Shanghai-MG is working on an MG coupe for the China car market. The coupe will be called MG4 and it will be based on the MG5 hatchback. The reports have been confirmed by Shanghai-MG ‘senior manager’ Li Peng, who also said the MG4 will debut as early as next year.

The MG4 Coupe will be powered by the new 135hp 1.5 turbo that also powers the MG5 1.5T and by the 160hp 1.8 turbo that powers the MG6. The new MG4 is aimed at young professionals with a bit of cash to spare who are not yet ready to start a family and buy a sedan or SUV.

The MG4 Coupe will create a new market segment. There are rumors however that MG won’t be alone for very long. Volkswagen is said to be working on a Volkswagen Lavida coupe and Mazda on a Mazda 3 coupe. Exciting times ahead…