News - Market Insight - Market Insight 2022
Market Insight: MG climbs the sales charts
Price, warranty, network coverage work for MG that holds 2000 orders for its next EV
18 Jul 2022
By NEIL DOWLING
DESPITE booming new-vehicle demand, a relatively low 40 per cent of car-makers on the Australian market showed a sales increase in the first six months of this year.
Of the 50 brands tracked in the monthly VFACTS sales figures, 20 brands showed sales rises and 30 posted losses with most of the retraction triggered by ongoing supply issues.
MG remains one of the stars of the Australian market. Although it has only three models – the MG3 light hatch, ZS small SUV and HS medium SUV – it has notched up 24,507 sales in the first six months of this year.
For perspective, Kia – another brand soaring up the sales ladder and which has 11 models – recorded 39,419 sales in the same period yet has been on the market considerably longer than MG’s youthful six-year tenure.
The outlook for MG in 2022 is that it can sell 49,000 units – up 20 per cent on 2021 – without the addition of its incoming updated ZS EV.
MG announced the facelifted and upgraded ZS EV with a pre-sale offer that enticed the first 500 customers who placed a deposit with a $500 discount toward the MG ChargeHub home charger.
“Our ZS EV pre-sale has exceeded expectations with record numbers of deposits being placed for the new vehicle before launch,” an MG spokesperson told GoAuto.
“We have received over 2000 orders for the vehicle across Australia and NZ before the vehicle has even launched.
“This offering is in line with our ongoing goal to not only provide people with value-packed vehicles but drive sustainable change through EV infrastructure as well.”
The spokesperson said sales were assisted by an increase in the popularity of EVs amid cost of living pressures.
“MG has some of the best EVs on the market with an accessible price point, making EVs available for everyone. We have also made exceptional efforts to secure stock for the Australian market in a world of global disruptions.
“This is the direct result of strong efforts by local management to secure stock from our global parent company. We have also increased our dealer footprint across Australia and New Zealand in the last 12 months, now with 100 dealer locations across Australia and New Zealand.”
Much of MG’s success is in its pricing. The MG ZS EV starts at $46,990 including on-road costs, the cheapest EV currently on the market. Its predecessor was even cheaper – $43,990 drive-away – but lacked the current model’s battery range and features.
MG Motor Australia and New Zealand CEO Peter Ciao said his company was “helping people to make the leap” into electric vehicles and the MG brand with the evolution of the ZS EV “which has already been strongly embraced by customers”.
Along with the lure of the low pricing, the brand also has an extensive dealer network and builds confidence in buyers with its seven-year warranty.
The ZS range comprises two variants of the EV, four of the petrol ZST and one petrol entry model that starts at $22,490 drive-away.
The MG3 hatchback is in two specs and priced from $18,490 on the road – the cheapest in its class – while the bigger HS SUV starts at $29,990 on road with a plug-in hybrid (PHEV) version available at $46,990 drive-away, also the cheapest PHEV on the market.
MG opened in Australia under the umbrella of its parent SAIC (Shanghai Automotive Industrial Company) and a local arm, SAIC Motor Company, in 2013 with a single model – the MG6 sedan – and one dealer in Sydney.
It was a ‘toe-in-the-water’ exercise followed up with a second bid in 2016, launching the MG3 and MG6 in March, then the larger GS SUV in October.
The smaller ZS SUV was launched in November 2017 and the GS was replaced with the HS in November 2019, while the HS PHEV came in March 2021. The MG6 ceased in 2017, while the MG3 continued as the only passenger car model.
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