A new car price war is forming: 2026 MG4, MG HS Super Hybrid and MG ZS Hybrid value increased, joining Nissan, GWM, Skoda and other dropping prices

A new car price war is brewing as another brand cuts prices.

MG is the latest carmaker to slash thousands of its cars as the new car market stalls and a wave of new, affordable brands launch in Australia.

The Chinese brand will freeze or cut prices across its entire MY25 range, with savings between $1000 and $6000, in a bid to boost sales.

The company is focusing on improving the value of its hybrid range with a move to drive-away prices for its plug-in hybrid HS mid-size SUV and ZS hybrid small SUV.

MG has reduced the price of the HS plug-in hybrid, dubbed Super Hybrid before deliveries start in September. It now starts at $50,990 drive-away for the Excite grade and $54,990 drive-away for the Essence variant, which equates to a $2000 and $1000 saving, respectively.

It combines a 1.5-litre turbocharged four-cylinder petrol engine with a 154kW electric motor and a 24.7kWh lithium iron phosphate (LFP) battery for total system outputs of 220kW and 350Nm.

MG claims the HS Super Hybrid can travel up to 135km on electric power alone, according to NEDC testing, and with a full battery charge and tank of petrol (55L) is able to travel a total distance of 1000km.

The ZS Hybrid won't be hit with the usual new financial year price hike and will remain as $32,990 drive-away and $34,990 drive-away for the Excite and Essence grades, respectively.

The ZS Hybrid+ is powered by a 75kW/128Nm 1.5-litre naturally aspirated four-cylinder petrol engine with a 100kW/250Nm electric motor, with a claimed combined output of 150kW/465Nm.

MG claims this delivers fuel use of 4.7L/100km.

MG is also extending the introductory offer on its new petrol-powered QS seven-seat SUV for another month. The QS Excite costs $46,990 drive-away and the all-wheel drive Essence is $50,990 drive-away.

The biggest price cut is to the MG4 XPower electric hatchback. The potent dual-motor EV now starts at $49,990 before on-road costs, which is $6000 cheaper than before.

MG covers its cars with a 10-year, 250,000km warranty, which drops to seven years of coverage if not serviced at a MG dealer. This is a step back from its unconditional 10 year warranty offered earlier this year, souring its value.

"By holding or reducing our MG OEM prices across all models and offering generous campaign drive-away pricing on our Hybrid+ and Super Hybrid range, we’re ensuring more Australians can upgrade and access advanced, efficient hybrid models without compromise," said MG Australia boss, Peter Ciao.

“As we continue to grow, our mission remains the same – delivering high-quality, reliable vehicles engineered for Australian conditions, at prices Australians can afford."