New MG2 Entry-Level EV - How It Compares to Top Salary Sacrifice Alternatives
Source: The Electric Car Scheme - Generated Image Approximation
MG has officially confirmed that its next-generation entry-level electric car – widely expected to be called the MG2 – will be unveiled before the end of 2026, with UK deliveries likely starting the following year. Positioned as an affordable urban EV, the MG2 is tipped to launch with pricing from around £20,000, making it one of the most accessible battery-powered cars in its segment.
This new model builds on MG’s growing reputation for value-driven electric cars, following the success of the MG4 and MG ZS EV. However, while excitement is building, buyers looking to get behind the wheel of a compact, efficient electric hatchback may not need to wait. By the time the MG2 arrives, proven alternatives like the Renault 5 E-Tech and other small EVs available through salary sacrifice schemes will already have years of real-world reliability and competitive pricing on their side.
For UK drivers, salary sacrifice schemes – such as those offered by The Electric Car Scheme – are an increasingly attractive way to switch to electric. These schemes allow employees to lease brand-new EVs while saving 20–50% on costs, thanks to income tax, National Insurance savings, and the current 3% Benefit-in-Kind (BiK) rate on electric cars.
For those keen to embrace zero-emission driving sooner, there’s no need to wait until 2027: there are excellent, cost-effective options available right now.
What to expect from the MG2?
While MG has recently been focusing on more premium EVs such as the new IM5 saloon and IM6 SUV, the brand hasn’t forgotten the importance of affordability. Its next big step in that direction will be the MG2, a compact electric hatchback designed squarely for the entry-level EV market.
Positioned as an all-electric successor to the MG3 supermini, the MG2 aims to hit the sweet spot of price, range and practicality for first-time EV buyers. It will target the £20,000 price bracket, competing with the Renault 5, Citroën e-C3 and the forthcoming Volkswagen ID.1.
The car is expected to be around four metres long, using a smaller version of the MG4’s successful Modular Scalable Platform. Battery options are likely to start around 51kWh, giving it a range of well over 200 miles – a clear step up from current entry-level rivals.
Inside, expect a modern, tech-led cabin inspired by the MG3, featuring dual digital screens and MG Pilot driver-assist systems. This combination of value, range and tech could make the MG2 one of the most accessible and desirable small EVs when it finally lands.
Top Salary Sacrifice Alternatives Available Now
With the Benefit-in-Kind (BiK) rate for EVs locked at just 3%, there’s never been a better time to explore electric car salary sacrifice options. Drivers can save 20–50% on the cost of a brand-new EV – making it far more affordable to lease some of the best electric cars 2025 has to offer.
The MG2 is set to be one of the most affordable small electric cars on the market when it finally arrives in 2027. But that doesn’t mean entry-level buyers need to wait. Let’s see how the MG2 stacks up against the key alternatives – and which cars you can drive home much sooner.
| Model | Availability | Price / Target Price | Range (WLTP) | Key Selling Points |
|---|---|---|---|---|
| MG2 | 2027 (expected) | £20,000 (target) | 200+ miles (expected) | Affordable entry-level EV; successor to MG3; modern tech and MG Pilot safety features; compact size |
| Renault 5 E-Tech | Available now | Starts at £22,995 | Up to 249 miles | Retro-inspired styling; modern tech; strong salary sacrifice savings; OTA updates |
| Citroën ë-C3 | Available now | Starts at £22,095 | 198 miles | Comfort-first design; very competitive pricing; practical city EV |
| Volkswagen ID.1 | 2026 (expected) | £20,000–£22,000 (target) | 180–200 miles (expected) | Volkswagen build quality; ID family tech; compact, affordable option |
Why Choose These Proven Alternatives Through Salary Sacrifice
While the MG2 promises to be a compelling option when it finally lands in 2027, there’s a strong case for making the switch to electric driving sooner. Through a salary sacrifice scheme, drivers can access models like the Renault 5 and Citroën ë-C3 today, while benefiting from significant cost savings and convenience.
A salary sacrifice scheme allows you to exchange part of your gross salary for a brand-new electric car, lowering your taxable income. With the current 3% Benefit-in-Kind (BiK) rate, drivers typically save 20–50% compared to leasing privately. These schemes often bundle insurance, servicing, tyres and breakdown cover into a single monthly cost, making budgeting simple and hassle-free.
Choosing a proven, in-market model also means you get immediate access to the latest safety tech, software updates and EV driving experience without waiting years for new models to arrive. With alternatives like the retro-styled Renault 5 E-Tech and the value-driven Citroën ë-C3, you can enjoy the best of both worlds: affordable running costs and early access to zero-emission driving.
For UK drivers ready to embrace electric today, The Electric Car Scheme makes it easy to compare, choose and save on your next EV—no need to wait for what’s coming in 2027.
