It’s third time’s a charm for the MG3 as the all-new model of the compact hatchback launches in New Zealand – and faces three impressive rivals.

MG Motor NZ has just launched the third generation of the popular Chinese hatchback with a major makeover of the exterior, interior and powertrains.

According to MG Motor NZ country manager, Arek Zywot, the all-new MG3 is “smarter, larger and safer”.

The brand is introducing two powertrains; a 1.5-litre petrol paired with iCVT, and a 1.5-litre Hybrid+ has a four-cylinder engine that charges while you drive paired with a three-speed transmission.

The all-new MG3 starts from $25,990 for the petrol Excite, to $27,990 for the Essence, which has $5000 worth of extras.

Their 1.5-litre engine produces 81kW of power and 142Nn of torque. It has a combined fuel consumption of 6.0l.100km.

The Hybrid+ produces 75kW/128Nm but combined with the hybrid engine that equals 155kW. It has a combined fuel efficiency of 4.3l/100km.

The Hybrid+ Excite is priced from $29,990 and the Essence is $31,990.

So what are the all-new MG3’s nearest competitors? The top three have both petrol and hybrid versions, starting with the popular Toyota Yaris, next is the Honda Jazz and its nearest competitor when it comes to looks is the Suzuki Swift.

MG Motors NZ has sold 2814 of the previous generation but expects this model to make a big impression in the small car market.

However, the Chinese brand realises that the 2024 new vehicle market is in decline, especially the passenger segment but on the upside, hybrid sales are increasing.

“Our market in New Zealand is going through a slight change, the removal of Government subsidies for PHEV and EV vehicles and introduction of road tax,” Zywot told the media at the Auckland launch.

“That’s changing the scoop of the car market. Customers are confused, as they went from getting money [rebates] to paying money [RUC], it may take some time to understand … we will have to deal with it.”

To ‘deal’ with that, it will showcase the developing style of the third-gen MG3 that combines European and Japanese vehicle looks, both inside and out.

MG Motor NZ senior product manager, Akshat Ahuja, told the media that the only similarity between the previous model and the new MG3 is “just the name, the rest is all new”.

“The MG3 showcases the new design language for the brand. It has a new grille, LED front headlights, and the MG badge now sits on the bonnet, not in the grille,” he said.

The MG3 has 16in alloys as standard, while the rear has a spoiler and LED lights. Inside, the MG3 is “polished and refined”, said Ahuja.

It has a 7in high definition virtual cluster that’s now digital not analogue (“unique in its segment” said Ahuja.)

It has a 10.24-inch info screen (the biggest in its class), steering wheel controls and a 360-degree camera.

Post-briefing, we drove the Hybrid+ Essence for a quick two-hour round trip that combined motorway driving, plus country and winding roads.

Not only was the performance and handling impressive but the overall package makes it a strong contender over the Yaris, Jazz and especially the Swift.

First, it’s a stylish product that is sophisticated inside and out, but more importantly, it has a seven-year unlimited warranty – unlike its competitors of between three to five years.

I also think many potential MG3 buyers will step up to the hybrid+ due to the fuel efficiency.

Stay tuned.