The family-owned business, Eric Stead (Garages) Ltd based in Ecclesfield, will cover the north of Sheffield, while independent dealer Grant & McAllin in Rother Valley Way Holbrook, will cover the south side of the city.
The two new dealerships are on target to open by the end of August, ahead of the launch of the all-new MG3 supermini.
The former MG Rover outlet, originally founded in 1963, has a 10-bay workshop, a modern new car showroom and employs 23 people.
Meanwhile, four generations of the same family are behind Grant & McAllin, which is now run by Lee Atack, and is one of the oldest automotive businesses in South Yorkshire.
In 2007 Grant & McAllin moved to a £2.2 million site in Rother Valley Way, just minutes away from Junction 31 of the M1. The 1.5 acre site includes a 10 bay workshop and a 25-car showroom.
The firm’s managing director, Trevor Stead said: ‘MG has always been an important brand for us and it’s steeped in history and heritage. But it’s the MG of the future that really excites me – I can honestly say that winning the MG franchise was one of the proudest and most exciting days of my life.’
Lee Atack said: ‘MG has always been a brand that people love and respect and I share the same feelings. I can’t wait to start selling the new breed of MGs. I think that the MG6 is a highly competitive vehicle and from what I’ve seen of the MG3 it’s a brilliant package.’
He added: ‘Now everyone in Sheffield will have a local dealer and I look forward to working alongside Trevor in such exciting times.’