The Electric Car Scheme can provide between 20-50% off these electric vehicles through salary sacrifice.
Salary Sacrifice Benefits for Family Electric SUVs
For drivers looking at entry-level EVs like the Renault 5, Citroën ë-C3 or the future MG2, a salary sacrifice scheme is one of the most affordable ways to get started with electric driving. Instead of paying out of pocket for a lease or finance agreement, you agree to exchange part of your gross salary for a new car. This simple switch comes with a range of financial and practical benefits:
1. Significant Cost Savings
Salary sacrifice takes advantage of the low 3% Benefit-in-Kind (BiK) tax rate on electric cars, meaning you could save 20–50% compared to leasing privately. Payments are made from your gross salary, reducing your taxable income and National Insurance contributions.
2. All-Inclusive Package
Most salary sacrifice schemes include insurance, servicing, tyres, breakdown cover and road tax in the monthly cost. That means no surprise bills – just one fixed, predictable payment.
3. Access to New Technology
Choosing a scheme gives you access to the latest EV models and features without a long-term commitment. As technology improves, you can upgrade at the end of your term.
4. Lower Running Costs from Day One
EVs are already cheaper to run thanks to lower charging costs compared to petrol or diesel, and these savings are amplified when combined with salary sacrifice discounts.
For those looking to enter the world of electric driving, a salary sacrifice scheme through The Electric Car Scheme can be the perfect starting point – combining financial sense with early access to a greener way of driving.
The Electric Car Scheme Advantage
The Electric Car Scheme gives drivers a 20-50% discount on their lease through EV salary sacrifice. These savings are possible because payments are taken from gross salary before tax and National Insurance, dramatically reducing the total cost of electric car ownership.
The scheme also benefits from the UK government's low Benefit-in-Kind (BiK) tax rate of just 3% for electric cars in the 2025/26 tax year – making an EV significantly more affordable and thus plausible as a starter vehicle.
This is made even better by the new UK Electric Car Grant offers up to £3,750 off qualifying electric vehicles under £37,000, with Band One (greenest) vehicles receiving the maximum grant and Band Two vehicles receiving £1,500. Multiple MG cars are potentially eligible for this grant, and it’s likely that buyers of the MG2 could reap the rewards in 2027.
For employers, The Electric Car Scheme includes Complete Employer Protection, covering early termination, employee resignation, or long-term sickness, ensuring zero financial risk for businesses who support sustainable transport through a company electric vehicle plan.
Accessing the scheme is straightforward. Employers sign up to the Electric Car Scheme, where employees can then browse a curated selection of electric cars, run a salary sacrifice calculator, and order their EV with full servicing, insurance, and maintenance included.
Employers and employees can visit The Electric Car Scheme today to start their EV journey, and take advantage of electric car salary sacrifice. If the Electric Car Scheme interests you, contact your HR team – we have a useful guide helping you to convince your employer.
Are you an employer?
BOOK A DEMOAre you an employee?
SEE AVAILABLE CARSECS GUIDES AND ADVICE
Ready to Go Electric? Your Guides and Tools to a Smooth Switch
-
How the Scheme WorksFind out how salary sacrifice can work for you or your business.
-
The Charge SchemeSave 20-50% on all charging costs through salary sacrifice - at home, the office, or in public..
-
Complete Employer ProtectionAll employers and drivers are protected from day 1.
-
Used Electric CarsDiscover the most affordable way to drive electric. Cars delivered in 14 days.
You might also like…
Last updated: 21/07/2025
Our pricing is based on data collected from The Electric Car Scheme quote tool. All final pricing is inclusive of VAT. All prices above are based on the following lease terms; 10,000 miles pa, 36 months, and are inclusive of Maintenance and Breakdown Cover. The Electric Car Scheme’s terms and conditions apply. All deals are subject to credit approval and availability. All deals are subject to excess mileage and damage charges. Prices are calculated based on the following tax saving assumptions; England & Wales, 40% tax rate. The above prices were calculated using a flat payment profile. The Electric Car Scheme Limited provides services for the administration of your salary sacrifice employee benefits. The Electric Car Scheme Holdings Limited is a member of the BVRLA (10608), is authorised and regulated by the FCA under FRN 968270, is an Appointed Representative of Marshall Management Services Ltd under FRN 667174, and is a credit broker and not a lender or insurance provider.
Copyright and Image Usage: All images used on this website are either licensed for commercial use or used with express permission from the copyright holders, in compliance with UK and EU copyright law. We are committed to respecting intellectual property rights and maintaining full compliance with applicable regulations. If you have any questions or concerns regarding image usage or copyright matters, please contact us at marketing@electriccarscheme.com and we will address them promptly.
