After gaining its independence from Rover and BMW, MG struggled to survive on a competitive market where big guns showed new sporty vehicles addressed for the younger generation, threatening the existence not only of the ZS Sedan on the market but the brand itself.

The MG ZS was the tuned version of the Rover 45, a car that shared its underpinnings with the Honda Concerto. It was developed and launched soon after BMW sold Rover in 2000.