The Australian new car market is about to get a fresh contender as MG prepares to launch the 2026 MG7 sedan—a direct rival to the Toyota Camry. While the Camry has long dominated the mid-size sedan segment, MG’s latest offering promises a blend of style, performance, and value that could shake up the status quo. However, unlike the Camry, which is exclusively available as a hybrid in Australia, the MG7 will initially launch with a detuned turbo-petrol engine, with hybrid variants still under consideration for future releases.
MG7: What We Know So Far
Overview and Positioning
MG has confirmed that the MG7 will be its largest passenger car ever offered in Australia, following the recent launch of the Corolla-sized MG5. The MG7 is designed to go head-to-head with the Toyota Camry, offering similar dimensions and a more sporty, fastback-inspired design. Its sleek profile, muscular rear haunches, and liftback tailgate set it apart from the more conservative Camry, potentially attracting buyers looking for something a little different in the mid-size sedan segment.
Engine and Performance
Initially, the MG7 will be available in Australia in two variants—both powered by a 2.0-litre turbocharged petrol engine. In the Chinese market, this engine produces 192kW and 405Nm of torque, but for Australia, it has been detuned to 170kW to comply with local regulations and market preferences. Both variants will be front-wheel drive and paired with a nine-speed torque-converter automatic transmission, the same unit expected in MG’s upcoming QS seven-seat SUV.
Design and Features
The MG7’s exterior styling is one of its standout features, with a fastback silhouette and a roofline that tapers towards the rear, giving it a more dynamic look than most rivals. Inside, buyers can expect a well-equipped cabin with features such as leather seats, power-adjustable front seats, a 10.25-inch digital instrument cluster, and a 12.3-inch media screen with Apple CarPlay and Android Auto compatibility. Overseas models also offer a choice of 18- and 19-inch wheels, LED headlights and taillights, and a suite of advanced safety technologies.
Price and Value
Pricing for the MG7 in Australia has not yet been confirmed, but MG has a history of undercutting mainstream rivals from Japanese and Korean brands. If this trend continues, the MG7 could offer significant value for money, potentially starting well below the current Toyota Camry Hybrid, which is priced from around $42,000 drive-away.
Why No Hybrid at Launch?
Market Strategy
MG has indicated that it wants to offer a hybrid version of the MG7 specifically for the Australian market, but this variant is not ready for launch. The company has cited ongoing evaluation of both petrol and hybrid options, suggesting that a hybrid or plug-in hybrid variant could be added in the future. MG’s recent HS mid-size SUV offers a plug-in hybrid system with a 1.5-litre turbocharged petrol engine and electric motor, delivering up to 120km of electric-only range from a 24.7kWh LFP battery. It is likely that a similar system could be adapted for the MG7, but for now, buyers will have to settle for the turbo-petrol option.
Regulatory and Policy Context
The Australian government has recently introduced the National Vehicle Efficiency Standard (NVES), which came into effect in January 2025. This standard is designed to encourage the supply of more fuel-efficient vehicles, including hybrids and electric vehicles, by setting targets for average emissions per kilometre for new vehicles sold by each manufacturer. The NVES is technology-neutral, meaning it applies to petrol, diesel, hybrid, and electric vehicles, and is intended to bring Australia in line with global standards.
While the MG7 will initially be offered only with a petrol engine, the introduction of the NVES is likely to incentivize MG and other manufacturers to bring more efficient options to market in the near future. This could see the MG7 hybrid or plug-in hybrid variants arriving sooner rather than later, especially as the Camry continues to dominate the segment with its hybrid powertrain.
How Does the MG7 Compare to the Toyota Camry?
Below is a comparison of the key specifications of the 2026 MG7 and the current Toyota Camry:
| Feature | MG7 (2026, Australia) | Toyota Camry (Hybrid, Australia) |
|---|---|---|
| Engine | 2.0L Turbo Petrol | 2.5L Hybrid (Petrol + Electric) |
| Power | 170kW (detuned) | 131kW (petrol) + 88kW (electric) |
| Transmission | 9-speed Automatic | e-CVT |
| Drivetrain | Front-wheel drive | Front-wheel drive |
| Length | 4884mm | 4885mm |
| Width | 1889mm | 1840mm |
| Height | 1447mm | 1445mm |
| Boot Space | Liftback tailgate (larger) | 524L (sedan) |
| Fuel Economy | Not yet confirmed | ~4.2L/100km (combined) |
| Price (est.) | TBA (likely under $42,000) | From $42,000 |
Government EV and Efficiency Incentives
Federal Initiatives
The Australian government has introduced several initiatives to encourage the uptake of more efficient vehicles, including the National Vehicle Efficiency Standard (NVES) and funding for electric vehicle infrastructure through the Future Fuels Fund. The NVES aims to reduce CO₂ emissions by setting average emissions targets for new vehicles sold by each manufacturer, while the Future Fuels Fund supports the rollout of public charging stations and fleet electrification.
State and Territory Incentives
State and territory governments also offer a range of incentives for electric and low-emission vehicles, although these are generally not available for hybrid or plug-in hybrid vehicles. For example, the ACT offers zero stamp duty and free registration for the first two years for zero-emission vehicles, while Western Australia and Tasmania offer rebates for battery electric vehicles. However, these incentives do not apply to the MG7 in its current petrol-only form.
Below is a summary of key government incentives for low-emission vehicles in Australia (as of June 2025):
| State/Territory | Incentive Type | Amount/Details | Eligible Vehicles |
|---|---|---|---|
| ACT | Stamp Duty Exemption | $0 for ZEVs | Battery/Hydrogen EVs |
| ACT | Registration Discount | Free for 2 years, then discounted | Battery/Hydrogen EVs |
| WA | EV Rebate | $3,500 for new EVs up to $70,000 | Battery EVs |
| TAS | EV Rebate | $2,000 for new EVs (limited numbers) | Battery EVs |
| TAS | Home Charging Loan | $500–$10,000 interest-free | Battery EVs |
| QLD | EV Rebate (ended Sep 2024) | Was $3,000–$6,000 for EVs up to $68,000 | Battery EVs |
FAQs
1. Will the MG7 be available as a hybrid in Australia?
Not at launch. The MG7 will initially be offered with a 2.0-litre turbo-petrol engine. MG is evaluating a hybrid or plug-in hybrid variant for future release.
2. How does the MG7 compare to the Toyota Camry?
The MG7 is similar in size and features to the Camry but offers a more sporty design and, at launch, only a petrol engine. The Camry is currently only available as a hybrid in Australia.
3. Are there any government incentives for buying the MG7?
No. Current government incentives are only available for zero-emission vehicles (battery or hydrogen electric), not for petrol or hybrid vehicles like the MG7.
Read More Tesla Robotaxi Launched: World’s First Self-Driving Car with Next-Gen AI Features