MG will launch a saloon version of its MG5, according to Chinese media. The MG5 saloon will introduce an all-new engine and transmission, developed in-house by SAIC.

The new engine will be a turbocharged 1.5-litre four-cylinder petrol engine.

Although little is known about the new engine, it is thought to develop around 127bhp and 147lb ft. Economy and performance are expected to be improved over the wheezy 108bhp unit offered in the MG5 hatchback.

The engine will be offered with an all-new seven-speed dual-clutch automatic gearbox which will be produced at SAIC’s facility in Anting, near Shanghai.

Autocar understands a decision is yet to be made to launch the MG5 in Europe; the company was initially enthusiastic about the idea, but has subsequently talked down any potential launch date. Instead bosses consider the forthcoming MG CS SUV to be a more profitable and popular model.