MG 3, Australia’s cheapest car, returns to less than $20,000 amid sales slide

2024 MG 3 Hybrid+ Essence shown

The MG 3 hatchback has returned to its sub-$20,000 drive-away price point, less than a year after the brand claimed "development and production costs" would stop it from offering a car so cheap again. 

Until October 31, 2025, unless extended, MG Motor Australia is offering $2000 cashback across the MG 3 range, with the entry-level Vibe listed at $18,990 drive-away. 

At $18,990, the MG 3 Vibe automatic is Australia's cheapest new car, followed by the Kia Picanto Sport manual at $19,190 before on-road costs, or around $22,000 drive-away. 

The MG 3 Vibe arrived in Australia earlier this year at $21,990 drive-away, deleting some features from the previous entry-level grade, the Excite, to reach a more affordable price. 

Meanwhile, the smaller Kia Picanto has achieved 5611 sales so far in 2025, a 27 per cent increase over last year. 

Year-to-date, the MG brand has faced a decline in sales amid increased competition and the launch of the dearer, new-generation MG 3 and ZS, with reported registrations down 10 per cent year-on-year. 

In September 2025, its sales increased 4 per cent over the same month last year, led by its new S5, QS, IM5 and IM6 models, along with increased HS demand, rather than a full recovery for the MG 3 and ZS. 

The $18,990 drive-away price contradicts MG's messaging earlier this year, suggesting a $19,990 run-out deal for the previous-generation model could be the "last chance" for Australians to buy a new car for under $20,000. 

"The all-new MG 3 is now available and becoming a favourite among motorists," former MG Motor Australia chief commercial officer Giles Belcher said in January 2025. 

"With the addition of exciting new features, the price is now $22,990 (drive-away). With ever-growing development and production costs, we don’t expect to offer a car for under $20,000 in Australia again."

The MG 3 Vibe features 15-inch steel wheels with hubcaps instead of 16-inch alloy wheels, while deleted features include a space-saver spare wheel, push-button start, and rear air vents. 

It also misses out on blind-spot monitoring, rear cross-traffic alert, power-folding mirrors and a one-touch automatic up/down driver's window. 

A four-star ANCAP safety rating applies across the MG 3 range, based on testing conducted in 2025, despite concerns raised about the driver's seat twisting during a frontal-offset collision.

MG is also offering $2000 cashback across its ZS line-up, with the entry-level Vibe available for $23,990 drive-away, equivalent to the GWM Haval Jolion, Chery Tiggo 4 and Mahindra XUV3XO.

Jordan is a motoring journalist based in Melbourne with a lifelong passion for cars. He has been surrounded by classic Fords and Holdens, brand-new cars, and everything in between from birth, with his parents’ owning an automotive workshop in regional Victoria. Jordan started writing about cars in 2021, and joined the Drive team in 2024.

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