MG Motor plans to introduce a compact electric vehicle in 2027 with a target price below £25,000, positioning the upcoming MG2 as the new entry-level model in its seven-vehicle electric lineup, Autocar reported, citing David Allison, head of MG Motor UK. The development marks a shift from earlier expectations that the model would debut in 2025 at around £20,000.
According to Autocar, the MG2 is being prepared to compete with an expanding class of compact electric cars, including the Renault 5, Dacia Spring, Hyundai Inster, Stellantis models based on the Citroën e-C3, and Volkswagen’s ID. Polo-based offerings.
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Allison told the publication: “I’ve always felt that was the next market that was going to happen, because as Europe transitions towards EVs, inevitably the easiest way of making them more affordable is downsizing.” He added that early Renault 5 sales reinforced the scale of demand for small, lower-cost electric cars.
Allison said the segment’s momentum strengthened his belief in MG’s strategy. “It fills me with lots and lots of confidence that that should be really, really successful in the space,” he told Autocar, noting that MG sees significant opportunity but does not intend to compete solely on price. “If you look at the price of the Dacia Spring and you look at the price of the Leapmotors, that’s not the space we occupy. And I don’t necessarily think it will be the space that we can occupy,” he said. Technical details for the MG2 have not yet been released, but the model will sit below the MG4 in MG’s European range.
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The report also highlights the differing market strategies for the MG4. While MG began selling the second-generation MG4 in China in September, the company does not plan to launch the new generation in the UK for now.
Instead, Allison told Autocar that MG intends to introduce only a facelifted version of the current MG4 to the UK market. The first-generation MG4 performed strongly in Europe but saw weaker demand in China, prompting SAIC to replace the expected facelift with an entirely new generation for its domestic market.