MG 4 electric car demand increased five-fold after discounts up to $10,000 – executive

Drastic price cuts that made the MG 4 Australia’s most affordable electric car have seen demand skyrocket – but existing customers will receive some form of compensation.

Demand for the 2024 MG 4 electric hatch has gone into overdrive following huge discounts which have seen the cheapest model limbo to $30,990 drive-away – and up to $10,000 slashed from other variants.

Customers who purchased an MG 4 in 2024 before the latest price cuts will have access to an undisclosed compensation “offer”, the company says – after up to a quarter of the value of a new equivalent was wiped overnight.

The offers introduced by MG on September 20 included a nationwide $30,990 drive-away on the base MG 4 Excite 51 – a saving of $8262 to $10,425, depending on the state of registration.

MORE: 2024 MG 4 electric car price slashed to $30,990 drive-away for limited time

More expensive models were also offered with $5000 to $8000 ‘factory bonuses’.

MG Motor Australia chief commercial officer Giles Belcher told Drive that since the offer was introduced on September 20, demand for the MG 4 has increased by about “five times”.

“In the last 10 days of the month, we doubled what we would normally sell in a month,” he said.

“That was the initial surge, if you like, but it settled down at a very, very healthy run rate. We’re very happy.”

MORE: Electric cars Australia – Cheapest, best and newest electric vehicles (EVs) and hybrids

The true effect of the MG 4 discounts on demand will become apparent in October and November sales data, given the offers were introduced late in September.

But given 385 MG 4 sales were reported last month, the carmaker could report more than 1900 deliveries this month – which may be enough to outsell the Toyota Corolla, Kia Cerato and other popular small cars.

It could even become the country’s top-selling electric car, given no other battery-powered model exceeded 1700 deliveries last month.

Belcher told Drive the “five times” figure applies to the entire MG 4 range – and that more expensive models have seen “significant growth” – but that the base Excite 51 has “had the biggest lift”.

“I think what it’s done, and the feedback leads me to believe this, [is] that it’s not just people who are interested in an EV that are looking at it, it’s the broader small hatch … buyer out there,” the MG executive said.

“I dunno the exact dollars, but it [the Excite 51] is probably $6000 cheaper than an entry-level Corolla.

“So the value in that car, it’s an award-winning, fantastic small car. So the value is almost, I would imagine, it’s unmatched in the industry at the moment.

He said the offer shows an electric car can defy the ongoing slowdown in demand for battery-powered vehicles, as long as it is affordable enough.

“It’s not just EV buyers looking at it, and that’s interesting, right? Because there was all the talk about EV sales are slowing, EV sales are stagnating, everybody wants hybrid, and there’s some truth to all that – you can’t deny the data.

“But it does prove that people are still interested in EVs if the product and the price is for them.”

The $30,990 drive-away promotion runs out at the end of this month – as do the ‘factory bonuses’, unless extended.

From 1 November 2024 to 31 January 2025, the Excite 51 will rise to $32,990 drive-away – which is still up to $8425 cheaper than it was in early September.

Asked if the MG 4 Excite 51 can retain a similar price past 1 February, Belcher said: “We’ll see how it’s going and what the situation is at that point.

“We have said that the new price of $32,990 will run out at the end of January. [We will] probably assess the situation in early January and make a decision.

“There’ll certainly be no decision made as yet. But $32,990, I think it represents an amazing deal. If $32,990 was the original price instead of $30,990, I think everyone would’ve gone, ‘wow, that’s a great price.’ So I still think it’s a great price.”

While the discount helps new customers, it has attracted criticism from existing customers who took delivery of an MG 4 as recently as one day before the offer came into effect.

“We’ve put together an offer for those people [who] bought an MG 4 at the higher price point in 2024,” Belcher told Drive.

“They just need to contact their dealership and the dealership will take them through what we can offer those people.”

Belcher declined to specify what the offer includes, saying he would “rather keep that confidential between the dealership and the customers.”

The MG executive said the company is happy with its decision – and the impact it may have had on resale values.

“You always have to weigh up various factors when you make a decision … Resale value is difficult – you can only control what you can control.

“Obviously pricing has a fairly big impact on what cars will be worth down the track, so we have to weigh up all these things, but we think on balance it was the right move for us at that point.”

The post MG 4 electric car demand increased five-fold after discounts up to $10,000 – executive appeared first on Drive.