What's the difference?
Honda used to be a big deal in Australia back in the 1990s and early 2000s but I wouldn’t be surprised if it’s moved off your radar in recent years.
The Japanese carmaker has seemingly fallen out of favour in the last few years following its move to an agency retail model which negates haggling on price with dealers.
However, Honda is making a resurgence and it’s putting a heavier focus on hybrid power.
The ZR-V small-to-medium SUV has been updated for 2026 and picks up new, more affordable hybrid trims, among other minor tweaks. Read on to see if this car should be on your shortlist.
Typically appealing to those seeking quality engineering and tech without feeling the need to make a boastful badge statement, Skoda is a low-key, ultra-confident brand.
On sale here since 2018, the Skoda Karoq is a comparatively small fish in one of the most hotly contested segments in the Australian new-car market, namely medium SUVs, the leading trio consisting of the Toyota RAV4, Nissan X-Trail and Mitsubishi Outlander.
To increase its appeal against these and other high-profile contenders Skoda Australia has introduced a new entry-level Karoq designed to hit the Goldilocks zone between attractive standard specification and sharp pricing. CarsGuide was invited to its local launch.
The Honda ZR-V has always been an engaging and fun car that’s the right size for many people. The frugal hybrid powertrain has always been the pick too.
It’s great that Honda has finally introduced more affordable hybrid trims with this update which addresses one of my biggest criticisms of this car previously.
If you’re willing to forgo some luxury features, this entry-level hybrid trim is a fantastic car that still offers enough creature comforts to be driven daily.
Hopefully Honda has some renewed sales success with this car as I believe it’s a clear benchmark for the segment.
This new entry-level Karoq gives the already accomplished mid-size SUV an even sharper value-for-money edge. On top of that it's space efficient, hugely practical and economical. Safety's up to speed, the ownership package is solid and it's a quiet, refined drive. Before joining the RAV4 queue, we'd suggest giving this Skoda some serious thought.
Note: CarsGuide attended this event as a guest of the manufacturer, with accommodation and meals provided.
The exterior of the ZR-V has always left me feeling quite… meh. It’s a mundane and generic look that doesn’t stand out from the crowd, but that's no bad thing because not everyone wants a flashy car.
That said, I’m still not a fan of the front grille, which makes it look like this car has a moustache.
The dark red paint looks nice, though when it’s paired with these generic-looking grey alloy wheels and black wheel arch cladding, it cheapens the look. The top-spec e:HEV LX looks more attractive.
Inside, it’s similarly standard and doesn’t break the mould. Everything is where you’d expect it to be, which is great for functionality.
The wildest part of the interior is the centre tunnel which features a push-button gear selector and a split console section including a small storage area underneath that’s big enough for a phone.
Looking around, it’s a sea of black finishes, which is a bit boring. However, I do like the mesh panel that spans the dashboard and houses the air vents. It’s a premium touch.
Skoda's distinctively broad, vertically slatted grille stands the brand apart, and even after six years in market the Karoq looks crisp and contemporary with chiselled character lines and jagged head and tail-lights blending successfully with more gently curved surfaces along the car's flanks and turret.
It might be a subconscious side-effect of knowing Skoda is part of the VW Group, but I can't help seeing hints of Tiguan here and there, particularly around the side windows and rear end.
But cool touches like aero-influenced inserts in the 18-inch alloy rims reinforce the Karoq's individual look.
Move to the inside and while the 8.0-inch central media touchscreen and 8.0-inch digital instrument display are on the pace the overall design shows the car's age.
Quality trim materials lift the tone, the cloth seats with contrast stitching look (and feel) great, but the understated dash design in particular is 'traditional', the vibe accentuated by liberal use of piano black highlight elements.
That said, the mix of on-screen functions and physical controls works well ergonomically and the leather-trimmed, partially-perforated, flat-bottom steering wheel is hard to fault.
In base-model form, it’s expected the ZR-V will have fabric upholstery. However, the seats still feel premium and are deliciously padded. They’re manually adjusted but I was still able to find a good driving position with ease.
One feature I was looking for was heated seats, especially on these brisk Melbourne mornings. It’s rare for a car with fabric seats to get heated seats, though. If you want them that badly, they’re available on higher trims.
Ahead of the driver is a leather-wrapped steering wheel which feels lovely. I particularly like the tactile feel of the buttons and switches.
The digital instrument cluster is clear and crisp. It offers multiple views to customise it, as well as a range of infographic pages to cycle through. I wish you could see the fuel consumption and hybrid system graphics at the same time, but thankfully they’re just a single scroll away from each other.
