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MG MOTOR Australia has embarked on a more aggressive dealer and promotional campaign as it cements its position as a top-20 seller in Australia – a surprisingly quick rise to prominence that the company puts down to its historic name, a long warranty, value for money and an enthusiastic dealer network.

The Chinese-owned British brand is this year outselling the likes of Volvo, Skoda and Jeep, and is sitting just behind Renault.

In an exclusive interview with GoAutoNews Premium, MG Motor Australia marketing director Danny Lenartic said the company’s success was attributed to “challenging the norm”.

“We have seen the way the Japanese and Koreans have done it, with a 30-year plan and roadmap to follow,” he said.

“Instead, we brought in people who would challenge current norms and ideals and processes. We also found a network that was enthusiastic about following that same path.

“Then we are being led by a company that has a strong focus on international business. Those factors combined are the reason why we have been so successful.”

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MG has sold 4420 vehicles to the end of July this year, up 253 per cent on the same period in 2018, to edge ahead of more established brands including Volvo (4386), Skoda (4159), Jeep (3366), Mini (1962) and Peugeot (1297).

It is also currently the top-selling Chinese marque ahead of LDV (3646), Haval (783) and Great Wall (788).

This has been a catalyst for dealership rooftop numbers recently clicking over to 42 and, as a follow-up, MG Motor will open its first factory-owned dealership in Sydney’s Alexandria later this year.

Further impetus comes from its sponsorship of the prominent TV series Australian Survivor, the National Basketball League (NBL) and, as part of a global arrangement, supporting the Liverpool Football Club.

MG Motor Australia sales and network director Scott McIntyre said the dealership expansion had been “a considered approach”. It now has 39 dealers operating in 42 sales locations after this month opening two dealerships in Tasmania and three in New South Wales.

Ahead is the opening of its flagship showroom in Alexandria, which is now completing construction and marks a return for MG that had its Australian manufacturing plant in the adjoining suburb of Zetland from the 1950s through to 1972.

The Nuffield Australia factory started in 1950 and became BMC Australia and then Leyland Australia, building BMC products including MG models. The MGA, Midget and MGB were built there until 1972. The factory, on a 23ha site, closed in 1975 following the withdrawal of the Leyland P76 from the market.

“It’s close to the Sydney CBD and is only a kilometre from where MG had its Australian manufacturing plant in the 1950s through to the 1970s. In essence, we are moving back to our home,” Mr McIntyre said.

“We are looking at a fourth-quarter opening for that dealership. The location is strong for the brand because it has become an eclectic centre for car brands and it will suit us very well.

“Commercially, there’s more office space becoming available so it’s becoming quite a well-patronised centre. It is a Goodman-owned precinct and there are a lot of other businesses – including retail – that surround it and brings consumers in, especially over weekends.”

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The new showroom is across the road from John Newell Mazda, down the road from City Ford and next door to Crunch Fitness Gym and furniture outlets Scali, Space and Natuzzi. As Mr McIntyre put it, “there’s a lot of activity in the area”.

Referring to dealer numbers, Mr McIntyre said: “The (MG) car parc is starting to grow and while customers (numbers) are growing, we are mindful of making it as convenient as possible for them.

“(Dealers are) at the right number now. For the future, we’ll evaluate it. The appointments of new dealers will require them to understand the buying cycle of new-car customers and expectations. Based on that, we will review the dealers and new products.

“Our preference is for dealers who excel in the PMAs where they are based and have a strong CSI. Understanding the customer and the customer’s new-car journey is key to our appointments of dealers.”

Mr Lenartic said MG was in a growth stage and “no longer at start-up stage”.

“It’s critical that the dealer will want to come on the journey with us,” he said.

“Without that, I think it would be very difficult for them to help with the brand in the way that it has come in such a short space of time. So likeminded businesses are preferable so we can work together.”

By Neil Dowling

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