The reasons behind the affordability of MG cars are a combination of lower production costs, brand reputation and its willingness to undercut competitors for market share. Learn about the key factors contributing to the cost-effectiveness of MG cars and whether it’s worth buying one in Australia.
1. Brand Reputation
Founded in the UK in 1924, MG swiftly gained recognition for crafting affordable and stylish cars, however, the brand experienced a significant decline in the 1970s and had to be saved by Nanjing Automobile Group, a Chinese automaker. Most Australian car buyers don’t even remember that MG was a British brand and see it as one of the many obscure Chinese car brands popping up in the Australian Car market. With the lack of brand recognition and prestige, it can’t demand the same price premium as other more established brands.
2. Production Costs
One contributor to the affordability of MG cars is their production in China, where labour costs are significantly lower than in other parts of the world. As well as this raw materials and parts can also be sourced for cheaper in China.
This extends to MG’s range of electric cars as well, with the MG 4 being one of the cheapest models available in Australia at $38,990. Unlike its Western EV competitors MG owns its lithium battery supply chain, meaning lower battery costs.
3. Not as Polished
MG cars may have some of the features you’ll find in luxury cars without the price tag, however some owners report that MG car interiors are not as high quality as other more established brands.
4. Lower Resale Value
As MG is a less well-established brand in the Car Sales Market, it tends to depreciate faster. So if you’re looking to upgrade your car the resale value won’t be as high as you expect. However this means that new and used prices are cheaper.
Here are the factors you should consider when looking to buy an MG:
Warranty
One of the main reasons cited for buying MG cars is their inclusion of a 7-year warranty unlimited km warranty for their petrol cars and EV’s.
Advanced Features
The MG has many features that appeal to a younger demographic such as Apple CarPlay and large touchscreen displays, which contributes to its popularity.
Availability And Costs
If you don’t have time to wait months or even years for the latest model from an established brand, MG offers wide availability of all their later models including EV’s. As well as this if cost is a concern buying an MG is a good alternative to more expensive cars.
Brand Prestige
Unlike major brands such as Toyota and BMW, MG does not have a strong reputation or history to rely on. If a strong brand reputation is important to you then the MG may not be the right car for you.
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