MG Australia has made significant changes to its 2025 MG 5 lineup, streamlining the range by cutting variants and adjusting pricing, a move that has sparked debate among budget-conscious buyers and industry observers. Once marketed as Australia’s cheapest sedan, the MG 5 now starts at a higher price point, with fewer options and a focus on higher-spec models. This 1500-word article dives into the reasons behind the cuts, the updated lineup, performance, features, and whether the revised MG 5 remains a compelling choice in the competitive small-car market.
Why the Cuts? A Strategic Shift
MG Australia’s decision to pare down the 2025 MG 5 range reflects a broader strategy to reposition the brand in a market where small sedans are losing ground to SUVs and electrified vehicles. The previous lineup offered four variants—Vibe, Essence, Excite, and Essence Turbo—but for 2025, MG has axed the entry-level Vibe and Excite trims, leaving only the Essence and Essence Turbo. This reduces buyer choice and raises the entry price from $24,990 drive-away (2024 Vibe) to $28,990 drive-away for the Essence, a $4,000 jump. The Essence Turbo now costs $32,990 drive-away, up $2,000 from last year.
According to MG Australia, the decision stems from shifting consumer preferences and supply chain considerations. The Vibe, while affordable, had low take-up due to its basic features and lack of appeal compared to higher-spec models. By focusing on the Essence and Essence Turbo, MG aims to emphasize premium features and performance, aligning with competitors like the Hyundai i30 Sedan ($29,000–$37,000) and Toyota Corolla Sedan ($28,130–$39,100). However, the move risks alienating budget buyers who valued the MG 5’s sub-$25,000 price tag, especially as rivals like the Kia Cerato ($27,060) exit the market, leaving a gap MG could have exploited.
The cuts also coincide with MG’s push toward electrification, with models like the MG 4 EV gaining traction. With small-car sales declining—down 12% in Australia in 2024 per VFACTS—MG may be prioritizing profitability over volume, betting that buyers will pay more for a better-equipped sedan. But does the 2025 MG 5 deliver enough to justify the higher cost?
The 2025 MG 5 Lineup: What’s Left?
The streamlined 2025 MG 5 range consists of two variants:
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Essence ($28,990 drive-away): Powered by a 1.5-liter naturally aspirated four-cylinder engine producing 84 kW (113 hp) and 150 Nm of torque, paired with a CVT automatic. It offers a 7-inch digital instrument cluster, 10.25-inch touchscreen with Apple CarPlay and Android Auto, leatherette upholstery, and a six-speaker audio system.
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Essence Turbo ($32,990 drive-away): Features a 1.5-liter turbocharged four-cylinder engine with 119 kW (160 hp) and 250 Nm of torque, mated to a seven-speed dual-clutch transmission (DCT). It adds a panoramic sunroof, 360-degree camera, and sportier styling with 17-inch alloy wheels.
Both models come with front-wheel drive and a five-year, unlimited-kilometer warranty, plus a seven-year anti-corrosion warranty. The Essence Turbo also includes MG’s Pilot suite of advanced driver assistance systems (ADAS), such as adaptive cruise control, lane-keep assist, blind-spot monitoring, and rear cross-traffic alert, which are optional on the Essence via a $1,000 safety pack.
Notably, MG has not introduced hybrid or electric variants for the MG 5, unlike the MG 3, which gained a hybrid option in 2024. This limits its appeal in a market increasingly favoring electrified powertrains, especially as fuel prices hover around $1.80–$2.00 per liter in Australia.
Performance and Driving Experience
The MG 5’s two engines cater to different priorities:
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1.5-liter Naturally Aspirated (Essence): With 84 kW and 150 Nm, this engine feels underpowered, taking around 11 seconds to hit 100 km/h. The CVT is smooth but dulls responsiveness, making overtaking or highway merging sluggish. Fuel economy is rated at 6.0 L/100 km (combined), competitive with the Hyundai i30 Sedan (6.1 L/100 km) but less efficient than the Toyota Corolla Hybrid (4.2 L/100 km).
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1.5-liter Turbo (Essence Turbo): The turbo engine is punchier, reaching 100 km/h in about 8.5 seconds, and the DCT offers quicker shifts, though it can hesitate at low speeds. Fuel consumption is 6.3 L/100 km, slightly higher due to the added power.
On the road, the MG 5’s suspension—MacPherson struts up front and a torsion beam rear—delivers a firm but composed ride, handling urban potholes and highway cruising adequately. However, it lacks the refinement of the Mazda 3 Sedan, which offers sharper steering and a more planted feel. The MG 5’s steering is light but vague, and body roll is noticeable in corners, making it less engaging for spirited driving.
