New MG2 will beat Volkswagen to the baby electric car market

MG is lining up a new budget electric car that will take on the likes of the new Citroen e-C3 and the next-generation Fiat Panda. It's likely to be badged MG2 and it could cost as little as £20,000 when it arrives at the end of next year.

The Chinese-owned British brand launched an all-new generation of its MG3 supermini at the 2024 Geneva motor show. It brings in a full-hybrid powertrain and is likely to be more expensive than its predecessors – while still undercutting the likes of the Toyota Yaris and Renault Clio in the electrified market.

But speaking at the show, MG Motor UK’s head of product and planning, David Allison, revealed that the company is also working on an all-electric sibling to the MG3.

“I think everyone seems to be looking in that area at the moment – B-segment or just below it, around four metres in length, with that magic 20,000-euro price bracket,” Allison said. “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 already in progress, Allison replied, “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.”

Our exclusive images take cues from the combustion-powered MG3, which measures 4.1 metres in length, blending them into a downsized model with pure-electric traits from the popular MG4 – the UK’s second best-selling EV in 2023 (after only Tesla’s Model Y).

Allison added that the car would most likely carry the MG2 badge. “It’ll probably get a new name but it would sit quite nicely within the existing convention,” he explained. “If you said MG2 then you wouldn’t be a million miles away; 2 is the next step.”

MG’s access to Chinese manufacturing and the economies of scale afforded by its parent company, the multi-brand group SAIC Motor, mean that it could conceivably match or even surpass the 44kWh battery capacity offered on the launch version of the e-C3, which has up to 198 miles of range. We’d expect in-car tech to mirror that of the MG3, which gets a pair of screens – a seven-inch digital instrument cluster and a 10.25-inch infotainment display.

The MG2 would cap a major range overhaul for MG; following the MG3, this year should also bring replacements for the ZS and HS SUVs, as well marking the UK launch for its new Cyberster roadster. Next year we’ll see a new all-electric ZS, and the successor to the existing MG5 EV estate. MG UK is also planning to introduce the next generation of Marvel R, an all-electric family-sized SUV sold in foreign markets, as a potential rival for the Volkswagen ID.4, Renault Scenic and aforementioned Tesla Model Y.

Allison revealed that the UK arm of MG is lobbying for a sportier trim level that could be added above the existing Trophy range-topper – and that the MG3 could be the model to introduce it. It wouldn’t get any extra power beyond the 192bhp launch model, however. 

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

“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.”

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