√MG 3 price rises for fifth time in two years, about to exit sub-$20,000 market

A price rise for the MG 3 city hatch from China has pushed the Kia Picanto closer to becoming the only new vehicle left in Australia priced from less than $20,000.

Chinese car-maker MG has increased the price of its cheapest model – the MG 3 city hatch – for the fifth time in two years to $19,990 drive-away, an increase of $4000 in four years.

Australia’s top-selling city hatch is now on the brink of exiting the sub-$20,000 class .

Only two car companies now offer a vehicle below this price threshold in Australia: MG and South Korea’s Kia.

Only three vehicles remain available for less than $20,000 before on-road costs, comprised of one MG, the base-model MG 3 Core, after the MG 3 Core with Nav rose from $19,990 to $20,490 drive-away this month – and four Kia hatchbacks (Picanto S manual and auto, Picanto GT-Line manual and auto).

Once on-road costs are included, only the MG 3 Core and Kia Picanto S manual and auto remain priced less than $20,000 drive-away.

Prior to the COVID-19 pandemic, there were more than 60 vehicles across 19 models and 14 car brands – including Fiat, Honda, Hyundai, Mazda, Mitsubishi, Suzuki and Toyota – available for less than $20,000.

Rising manufacturing and shipping costs have seen prices increase dramatically – and car makers such as Suzuki and Mitsubishi have been forced to axe their cheapest models as they do not meet stringent new safety regulations.

The latest, $500 price rise applies to the two cheapest MG 3 models – the Core and Core with Nav (satellite navigation), but not the range-topping Excite – and is the fifth increase in two years.

This time two years ago the cheapest MG 3 was priced from $17,490 drive-away, while in 2019 it was $15,990 drive-away.

A representative for MG in Australia attributed the price rise to “increases in global supply chain [costs],” rather than the addition of any equipment.

The MG 3 has accounted for nearly 32 per cent of MG sales in Australia so far this year, and has been the top-selling vehicle in the “light car under $30,000” class for the past three years in a row.

Today, the MG3 outsells the second-placed Suzuki Swift by more than two-to-one.

In the first three months of last year, the MG 3 Core accounted for about 55 per cent of MG 3 sales, with a further 13 per cent of deliveries the Core with Nav model.