Chinese car maker MG was facing potential legal action from its Australian dealer network over attempts to retrospectively increase vehicle prices well after sales contracts had been signed, according to claims reported by the Australian Financial Review.
The Australian Automotive Dealer Association (AADA) had threatened to take MG’s parent company SAIC Motors to the Australian Competition and Consumer Commission, the AFR reports, citing confidential legal letters.
According to the AFR, the letters show the AADA had asked MG to explain why dealers were reporting the company was “unilaterally purporting to increase the agreed wholesale price of vehicles up to approximately 120 days after a contract of sale for the vehicles in question has been entered into”.
The dealer association described the move as “unjust and unfair”, the AFR claims, escalating tensions between MG and its retail network during a period when the brand’s sales have declined 18% from 50,592 vehicles in 2024 to 41,298 in 2025.
Following the dealer concerns, MG issued a bulletin to its dealership network confirming that “once a vehicle has been invoiced to a dealer, no future accounting adjustments will be made to the dealer invoice price”, according to the AFR report.
The AADA declined to comment on the dispute when contacted by the AFR.
Join the conversation