The Essence Turbo’s sportier tuning and grippier tires improve dynamics, but it’s no hot hatch. Noise insulation is average, with engine and road noise creeping into the cabin, especially at highway speeds. For city commuters, the MG 5 is functional, but long-distance drivers may find it fatiguing compared to rivals.
Interior and Features: Budget or Bargain?
The MG 5’s interior is a blend of value and compromise. The Essence’s leatherette seats and soft-touch dashboard give a premium first impression, but hard plastics on the doors and lower surfaces betray its budget roots. The 10.25-inch touchscreen is responsive, with crisp graphics and wired Apple CarPlay/Android Auto (wireless is absent, unlike the Mazda 3). The 7-inch digital cluster is clear but less customizable than competitors’ displays.
Space is a strong suit. The MG 5 offers 40.2 inches of front headroom and 37.5 inches of rear headroom, competitive with the Corolla Sedan (40.3/37.1 inches). Rear legroom (36.1 inches) is slightly tighter than the i30 Sedan (37.0 inches), but the 512-liter boot is generous, outpacing the Corolla (470 liters). A 60:40 split-folding rear seat adds versatility, though the load floor isn’t flat.
The Essence Turbo ups the ante with a panoramic sunroof, heated front seats, and a 360-degree camera, features typically found in pricier cars. However, the absence of standard ADAS on the Essence (unless you pay extra) and no wireless charging across the range feel like missed opportunities. Build quality is decent but trails Japanese rivals, with some owners reporting creaky plastics and inconsistent panel gaps.
Safety and Reliability
The 2025 MG 5 carries a five-star ANCAP safety rating (2018 protocol), with strong scores for adult occupant protection (81%) and child occupant protection (83%). However, the older testing standard means it hasn’t been evaluated under ANCAP’s stricter 2023 criteria, unlike the Hyundai i30 Sedan (five stars, 2022). Standard safety features include six airbags, autonomous emergency braking, and lane departure warnings, with the Essence Turbo adding more advanced ADAS.
Reliability is a concern. While MG offers a robust warranty, owner reports and industry data suggest mixed performance. Drive.com.au notes that earlier MG 5 models faced issues with DCT reliability and electrical glitches, though MG claims improvements for 2025. J.D. Power data is unavailable, but owner forums on platforms like CarExpert highlight occasional quality niggles, such as infotainment freezes.
Market Context and Competition
The small-sedan segment is shrinking, with the Kia Cerato discontinued in 2025 and the Subaru Impreza sedan fading from showrooms. Key rivals include:
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Hyundai i30 Sedan: Starts at $29,000, offering a polished interior, sharper handling, and a hybrid option (from $36,000). Its 7.4 L/100 km fuel economy (non-hybrid) trails the MG 5, but build quality is superior.
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Toyota Corolla Sedan: From $28,130, with a hybrid variant (from $33,580) achieving 4.2 L/100 km. It’s the segment benchmark for reliability and resale value but lacks the MG’s boot space.
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Mazda 3 Sedan: Starts at $30,320, with premium styling and dynamics but no turbo or hybrid options. Its 6.2 L/100 km fuel economy is comparable to the MG 5.
The MG 5’s higher price narrows its cost advantage, especially as the Corolla and i30 offer hybrid variants for efficiency-conscious buyers. The MG’s larger boot and bold styling (with its aggressive grille and sleek profile) appeal to younger drivers, but its lack of electrification and dated platform limit its edge.
Is the 2025 MG 5 Worth It?
The 2025 MG 5’s reduced range and higher prices reflect MG’s attempt to move upmarket, but the strategy is a gamble. At $28,990–$32,990, the Essence and Essence Turbo offer decent value with generous features, a roomy boot, and a long warranty. The turbo engine adds pep, and the safety suite (especially on the Essence Turbo) is competitive. However, the cuts eliminate the MG 5’s biggest draw—its sub-$25,000 price—and the lack of a hybrid option feels like a misstep in 2025’s eco-conscious market.
For budget buyers, the Essence is a solid pick if you value space and tech over refinement. The Essence Turbo appeals to those wanting a sportier drive, though it’s pricier than a base Corolla Hybrid. Rivals like the i30 Sedan and Mazda 3 offer better polish and dynamics, while the Corolla’s hybrid efficiency and resale value are hard to beat.
If you’re considering the MG 5, test drive it against the Corolla and i30. Its bold looks and feature set might sway you, but the higher price and mixed reliability make it a tougher sell than before. For deal-seekers, waiting for discounts—common with MG models—could sweeten the deal.