Moving across, the central touchscreen multimedia system is looking a small in 2026, measuring only 9.0 inches, although it’s still high-resolution and the colours are vibrant.
It appears computing power has been given a boost along with the integration of Google Built-in, as jumping from menu to menu has never been snappier.
Speaking of Google Built-in, it’s great to have the flexibility of using the integrated Google Maps and apps like Spotify and Apple Music, without needing your phone.
However, it’s still nice having Apple CarPlay and Android Auto, though the latter is strangely only offered in wired form. With my iPhone 15 Pro Max, the wireless connection was rock solid, though known interference points did cause CarPlay to stutter.
It’s great to see Honda retaining a physical climate control cluster as it’s intuitive to use. The dials in particular have a satisfying click when twirled.
In terms of storage there are two cupholders, two USB-C ports, a big centre console box, as well as an adequately sized glove box. It’s worth noting this trim level forgoes a wireless charger, meaning you’ll need to plug in to charge your phone.
Moving to the second row, there’s a surprising amount of space, even for adults. At a leggy 182cm, I have plenty of legroom and headroom.
You would easily be able to get two adults in the second row, though you’d be pushing it to fit three as the middle seat is narrow and raised. Kids will be fine, though.
Adding to the annoyance of the middle rear seat, the seat belt is mounted from the roof, which can obstruct rear visibility.
In terms of amenities there are air vents on the back of the front centre console, two USB-C ports, map pockets on the back of each front seat, as well as a fold-down centre armrest with cupholders.
There are also ISOFIX points on the two outboard seats, as well as top-tether child seat anchorages on all three rear seats.
Around the back it’s expected the entry-level hybrid will feature a manually operated tailgate. It’s light to open and close.
With the rear seats upright there’s 380L of boot space available, which is decent for this size of car. This figure includes a small underfloor section.
If you fold the rear seats the boot space expands to 1312L, which is cavernous for this type of car. The rear seats cleverly fold forwards and down at the same time, creating a seamless flat floor.
Boot-related amenities include a number of hooks, a 12V socket plus some lights. As is the case with many hybrids, the ZR-V e:HEV doesn’t come with any spare wheel. You need to make do with a tyre repair kit, which is nowhere near as handy if you have a proper puncture away from a tyre repair shop.
In terms of dimensions, at just under 4.4m long, a bit more than 1.8m wide and a fraction over 1.6m tall the Karoq is a relatively small medium SUV.
Yet, its 2638mm wheelbase means there's enough space between the axles for generous accommodation front and rear with enough room left over for a decent boot.
There's ample room for me, at 183cm, in the front with plenty of breathing space between driver and co-pilot. Not to mention heaps of storage including big door bins with room for large bottles, an open area in the centre console under an extending and height-adjustable centre armrest, various coin and oddments slots, a good size glove box, a broad lidded dash-top compartment and a drop down box near the driver's right knee.
Move to the rear, and sitting behind the driver's seat set to my position, I've got good head, leg and shoulder room. Best for two adults, although three would be possible for (cozy) short trips.
Three up to teenage kids will be fine back there, but if your kids are in a capsule, child seat or booster you'll be good with two but three will be a bridge too far.
Again there are door bins with enough room for oversize bottles, three cupholders in the fold-down centre armrest (one is 'venti'-sized) as well an oddments tray at the back of the front centre console and map pockets on the front seat backs. Adjustable ventilation is another plus.
With all seats up the Karoq offers a healthy 588 litres (VDA) of storage space, expanding to 1810L with the 60/40 split rear seat folded. A rear seat 'ski-port' style door also increases flexibility.
There are numerous bag and tie-down hooks as well as thoughtful storage spaces around the boot space. A full-size (speed limited) spare sits under the floor and while the tailgate misses out on power assistance, there's a typically useful dangling grab handle to help with closing.
For those keen on towing the FWD Karoq is rated up to a 1.5-tonne braked trailer (750kg unbraked).
Honda has shuffled the ZR-V line-up for 2026, decreasing the petrol variants to a single, entry-level trim, while increasing the hybrid grades from one to three.
On test here is the ZR-V e:HEV X, which is the cheapest hybrid. It’s priced from $43,400, drive-away, which is $3500 more than the base petrol trim and $8500 less than the top-spec hybrid option.
This is priced keenly against entry-level versions of the Hyundai Kona Hybrid and Toyota Corolla Cross Hybrid, while undercutting the Nissan Qashqai e-Power hybrid.
For the price you get standard 18-inch alloy wheels, adaptive LED headlights, a 10.2-inch digital instrument cluster, a 9.0-inch touchscreen multimedia system with wireless Apple CarPlay and wired Android Auto, dual-zone climate control and cloth upholstery.
