The MG 4 is one of Australia’s top 10 selling EVs. Photo: MG Motor Australia.
MG has become the second car brand to add a condition to its extended warranty package that requires customers to only service their cars with an authorised dealer.
A similar move by Mitsubishi five years ago raised concerns it might breach Australian consumer law.
MG will continue to offer a “standard warranty period” of seven years and unlimited kilometres, but in an update for the 2026 financial year, non-commercial customers can now access an extended period of 10 years or 250,000 km (whichever comes first).
However, this only applies “provided all scheduled servicing is completed at an authorised MG dealership”.
“Our new FY26 warranty program reflects our commitment to supporting owners at every stage of their journey, from the first drive to long-term ownership, with greater choice and enduring value,” MG Motor Australia head of aftersales Kenneth Lu said.
MG has also adjusted pricing for the new financial year, meaning its new HS Super Hybrid SUV now costs $50,990 driveaway. Photo: MG Motor Australia.
Mitsubishi broke ground on adding such a condition to its 10-year or 200,000 km extended warranty in 2020, which was also conditional on the vehicle being serviced only by authorised Mitsubishi dealers and service centres.
The Australian Competition and Consumer Commission (ACCC) initially opened an investigation after it received a “large number of submissions from independent mechanics, aftermarket parts suppliers, members of the public and associations”.
“While a number of consumers will no doubt value a longer warranty, we recognise the concerns that the requirement to use Mitsubishi dealers and service centres may have an impact on independent mechanics’ ability to provide competition,” ACCC commissioner Stephen Ridgeway said at the time.
The commission said such a warranty could count as “exclusive dealing”, when “one person trading with another restricts the other’s freedom to choose with whom, in what or where it deals”.
The ACCC investigated Mitsubishi’s 10-year warranty offering soon after it was first announced. Photo: James Coleman.
Ultimately, however, it allowed Mitsubishi to go ahead on the grounds “there is no basis … to conclude the notified conduct has the purpose, effect or likely effect of substantially lessening competition”.
In response to questions from Region, ACCC wouldn’t be drawn on MG’s specific case, but did offer general rules around car warranties.
The spokesperson confirmed warranties were allowed to come with conditions relating to servicing and repairs, but businesses must also comply with “automatic guarantees under the Australian Consumer Law regardless of any other warranties they give or sell to consumers”.
These guarantees “may continue to apply after a manufacturer warranty period has expired and regardless of whether an independent operator has serviced or repaired the product”.
Warranties don’t void consumer law. Photo: Thomas Lucraft.
“If a business fails to meet these guarantees, consumers have a right to a remedy, which may include a refund, a repair or replacement, depending on the circumstances,” the spokesperson added.
As for how long these guarantees last, that’s tricky because the ACCC says it’s an “unspecified but reasonable time”.
A recent case study was Mazda Australia, which was fined $11.5 million by the Federal Court in January 2024 for “making false or misleading representations to nine consumers about their consumer guarantee rights”.
According to the ACCC, the brand had “ignored or rejected requests” by nine customers for a refund or replacement vehicles after their own had gone in multiple times for repairs (one vehicle received three engine replacements).
The cars included six models purchased between 2013 and 2017 and ACCC first began proceedings against Mazda in 2019 – making the oldest car six years old.
In the end, Mazda only offered to refund a portion of the vehicle’s purchase price, or offered a replacement vehicle only if the consumer made “a significant payment”.
“All of the consumers were given the run-around by Mazda while it engaged in evasions and subterfuges, provided appalling customer service,” ACCC deputy chair Catriona Lowe said.
In addition to the fine, Mazda was ordered to pay a total of $82,000 in compensation to some of the consumers.
Mazda has also been trouble for giving customers “the run-around” on warranties. Photo: James Coleman.
On the one-year anniversary of the judgement in March 2025, the Australian Automotive Aftermarket Association (AAAA) issued a reminder “wake-up call to all car manufacturers”.
“Too often, we see manufacturers and dealers telling customers they have no right to a refund or replacement under a warranty, despite the clear protections provided under the ACL,” AAAA CEO Stuart Charity said.
“Manufacturers cannot mislead consumers by implying that their only option is repair, nor can they refuse to honour these rights based on arbitrary warranty terms.”
