Used car prices are 'ridiculous', says MG boss

7NEWS

a day ago

Australians are paying 'ridiculous' prices for used cars, says MG Motor Australia CEO, Peter Ciao.
And he has a plan to correct the market, while encouraging more new-car buyers, with a three-pronged powertrain strategy that's designed to challenge the status quo.
'For me, the used car price in Australia is ridiculous. It's too high,' Ciao told CarExpert in an exclusive interview.
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'There are more than one million used car buyers each year, and lots of people will purchase a used car because they trust this brand and [will] pay 70 per cent of the price for a car that has already driven 50,000km, 80,000km or more, and maybe only has one year left on the warranty. Why would you do that?
'At MG, we need to challenge this.'
The Chinese automaker has firmly established itself as a top-10 selling brand in Australia, on the strength of its budget-focused range of small passenger vehicles, family-friendly SUVs and, to a certain degree, the affordable MG 4 electric hatchback.
But it is in the midst expanding its model portfolio with new fuel-efficient powertrains across its core product lineup, with models such as the MG 3 city hatch and the ZS small SUV now offered with the choice of conventional petrol engines or hybrid options.
And, in the case of the HS mid-size SUV and the upcoming QS seven-seat SUV, also with 'Super Hybrid' plug-in alternatives.
This, claims Mr Ciao, provides MG with the ability to challenge the used car market with entry-level models powered by internal combustion engines, while tackling the lower end of mainstream brands with hybrid vehicles, and also conventional hybrid rivals with the added benefit of plug-in technology at similar prices.
'My business strategy is to continue to provide a fantastic price for customers,' he said.
'With a population of 27 million people, everyone's budget is different. And, at MG, we look after everyone, and we challenge the other OEMs [automakers].
'With MG, I will provide a new car with a 10-year warranty that is priced similarly to a used car. For MG 3, ZS, HS and QS with ICE powertrains, I will focus on why you shouldn't buy a used car.
'For hybrid, I'll use this to benchmark against other OEMs offering entry-level models with stronger Hybrid+ value.
'[And] with Super Hybrid, I will compete with the top hybrids. The benefit will be to provide more for the same price, as the MG Super Hybrid is much, much better than a normal hybrid.
'This is my strategy: I will use ICE to target used car buyers, hybrid to target OEM petrol, and Super Hybrid to target other hybrids.'
Watch this space for our full Expert Insights interview with Mr Ciao this weekend.