MG has become the first electric vehicle (EV) manufacturer to drop its price below $35,000 in Australia. Competition in the industry is fierce as carmakers try to battle frontrunners BYD and Tesla, who notched five of the 10 best-selling electric vehicles from January to June 2024.
The MG ZS EV has had thousands of dollars wiped off its asking price and now sits at $34,990. Car expert Paul Maric told Yahoo Finance the market is only going to get better for consumers in the coming months.
“It’s all been spurred on by Chinese brands who have started bringing in much more affordable electric vehicles to what we’re used to,” he said.
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“We’ve seen brands like Porsche take $20,000 out of some of their electric cars, which is unheard of, and it also gives you an idea of how much margin they actually had built into them.
More than a dozen Chinese-made EVs are expected to flood into Australia in the next 18 to 24 months and that could see prices across the board drop even further.
Why has MG dropped the price of their electric vehicle?
Previously, the cheapest EV you could get in Australia was the GWM Ora Standard for $35,990, according to Gizmodo.
You also had the BYD Dolphin ($36,890), MG4 Excite 51 ($37,990), Nissan Leaf ($39,990) and Peugeot e-2008 ($39,990) in the sub-$40,000 range.
But now MG has shifted its pricing tactic and is at the cheapest end of the spectrum.
MG Motor Australia chief executive officer Peter Ciao said the move was designed to get more Aussies into the EV market.
“MG has been leading the charge with attainable electric vehicles since the launch of the local award-winning ZS EV and MG4, with reduced nationwide drive away pricing on some of our range Australia-wide, we maintain our leadership position in this space,” he explained.
“MG is putting customers first by ensuring all road users can access a wide range of affordable zero-emission vehicles.”
Price drop AND an increased warranty
Not only has MG dropped the price on eight of its vehicles, but it has now set a record for the longest warranty on offer in Australia.
MG has leapfrogged Mitsubishi’s 10-year or 200,000-kilometre warranty and is now offering the same time period but 50,000 extra for consumers who walk away with a new car.
“If you’re looking for value and peace of mind from a new car purchase, the length and quality of the factory warranty should be as important as the horsepower,” MG Motor’s chief commercial officer Giles Belcher said.
“We think that our new 10-year warranty for EV, PHEV, Hybrid and petrol range is the best and strongest in market.
“We are listening to our customers. We do think a longer warranty is more attractive, and it also reiterates trust in our cars.”
Should you trust the cheapest on the market?
You might have concerns about getting the cheapest car on the industry spectrum, but Matt Wright, CEO of Cars4us, explained why he’s backing MG.
He told Yahoo Finance the manufacturer was one of his top picks if you’re in the market for an EV, along with the Nissan Leaf, Kia’s EV6 and Niro, and Hyundai’s IONIQ and KONA.
“Kia and Hyundai are synonymous for longevity, low maintenance costs and price point as well,” he said.
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