MG 4: Australia’s Most Affordable Electric Car

In a bold move to boost sales, MG Motor Australia has slashed prices on the MG 4 electric hatchback, making it the country’s most affordable electric car. With the base model now available for $30,990 drive-away, demand has surged, with an astonishing fivefold increase in interest since the announcement of the price cuts on September 20.

Huge Discounts Driving Demand

The pricing strategy, which includes discounts of up to $10,000 on various MG 4 models, has resulted in remarkable sales momentum. The base MG 4 Excite 51, for instance, saw a drop in price of $8,262 to $10,425, depending on the state of registration. More premium models also came with enticing factory bonuses ranging from $5,000 to $8,000.

According to MG Motor Australia's Chief Commercial Officer, Giles Belcher, these offers have led to unprecedented demand. “In the last 10 days of the month, we doubled what we would normally sell in a month,” he shared. With 385 MG 4 sales reported last month, projections suggest that October could see over 1,900 deliveries—potentially outselling other popular models like the Toyota Corolla and Kia Cerato.

A Shift in Market Dynamics

The surge in interest isn’t just from dedicated electric vehicle (EV) buyers. Belcher noted that the MG 4’s appeal has expanded to include buyers of traditional small hatchbacks. “I think what it's done... is attract the broader small hatch buyer out there,” he explained, emphasizing the value proposition of the MG 4. He compared it to the entry-level Corolla, indicating that the Excite 51 is approximately $6,000 cheaper, making it a compelling option in a competitive market.

Addressing Customer Concerns

While the price cuts have attracted many new customers, they have also raised concerns among those who purchased the MG 4 at higher prices before the discounts. To address these concerns, MG is offering an undisclosed compensation plan for existing customers. “They just need to contact their dealership and the dealership will take them through what we can offer those people,” Belcher stated, although specifics remain confidential.

Looking Ahead

The $30,990 drive-away promotion and factory bonuses are set to expire at the end of October, after which the price of the Excite 51 will increase to $32,990. Despite this rise, it will still be up to $8,425 cheaper than its original price earlier this month. When asked about future pricing, Belcher indicated that the company would reassess the situation in January.

Belcher expressed confidence in the pricing strategy, suggesting that even if $32,990 were the initial price, it would still be considered a great deal. This pricing flexibility demonstrates MG’s commitment to making electric vehicles more accessible, even in a market where EV demand has shown signs of stagnation.

Conclusion

MG Motor Australia’s drastic price cuts for the MG 4 have not only made it the most affordable electric vehicle on the market but have also reinvigorated interest in electric cars amidst broader market concerns. As the company prepares for future challenges, their approach shows that affordability can significantly influence consumer interest in EVs. With an anticipated increase in sales and positive feedback from buyers, the MG 4 is poised to make a notable impact in the Australian automotive landscape.