MG boss confirms smaller ‘MG2’ is coming

MG will launch a B-segment hatchback in the next 18 months to take on the Renault 5 and Citroen E-C3.

The firm’s head of product and planning David Allison told EV Powered that a cheaper, more compact model was a clear opportunity to further broaden its burgeoning EV line-up and would help it maintain growth in coming years.

MG has just launched the MG4 Urban which is priced similarly to current B-segment hatchbacks but is actually larger than the pre-existing MG4 family car.

The next model, widely expected to be called MG2, will arrive in 2027 and be physically more similar in size to the Renault and Citroen as well as models such as the BYD Dolphin Surf and Hyundai Inster.

However, given MG’s reputation for value-focused positioning, it’s likely to be priced closer to the inbound Renault Twingo, Nissan Pixo and Volkswagen ID.1.

Speaking to EV Powered at the launch of the MG4 Urban, pictured below, Allison said that the idea of a true B-segment model had been identified as an opportunity for the brand “for a long, long time”.

He said: “There is a car that will come in smaller than the MG4 and MG4 Urban. It’s in development now and we won’t see it until next year.”

Allison said that the addition of a smaller, more city-friendly model would help MG establish sustainable growth after several years of incredibly rapid expansion.

While the brand has recently launched several more expensive models, including the premium-positioned IM5 and IM6, he said that a new cheaper entry-level car was part of a wider development plan.

“What that car does is it gives us a really nice option in addition to existing cars,” he said. When that car comes, it will be completely different to the MG4 Urban in terms of its look, in terms of its design and in terms of its position. And that’s how we continue to evolve. That gives us the ability to sell something else to somebody else.”

The MG2 is likely to use the same E3 platform which underpins the MG4 Urban. In the larger model, it features a 201bhp front-mounted motor and a choice of 43kWh or 54kWh batteries for up to 258 miles of range.

With the MG4 Urban priced from around £23,500, it’s likely that the MG2 will start in the region of £20,000 when it arrives in 2027 and could feature toned-down technical specifications.

Asked about MG’s wider product strategy, Allison said he hoped the radical Cyber X could make it to production and add another strand to MG’s product offering.

The boxy SUV made its public debut at the 2025 Goodwood Festival of Speed and hinted at an entirely new direction for the brand alongside its mainstream offering and the premium IM models.

He noted: “Reception [at Goodwood] was really good, with lots of positive comments.

“I think conceptually that car – if the real life product is similar – gives us the ability to sell that kind of car to somebody else. That’s potentially a car that is similar in size to a ZS but it’s designed for someone who wouldn’t buy a ZS because they don’t like the look of it or they don’t like the feel of it. Whereas a Cyber X-style car gives us the opportunity, again, to sell to a different type of customer.”