Now standard across the ZR-V line-up is Google Built-in which allows for Google Maps integration, the Google Assistant, plus you can download a number of apps, including Spotify, from the Google Play Store.
If you’re after features like a power tailgate, premium sound system, wireless charger, leather upholstery, plus heated seats with electric adjustment, you’ll need to look higher in the line-up. These are largely all nice-to-haves than musts, anyway.
To tempt people away from the Toyota RAV4 juggernaut you need a distinctive brand personality, which the Karoq has in spades, as well as a standard features list long enough to entice but not so lengthy that it sends the asking price over the top.
And this new Karoq entry-grade model is set at $39,990, drive-away, which is a shot across the bow of the base RAV4 GX 2WD sitting at $39,760, before on-road costs.
It's also in the same ballpark as the X-Trail ST five-seat 2WD ($37,250 before on-roads) and Outlander ES five-seat 2WD ($37,740 BOC).
So, the balancing act between price and equipment lands with standard feature highlights including dual-zone climate control, adaptive cruise control, 18-inch alloy rims, auto LED headlights, an 8.0-inch multimedia touchscreen, wireless Android Auto and Apple CarPlay, a reversing camera, built-in nav and eight-speaker audio.
That's pretty handy, although it's worth noting while the start is keyless, entry to the car isn't, and while the Karoq Style and SportLine boast an auto tailgate, this grade misses out.
Clearly, there's been careful fine-tuning of the value equation but the car maintains a premium look and feel that stacks up well in the segment.
Power in the ZR-V hybrid continues to come from a 2.0-litre four-cylinder petrol engine with two electric motors. Total system outputs are 135kW and 315Nm.
This is sent to the front wheels only via an electronic continuously variable transmission (eCVT).
The Honda hybrid system positions the engine primarily as a generator for the battery pack at lower speeds, however once you reach 60-70km/h it can couple with the front axle and directly power the wheels.
It’s a smart system that allows for an electric zippy feel at lower speeds with the backing of a petrol engine at higher speeds.
The Karoq is powered by a 1.4-litre, all-alloy, direct-injected, turbo-petrol four-cylinder engine sending 110kW (at 6000rpm) and 250Nm (from 1500-3500rpm) to the front wheels via an eight-speed automatic transmission.
Honda claims the ZR-V hybrid consumes an average of 5.0L/100km on the combined cycle, according to ADR testing.
In practice, I’ve seen way less than this, which is fantastic. On one particular drive around the city I achieved a mind-boggling average of 3.7L/100km, but my overall average hovered around 4.5L/100km.
There is a 57L fuel tank and a minimum of 91 RON regular unleaded petrol is required.
You should easily be able to travel more than 1000km per refill, so don’t expect to be visiting servos very often.
Skoda's official combined cycle fuel economy number for the Karoq is 6.5L/100km, the 1.4-litre turbo-petrol engine emitting 147g/km of CO2 in the process.
On the launch drive program for this new entry-level model, covering city, B-road and freeway running along the coast south of Sydney, NSW, we recorded an average of 7.6L/100km.
That's useful for a conventional combustion engine without the benefit of electric hybrid assistance. Worth noting, however, minimum fuel requirement is the pricier 95 RON premium unleaded.
You'll need 50 litres of it to fill the tank which equates to a theoretical driving range of 770km using the official figure or around 660km using our on-test result.
The ZR-V’s hybrid powertrain has oodles of zip, thanks to there being two electric motors which handle a lot of the low-speed grunt.
It’s surprising how much of the driving can be done on electric power alone, provided there’s enough battery charge. Even at highway and freeway speeds the engine will switch off and coast on electric power alone.
When the petrol engine kicks on, you can barely feel it in the cabin or through the accelerator pedal. Instead you’ll only hear a familiar CVT-like drone as the engine charges the battery.
The petrol engine drone is noticeable but the note it makes more pleasant than a Toyota hybrid. Plus when you push the accelerator that bit harder it pretends to shift through gears, making the driving experience more engaging.
At higher speeds there’s plenty of oomph as the petrol engine and electric motors work in tandem. It feels like the powertrain is never stressed, making for an effortless touring feel.
There are a number of different regenerative braking modes accessed via the paddle shifters. The default is the weakest which allows you to coast more like a regular, pure-combustion car.
You can ramp up the intensity of the regenerative braking but there is no 'one-pedal' driving mode and you’re required to use the brake pedal to come to a complete stop.
From the driver’s seat you have a commanding view of the road ahead thanks to the elevated driving position. There are also large side mirrors and a big rear envelope, giving good all-around visibility.
