“MG Takes a 270 Billion VND Loss to Boost MG4 EV Sales”

This was due to the deep discount program for the MG4 electric car model. Specifically, in October 2024, the MG4 received a discount of up to AUD 10,000 (about VNĐ 171.2 million), bringing the selling price down to AUD 30,990 (around VNĐ 533 million). This strategy boosted sales significantly, with 1,486 units sold in October 2024, five times higher than usual. However, the heavy discounts resulted in a loss of AUD 8,262 to AUD 10,425 (approximately VNĐ 141.4 million to VNĐ 178.5 million) per car, totaling AUD 12.3 to AUD 15.5 million (about VNĐ 210.6 billion to VNĐ 265.4 billion).

“MG lost a significant amount of money in October alone, exceeding AUD 15 million (nearly VNĐ 270 billion). This was a strategic decision to sacrifice profits and promote electric cars, putting more MG4s on the road and changing consumer perceptions,” said Peter Ciao, CEO of MG Australia.

Following the conclusion of the promotion, MG4 sales gradually decreased. From 821 units in November 2024, sales slightly increased to 855 units in December 2024 but dropped to 440 units in January 2025. This indicates that the impact of the discount was short-lived, while MG’s profit margins on the MG4 remain thin.

According to Mr. Ciao, the discount campaign aimed to highlight the low operating costs of electric vehicles in Australia, where 75% of the population lives in detached houses, and many households have installed solar power systems. “If the second car in a family is electric, the usage cost is almost negligible. MG wants consumers to experience this and change their reservations about electric vehicles,” he said.

Mr. Ciao also stated that the market share of electric vehicles in Australia had dropped to 6-7% in 2024, prompting MG to take decisive action to maintain faith in the future of electric transportation.

Following the promotional campaign, MG is planning to launch a front-wheel-drive version of the MG4, tentatively named the MG4 Urban or MG40.

The new model is expected to have a starting price of less than AUD 35,000 (approximately VNĐ 602 million), making it more affordable than the current rear-wheel-drive and all-wheel-drive variants. This version focuses on economy rather than performance.

When compared to the BYD Seal, priced at AUD 46,990 (VNĐ 804.7 million), Mr. Ciao asserted, “MG’s vehicle will be priced below AUD 40,000 (VNĐ 685 million). In this segment, there are few direct competitors to the MG4 in terms of pure electric rear-wheel-drive vehicles.”

TH (Tuoitrethudo)