MG Gains Strength in the Hungarian New Car Market

The MG brand continues to gain ground in the Hungarian new car market: its market share is on the rise and the dealer network is still expanding, according to importer MG Motor Hungary.

At the beginning of October, a new dealership started selling MGs in Szekszárd, S Hungary, expanding the network to 25 dealerships, which the importer says now provides nationwide coverage. At the same time, two more dealerships will open soon in Tatabánya and Veszprém, also in Transdanubia, in response to market demand, it said.

The British-origin MG (Morris Garrages) brand entered the Hungarian market in 2022, after the Duna Autó group was awarded the Hungarian import rights of the brand in Hungary. The MG is being repositioned in Europe by its owner, China's SAIC Motor Corporation, which has become one of the first in Central and Eastern Europe to market its cars in Hungary as part of its expansion strategy. The importer then set a medium-term target of 3% market share.

Since then, growth has been on track, the company said in response to a question from MTI, calling the 3% target still realistic.

By the end of September this year, 1,318 MGs had been sold in Hungary by dealerships in the network, giving MG a 1.48% share in the two years since it entered the market. Last year, a total of 1,098 vehicles were sold in the full year, giving it a share of 1.32%.

The importer attributes the brand's success to the good value for money of its models and the fact that it offers a complete range of powertrains.

Contrary to the trend in Hungary, MG sales are dominated by private buyers, who account for 60% of sales, compared with 40% of corporate buyers. In their experience, cars with internal combustion engines are still the most popular with private buyers, with the best-selling model being the petrol MG ZS, a family-friendly SUV. The buyers of the brand's environmentally-friendly electric models are also predominantly corporate.

In 2023, MG Motor Hungary had a turnover of nearly HUF 12 billion, with a profit of HUF 28.38 million.