Around town the ZR-V has a nimble feel thanks to its light-ish steering. This translates to a dynamic feel with a touch more weight out on the open road.
It’s surprising how engaging and fun this car is to drive, especially because it’s a regular SUV with no obvious sporty characteristics.
The suspension errs towards soft, but this helps soak up sharper bumps. This car never feels uncomfortable from behind the wheel which is at least partially down to the 18-inch alloy wheels being the right diameter for a car of this size.
Despite riding on sizeable 18-inch alloys (shod with 215/50 Goodyear Eagle F1 rubber), first impressions behind the Karoq's wheel are dominated by how composed and refined it is.
Even on coarse, irregular B-roads the car remains supple yet balanced and well buttoned down in the corners. The steering is nicely weighted and road feel is good.
Skoda says the Karoq will accelerate from 0-100km/h in 9.2 seconds, which isn't ferociously fast but the 1.4-litre turbo four delivers its peak pulling power from 1500-3500rpm, which means you're never short of mid-range urge.
The smooth eight-speed auto also helps keep things on the boil although power delivery isn't always linear. Squeeze the throttle and the engine can take half a beat before responding in something of a rush.
Shift from 'Normal' to 'Sport' mode and the transmission will respond more urgently, holding on to ratios longer and changing down more readily. And if you want full control, move the lever over into the 'Tiptronic' manual position for satisfyingly rapid changes on-demand.
The engine remains quiet, only making its presence felt at higher revs, the supportive front seats remain comfortable over lengthy stints and the brakes (vented discs front, solid rotors rear) deliver firm, progressive stopping power even under the pressure of an enthusiastic twisty backroad run.
Under the heading of miscellaneous observations, the multimedia system is easy to navigate and quick to respond, the extending, height-adjustable front centre armrest is brilliant and the adaptive cruise system responds to changes quickly yet calmly.
The Honda ZR-V received a four- out of five-star ANCAP safety rating based on testing conducted by Euro NCAP in 2023.
Despite this, the entire line-up is stacked with standard safety equipment. Highlights include 11 airbags, autonomous emergency braking (AEB), blind-spot monitoring, rear cross-traffic alert, lane-keep assist, adaptive cruise control, front and rear parking sensors as well as a reversing camera.
It’s worth noting a surround-view camera is reserved for the top-spec hybrid trim only, which is a little annoying.
However, the ZR-V doesn’t have any annoying beeps and bongs that play while you’re driving. All the safety systems are well calibrated and only interact or engage when required.
The Skoda Karoq's previous five-out-of-five ANCAP star rating has timed out, given the assessment was from 2017, so it's now unrated.
But that doesn't mean it's underdone in terms of active crash-avoidance tech, this base version featuring AEB (operational from 4.0-250km/h) with pedestrian and cyclist detection, adaptive cruise control, 'Lane Assist', 'Side Assist' (with rear cross-traffic alert), Parking Distance Control (front and rear), a reversing camera, rear AEB as well as tyre-pressure and fatigue monitoring.
If a crash is unavoidable, there are seven airbags on-board - dual front, front side, full-length side curtain and a driver's knee bag.
Multi-collision brake minimises the chances of subsequent collisions following an initial impact and there are three top tethers and two ISOFIX anchors for baby capsules and/or child seats across the second row.
ZR-V owners receive a five-year, unlimited-kilometre warranty as standard, whereas the high-voltage battery is covered for eight years.
If you service at Honda dealers when required, however, the standard warranty coverage is extended to eight years. This is more on par with many mainstream brands.
Speaking of servicing, it’s required every 12 months or 10,000km. The latter may be troublesome if you do a lot of kilometres.
The first five services are capped at $199. This is very affordable and on par with Toyota.
There are close to 90 'Honda Centres' across the country covering state and territory capitals as well as key rural and regional centres.
Skoda is ahead of the mainstream pack, offering a seven-year, unlimited kilometre warranty, which is two years up on the majority of the Karoq's competitors.
Roadside Assist is complimentary for the first year, renewed annually if you have your Karoq serviced at an authorised Skoda dealer.
The main service interval is 12 months/15,000km, which is in line with most of the competition, and Skoda offers a seven-year service pack for $2750, or $393 per workshop visit, which is competitive with much of the segment but some way off the Toyota RAV4 non-hybrid at $215 per service on a capped-price deal.
On top of that, through Skoda Choice you can opt for a Guaranteed Future Value offer ranging up to five years, with variable deposit and finance currently at a 6.99 per cent rate.
At the end of the term you can trade-in for a new Skoda, pay out the balloon amount and keep the car or simply hand it back.