Labour levies push consumer confidence to year-long low
Deloitte's index of confidence among households hit its lowest since early 2024 as figures last week showed unemployment at a four-year high of 4.7 per cent while inflation has surged to 3.6 per cent.
Celine Fenech, a consumer insight expert at Deloitte, said: 'Concerns of a slowing labour market have left consumers worried about job security and income growth prospects, while persistent inflation and a high cost of living have negatively impacted sentiment towards personal debt.'
Ian Stewart, chief economist at Deloitte, added: 'Higher inflation – well above levels in the US and EU – coupled with a weaker jobs market is weighing on consumer sentiment.
'The UK is unlikely to see inflation returning to the 2 per cent rate that prevailed last summer until well into 2026.'
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To help the firm expand, it's looked to its home market of China and in particular fellow SAIC-owned brand, IM Motors. Standing for 'Intelligence in Motion', IM Motors was only founded in 2020 and since then has launched the LS7 and LS6 in China. We saw them at the Geneva Motor Show in 2024 and those two cars have now morphed into the IM6 SUV and this, the new IM5 saloon. Skip advert Advertisement - Article continues below View Compass View Bayon View Range Rover Sitting above MG's regular model line-up – the MGS5 EV and MG4 – the more premium IM5 is pitched as a rival to the Hyundai Ioniq 6, BMW i4, Polestar 2 and Tesla Model 3. And the latter's styling drew plenty of comparisons when the IM5 was unveiled at the Goodwood Festival of Speed this summer. Advertisement - Article continues below Pricing for the IM5 backs up those premium aspirations with the Standard Range model costing £39,450, the Long Range (which we're testing here) coming in at £44,995 and the Performance range-topper priced at £48,495. The trim structure is fairly self explanatory. The IM5 Standard Range comes with a 75kWh battery and a 291bhp rear-mounted electric motor for a maximum range of 304 miles. The Long Range gets the larger 100kWh battery and a more powerful 402bhp motor on the rear axle with an outstanding range of 441 miles - five miles more than a Tesla Model 3 Long Range Rear-Wheel Drive. The Performance variant gets the same 100kWh battery and a dual-motor system that bumps power to a frankly insane 741bhp, while losing some range in the process, to a 357-mile maximum. Can't wait for the new MG IM5 to hit UK showrooms? Configure your perfect MG4 through our Find a Car service now. Alternatively, check out our top prices on used MG4 models... While the IM5's dimensions are actually closer to a BMW i5's than those aforementioned rivals', it's incredibly efficient. Having a huge 100kWh battery helps massively towards the IM5's overall range, but the car's drag coefficient is only 0.226Cd and it sits on an EV-dedicated platform. We weren't quite able to mirror the claimed 4.5 miles per kWh on the more sedate part of our driving route, but we did manage 4.1 miles per kWh - which translates to a still fantastic 410-mile range. Advertisement - Article continues below Skip advert Advertisement - Article continues below The platform that underpins the IM5 is the same as the MG IM6's, and the IM5 Standard Range with its 75kWh lithium iron phosphate battery has a 400V architecture; a maximum recharge rate of 152kW will see a 10 to 80 per cent top-up take 26 minutes. Despite the battery's bigger capacity, models with the 100kWh NMC (nickel, magnesium cobalt) pack get an 800V base, which allows the same recharge to take just 17 minutes with a maximum 396kW charging speed. Unlike the IM6, which gets adaptive air suspension in its range-topping Launch Edition trim, the IM5 saloon is fitted with passive springs and dampers whatever specification you choose - although we were told the suspension is tweaked in line with the changes in weight and power between the single-motor, rear-wheel-drive models and the dual-motor variant. Beyond this, the IM5 and IM6 were subject to further chassis development at Longbridge in the West Midlands to make them more suited to the driving styles of UK customers than the Chinese market. To get the full picture, we tried both the single-motor and dual-motor IM5. Starting with the single-motor IM5 Long Range, the first thing we noticed after testing the IM6 was the ride. It felt no worse than the IM6's air suspension, possibly a side effect of the IM5 weighing around 200kg less than the SUV and sitting on smaller 20-inch wheels (though the IM5 dual-motor gets 21-inch rims). The IM5 can sometimes thump into big potholes, although at high speeds the damping felt very well set up, erring just on the right side of comfortable without being too floaty. Low-speed comfort is decent too, with speed bumps smothered successfully. Even when we jumped into the dual-motor car with its larger wheels, we couldn't sense much of a change in the ride quality. Advertisement - Article continues