Whenever you are shopping for a new car in Australia, one brand tends to raise eyebrows for its low prices compared to competitors: MG Cars. Many of us must be wondering, “Why are MG cars so cheap compared to Toyota or Mazda?”
If you are planning to buy a popular model like MGZ5 or just browsing through MG cars Australia showrooms, this article will help you understand why MG is positioned as a budget-friendly choice and what you need to know before buying one.
Let’s get into the intriguing story behind MG and answer the question of the hour:
“Why are MG Cars so cheap, and should you consider buying one?”
What Does MG Stand For?
Before understanding the price point, let’s take a step back and understand the story behind MG.
MG stands for Morris Garages, a historic British car manufacturer that first began producing sporty two-seater roadsters in the 1920s. For decades, MG was known for stylish, fun and affordable sports cars.
Moving on to 2025, MG is no longer owned by the British. The brand was acquired by SAIC Motor Corporation, one of China’s largest automotive companies. This change in ownership brought a lot of change in their strategy, cost and affordability factor.
Where Are MG Cars Made Today?
Most of the modern MG Cars are manufactured in China, and they also have some production facilities in Thailand and India to meet their regional demands. Building cars in China reduces manufacturing costs, along with lower labour costs, local part sourcing and economies of scale. These significant savings are passed down to buyers and therefore make MG vehicles much cheaper compared to similar models built in Japan, Europe or South Korea.
So, when you think about where MG cars are cutting costs to make it cheaper, it’s not quality, but due to assembly hubs in China. This globalised production helps MG stay competitive in pricing in the Australian Market.
Why Are MG Cars So Cheap Compared to Other Brands?
Now, let’s discuss further how and why MG cars are seen as affordable cars compared to their counterparts. Here are some of the reasons:
- Manufacturing Advantage
As mentioned, producing cars in China comes at a fraction of the cost of building them in Europe or Japan. Lower labour costs, access to raw materials, and government incentives for automakers all contribute to MG’s lower expenses.
- Brand Positioning
MG has repositioned itself as a budget-friendly alternative to established players. Instead of competing head-to-head with brands like Toyota or Volkswagen on heritage or prestige, MG competes on price and features.
- Aggressive Pricing to Gain Market Share
In Australia, MG is still a relatively new player. To grow quickly, they’ve adopted a penetration pricing strategy—keeping prices low to attract first-time buyers, young families, and budget-conscious drivers.
- Technology Borrowing
Many MG models, like the MG ZS, borrow proven technology rather than developing everything from scratch. This reduces R&D costs, which often make cars from established automakers more expensive.
- Simplified Lineup and Features
MG cars often come with fewer trim variations and simplified packages. While they offer appealing features like touchscreens, Apple CarPlay, and modern styling, they may not always match the refinement of pricier brands.
- Warranty as a Selling Point
To offset doubts about quality, MG offers generous warranties (7 years unlimited kilometre warranty in Australia). This gives buyers peace of mind while keeping upfront costs low.
Why Are MG Cars So Cheap in Australia Specifically?
The affordability of MG cars in Australia is even more pronounced due to:
Lower Import Tariffs: Australia has trade agreements that make it cheaper to import cars from China. Competitive SUV Market: To compete with brands like Kia, Hyundai, and Mitsubishi, MG prices its SUVs—like the MG ZS—very aggressively.
Currency Advantage: With large-scale operations, SAIC can absorb fluctuations in currency better than smaller manufacturers, keeping MG car prices steady. For Australian buyers, this means an MG ZS or MG3 hatchback often comes in thousands of dollars cheaper than comparable competitors.
For example, if you check used MG listings on Cars24, you’ll notice that even nearly-new MG models remain more affordable than other brands in the same category.
The Popular MG ZS: Why It’s Making Waves
One of the most talked-about MG cars in Australia is the MG ZS—a compact SUV that’s stylish, well-equipped, and attractively priced.
Key highlights include:
- A starting price often lower than small hatchbacks from rival brands.
- A roomy interior, touchscreen infotainment, and safety features.
- Low servicing and running costs.
But here’s the catch: while the MG ZS looks premium and modern, reviews suggest it may not have the same build quality or driving refinement as rivals like Mazda CX-3 or Hyundai Kona. Still, for budget-conscious buyers, it delivers a lot of value at a fraction of the price.
Is an MG Right for You?
Answer these quick questions to help decide:
Are you on a tight budget but want a new car with warranty?
→ MG could be a great fit.
Do you prioritise long-term reliability and resale value over upfront savings?
→ You might prefer brands like Toyota, Mazda, or Hyundai.
Do you want premium driving feel and brand prestige?
→ MG may not be your best match.
Do you plan to upgrade cars every few years?
→ MG’s low upfront cost might outweigh concerns about resale.
Conclusion
MG cars are cheap because of Chinese manufacturing, simplified design, aggressive pricing, and a brand strategy focused on affordability.
In Australia, trade agreements and market competition make them even cheaper. While MG offers value, features, and warranty peace of mind, buyers need to weigh that against concerns about resale value, refinement, and long-term reliability. If you’re looking for an affordable, feature-packed car for city driving or short commutes, an MG might be perfect. But if you value longevity and prestige, you may want to explore other options.
Still unsure? Compare used MG cars and alternatives on Cars24 to get a sense of real-world prices and resale trends before making your choice.
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