Market Insight: For MG 4, money talks

MG MOTOR’S recent discounting of the MG 4 electric hatchback appears to have had the desired effect, the model’s record 1486 deliveries last month single-handedly outselling electric vehicle market leader Tesla by 22 units and elevating it to October’s second most-popular small passenger car behind the Toyota Corolla.

Since launching in August last year, the MG 4 enjoyed an initial surge of popularity, peaking in November 2023 with 835 sales, after which volume settled to a fairly consistent monthly run-rate that averaged 419 deliveries for each of the first nine months of 2024.

This more than tripled in October after MG announced a sharpening of its pricing pencil that pitched the entry-level MG 4 51 Excite at $30,990 drive-away until the end of the month.

It represented a saving of $9000 – or nearly 25 per cent – over the previous sticker price, although dealers had been known to let MG 4 stock roll out of showrooms at much less than list.

During October MG Motor Australia also offered factory bonuses of up to $8000 on other MG 4 variants to clear stock of MY23 examples, as well as subsidising MY24 cars to the tune of $5000.

It left the MG 4’s direct rivals – GWM’s Ora ($35,990 drive-away) and the BYD Dolphin ($38,990 before on-road costs) – almost for dead, respectively selling 154 and 67 units last month.

Toyota sold 1751 Corollas in the same timeframe, the now hybrid-only hatch version starting at $32,110 before on-road costs. Hyundai sold 1293 i30s, ranking third in small passenger car sales behind the Corolla and MG 4.

October also happened to be Tesla’s lowest-selling month since January, when it delivered 1107 vehicles, the 422 Model 3 sedans 1042 Model Y SUVs that found homes in October totalling less than half the brand’s monthly average of 3417 units from January to September.

Whether this represented a low ebb in Tesla’s typically cyclical delivery behaviour – due in part to its direct sales model – or electric car customers tempted by the prospect of buying two MGs for the price of one Tesla is unclear.

Another factor that could be at play is MG’s introduction of a market-leading 10-year, 250,000km factory warranty from August 1, coverage that lasts six years and 170,000km longer than Tesla’s.

Regardless, Tesla sales have been trending downward since March, when 4379 Model Ys were delivered along with 1638 Model 3s.

The electric car pioneer’s dominance and recent sales decline have dragged the overall battery electric vehicle market into the red, with year-to-date deliveries of 32,214 units down 19.4 per cent on 2023’s results.

Considering that this time last year Teslas accounted for 55.7 per cent of the 71,800 battery electric vehicles sold in Australia, the US-based brand’s influence on market dynamics cannot be underestimated.

Time will tell whether Tesla can bounce back or if the arrival of a dozen or so Chinese brands debuting electric SUVs priced to compete directly with the Model Y will dilute its presence permanently.

For now, MG has upped MG 4 prices slightly, the Excite 51 variant now opening proceedings from $32,990 drive-away – still a few grand clear of its next most affordable competitors.

Long warranties and discounts have not stemmed the bleeding at MG, though, with sales down 14.7 per cent last month and 15.6 per cent behind year to date.

However, the recent arrival of new-generation models including the MG 3 light hatch, HS medium SUV and ZS small SUV could start to bear fruit in the new year.