A month after most state governments began offering tax incentives on electric cars, the price of the Australia’s cheapest electric vehicle – the MG ZS EV – has gone up $1000.
Australia’s cheapest electric car, the MG ZS EV, has gone up in price by $1000 – from $43,990 to $44,990 drive-away – after most state governments began offering generous tax incentives on electric vehicles of up to $3000.
Authorities in NSW, Queensland, Victoria, Tasmania and the Australian Capital Territory now offer taxpayer-funded benefits such as free or reduced stamp duty on electric cars or, in some cases, cash-back offers.
In NSW, the biggest market in Australia for new motor vehicles, buyers of electric cars get a $3000 rebate as well as free stamp duty, which saves a further $1500 on a $44,990 car.
Prior to the rollout of tax incentives and rebates on electric cars in Australia, industry analysts were concerned such measures could prompt some car companies to increase the retail cost of their electric vehicles – to maximise their profits as buyers benefit from lower government charges.
The increase in price of the MG ZS EV coincides with other increases of between $500 and $1000 across much of the MG model range from 1 July 2021.
A spokesperson for MG in Australia said the price rises were driven by “exchange rate fluctuations and material cost adjustments.”
MG, which is now part of Chinese car giant SAIC, has been manufacturing cars in China since 2007.
Although the exchange rate between Australian and Chinese currency has moved up and down in the past 12 months, the exchange rate is almost identical today to 12 months ago.
According to currency converter XE.com, today one Australian dollar buys 4.82 Chinese Yuan – versus 4.88 Chinese Yuan on the same date last year.
Although there are no technical changes, the MG ZS EV electric car now also comes with a seven-year warranty, as with the rest of the MG range. Previously the MG ZS EV offered only five years of coverage.
A portion of the MG ZS EV price increase is likely to contribute to the longer warranty coverage, as car makers typically set aside a pool of funds to cover future claims.
The recent round of price rises has also pushed up the cost of one of Australia’s cheapest hatchbacks by between $500 and $1000 (see table below).
The MG 3 Core (pictured above) previously cost $16,990 drive-away but is now $17,990 drive-away (a $1000 increase), while the MG 3 Core with satellite navigation has also risen by $1000, from $17,490 drive-away to $18,490 drive-away.
2021 MG 3 Australian pricing, as of 1 July 2021
- MG 3 Core – $17,990 (up $1000 over previous pricing)
- MG 3 Core Nav – $18,490 (up $1000)
- MG 3 Excite Nav – $19,490 (up $500)
2021 MG ZS Australian pricing, as of 1 July 2021
- MG ZS 1.5 Excite – $21,990 (no change)
- MG ZS EV Essence – $44,990 (up $1000)
Note: MG ZS Excite Plus and Essence models have been discontinued, following the expansion of the ZST range in June.
2021 MG ZST Australian pricing, as of 1 July 2021
- MG ZST 1.5 Core – $25,490 (new model, no change)
- MG ZST 1.5 Vibe – $26,990 (new model, no change)
- MG ZST 1.3 Excite – $29,990 (up $500)
- MG ZST 1.3 Essence – $32,990 (up $500)
2021 MG HS Australian pricing, as of 1 July 2021
- MG HS 1.5 Core 2WD – $29,990 (no change)
- MG HS 1.5 Vibe 2WD – $30,990 (down $1000, from $31,990)
- MG HS 1.5 Excite 2WD – $34,990 (no change)
- MG HS 2.0 Excite X AWD – $37,990 (no change)
- MG HS 1.5 Essence 2WD – $38,990 (no change)
- MG HS 2.0 Essence X AWD – $42,990 (no change)
- MG HS 1.5 Essence Anfield – $40,690 (no change)
- MG HS 1.5 PHEV 2WD – $47,990 (up $1000)
All prices listed are drive-away. All figures are correct as of 1 July 2021, and are subject to change.
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2021 MG ZS EV: Australia’s cheapest electric car price rises after the introduction of tax incentives