Biggest sticker reductions on models already heading out the door and mightn’t last - but new cover seems permanent.

EXTENSION of warranty cover to what it believes establishes a market-leading level is one of the tools MG’s national distributor has decided to use to stimulate sales when new car sales, particularly electrics, are in a trough.

This explanation comes from the brand today in response to questions about the new warranty cover, which is purely for private buyers, and also price reductions across its two fully electric models, plus a plug-in hybrid.

MG yesterday announced that, as of today, it will offer a 10-year/ 250,000km warranty across its entire portfolio of new vehicles for non-commercial users. 

For commercial use, a seven-year, 160,000km warranty remains in place.

The brand has since added that the cover is transferrable. The NZ facilitation appears to be more generous than those offered in Australia and the United Kingdom, where seven year plans seem to be the norm.

In addition, the marque has announced a price reduction across its two full electrics, the MG4 and ZS EV, plus the HS in plug-in hybrid forms. 

In respect to that, it has been evasive about whether the new stickers are permanent.

That might seem relevant in respect to cuts to MG4 which see the 64 Excite and Essence reduce by $2000, the entry Excite 51 by $4000 and the top flight XPower AWD by $5000, as that model is expected to remain on sale for some years yet.

The ZS and HS are not; the cuts for those affect current models which likely have just a month or so of sale left in them. 

The latter is in runout and the ZS appears to have started with this revision; replacements for both have been revealed internationally and are expected to release here soon.

The HS PHEV Excite and Essence both lose $6000. 

The ZS is the most dramatically affected of all MGs. The entry Excite drops $10,000, the mid-spec Essence goes down $8000 and the Long Range is reduced by $5000.

Questions put by MotoringNZ.com were forwarded by its NZ office to MG’s regional management in Australia, which replied by email. 

Asked if the price changes and the emboldened warranty were a reaction to the much slowed EV sales environment, which has clearly hurt MG EV volume (going by industry-available stats), and also a reaction to other Chinese brands (Omoda, BYD) having also reduced their prices, the brand replied: “There are a number of tools at our disposal which we may use to stimulate the market.  The warranty extension is a compelling offer which reinforces trust in our product.”

Asked if there was a determined period for the price revisions; if they were specifically for stock on the ground or for fresh shipments as and when they arrive (notably in respect to MG4), it said: “The revisions started on Aug 1 and are in market for an unspecified time.  

“As is the case with any campaign or marketing initiative, we can turn the offer on or off as we see fit.”

Asked if the ZS price drop was to facilitate clearing stock ahead of the new model, the brand chose to say: "The price drop creates an attractive opportunity to people to consider making the switch to full EV motoring.”

Asked if other models, specifically the new MG3, might also be affected by price changes, the brand said: “The price reduction only applies to models referenced as part of this campaign.”

In shared comment yesterday, newly-installed MG Motor New Zealand chief operating officer Harrie Yan said brand confidence is a top consideration for new car buyers, and a longer warranty period can assist with purchasing decisions.

“If you’re looking for value and peace of mind from a new car purchase, the length and quality of the factory warranty should be as important as the horsepower.”