5-litre four-cylinder petrol engine with a 100kW electric motor that draws energy from a 1.83kWh battery. Total combined power is listed at 155kW (no torque figure has been provided at the time of writing).

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