below Skip advert Advertisement - Article continues below The IM5 is a quick car in any trim and most buyers will be perfectly happy with the performance in the single-motor version. The 75kWh-battery model's sub-seven-second 0-62mph time is nothing to be sniffed at, although our car's 402bhp motor enabled some properly quick progress, with enough power to sometimes break traction at the rear even with the electronic stability control turned on. There's a little bit of squatting as the single-motor version puts its power down, however it feels pretty natural in the IM5, with a steady build-up of torque rather than an immediate lump. If you're heavy with your right foot, the dual-motor model can be much more frantic, as you might expect, but overall, traction is far better than in the rear-wheel-drive model. While we were mesmerised by the MG4's surprisingly good driving dynamics when it was launched, the IM5's rivals include the Tesla Model 3 and entry-level BMW i4 eDrive35, so a certain level of engagement is expected. The IM5 drives better than the IM6 for starters thanks weighing less and having a lower centre of gravity, although it's not the electric sports car you might hope it would be - especially with up to 741bhp on tap. Advertisement - Article continues below Skip advert Advertisement - Article continues below You sit lower in the IM5 than in the IM6, but the driving position is very good. Visibility to the front is excellent, too, but the view to the rear is a joke, thanks to a tiny window and miniature rear-view mirror. For everyday use, the steering is perfectly acceptable, and the shape and size of the steering wheel are spot on. But what immediately makes you realise this is no sports car is the steering feel. We're told it has been specially calibrated by MG's UK development team, but that just makes us wonder how vague and light it must be in the Chinese cars. Push hard and you'll struggle to enjoy guiding the car through bends, which is a shame because there's precious little body roll, and the double-wishbone front suspension and multi-link rear combine to make the car extremely keen to change direction. MG has also taken measures to give the IM5 the refinement you'd expect of an executive saloon. Open the front doors and you'll spot sound-deadening material wedged into the front wing, for example. There's also double-layer soundproof glass and a double-glazed panoramic sunroof to cut wind and road noise at speed, which the IM5 does effectively. Like the polished suspension set-up, the seats are geared more towards comfort than sporty driving. Advertisement - Article continues below Skip advert Advertisement - Article continues below The selection of driving modes includes Comfort, Eco and Sport settings with an additional Custom mode to tweak things such as the steering weight and throttle response – but we'd recommend keeping the steering in Sport, because it's far too delicate in other modes. You can also adjust the brake regeneration, but the IM5 doesn't offer a one-pedal mode, although MG says it may consider adding it later on. The IM5's interior is pretty much the same as the IM6's. As in the SUV, there's a choice of a white or grey colour palette with a faux-leather upholstery for both. We were quite shocked to open the IM5's door for the first time and be greeted with bespoke crushed velvet floor mats, but we're told they're here to stay. With the same dashboard as the IM6, the IM5 comes with a 10.5-inch touchscreen on the centre console, which is tilted too far backwards - this isn't an issue in the SUV where you sit a little more upright. The infotainment system's screen (like the 26.3-inch dashtop-mounted screen) is impressive, with quick response and loading times. The design of the menus is also simple to understand and the customisable features for lighting and displays are decent too. But we're less impressed by the integration of climate controls into the screen, because they're not readily available. The interior space doesn't feel too dissimilar to the SUV's, with plenty of headroom all round. Kneeroom for rear-seat passengers is good too, although there's less room under the front seats for feet than in the IM6. Back-seat passengers don't get too much in the way of features - there's a USB-C port on the back of the centre console, a flip-down central armrest with cup-holders, and a pouch on the back of the front seats, but that's about it. MG has given the IM5 a 'frunk', but its capacity is only 18 litres, so it's good for charging cables and little else. The 457-litre boot has a fairly narrow opening but is pretty deep and comes with a flat floor. Model: MG IM5 Long Range Price: £44,995 On sale: Now Powertrain: 100kWh battery, 1x e-motor Power/torque: 402bhp/500Nm Transmission: Single-speed auto, rear-wheel drive 0-62mph: 4.9 seconds Top speed: 136mph Range: 441 miles Max charging: 396kW (10-80% in 17 mins) Dimensions (L/W/H): 4,931/1,960/1,474mm Share this on Twitter Share this on Facebook Email
