Cheaper MG 2 electric car in development, could cost $30,000 – report

Chinese car maker MG is reportedly working on a cut-price electric city hatch even cheaper than the $40,000 MG 4, which could be in overseas showrooms by the end of next year.

The new MG electric car – which could be named MG 2 to sit below the hybrid MG 3 and larger electric MG 4 – would reportedly be a Toyota Yaris or VW Polo-sized hatchback priced from £20,000.

While £20,000 converts to $AU38,850 – not much cheaper than the MG 4 in Australia, which starts from $39,990 – it would be about 25 per cent cheaper than the MG 4 in the UK, where it starts from £26,995 ($AU52,400).

Using the difference between UK and Australian prices for the MG 4, the new city-sized MG electric car could be priced from less than $30,000 plus on-road costs in Australia, which would make it the country's most affordable electric vehicle.

MG Motor UK product planning boss David Allison told UK publication Auto Express at the recent Geneva motor show:

"I think everyone seems to be looking in that area at the moment – B-segment [Yaris-size] or just below it, around four metres in length, with that magic 20,000-euro price bracket.

"If anyone’s going to do that, we should be right there. There’s an absolute window of opportunity around £20,000. It’s a combination of range, size and price – and if you hit all those three, you’ll nail it."

When asked if the project was in progress at MG, Mr Allison said: "Yes. I’ve seen it already, in fact. I don’t see any reason why it shouldn’t fly.

"It’s probably a couple of years away, maybe 18 months, so we’re talking second half of 2025. But we’ll get there."

The city-sized MG would rival cars such as the new Citroen e-C3, Peugeot e-208, and Renault 5 electric hatchbacks in Europe.

"It’ll probably get a new name but it would sit quite nicely within the existing convention. If you said MG 2 then you wouldn’t be a million miles away; 2 is the next step," the executive said.

The 'MG 2' would be the same size as the petrol and hybrid MG 3, but with electric power similar to the MG 4.

It is unclear if it would use the MG 4's electric-car-dedicated platform – known as MSP, or Nebula – or bespoke underpinnings designed to be cheaper to produce.

Auto Express reports the MG 2 will be preceded by new MG ZS and HS petrol SUVs, and the Cyberster electric roadster later this year, ahead of a new electric ZS SUV, and MG 4-based wagon next year.

The successor to the MG Marvel R available in Europe since 2021 will also be sold in the UK for the first time, according to the publication.

Mr Allison told Auto Express MG UK has asked head office in China for a top-of-the-range sporty model to sit above the existing flagship variants, with styling cues from the MG 4 XPower.

"At the moment our range tends to be a bit limited, with a mid grade and a high grade. What we need is something with a more sporty look and feel, but without necessarily having a boost in performance," the executive said.

"I think our brand would lend itself perfectly to that – something like an XP-Line. We’ve been talking about this for quite a while now and we just have to keep pushing at our end. The capability to do it [back in China] is definitely there."