What's the difference?
The Hyundai Kona is the Korean car giant’s best-selling model in Australia, by a reasonably comfortable margin. And in 2025 it managed to battle its way to the top of the ludicrously competitive ‘Small SUV under $45K’ new-vehicle sales category.
Chery’s breakthrough Tiggo 4 Pro, GWM’s Haval Jolion, the MG ZS and close to 20 other well-credited segment rivals can all dream on because currently the Kona has their measure.
So, what’s all that about? Why are so many Aussie SUV buyers choosing to put a Kona in the driveway?
In an attempt to answer that question we slotted a Kona Hybrid into the CarsGuide garage, in this case a new mid-spec Elite version, to explore its relative strengths and weaknesses.
So, if you’re in the market for a compact SUV, with the Kona on your shortlist (and odds are it already is) stay with us for a detailed examination.
One question frequently discussed in the skunkworks of the CarsGuide office is: What exactly does Lexus stand for?
When the brand debuted its original export-market IS sedan in 1999 the messaging was more or less clear: Toyota’s premium sub-brand was here to be a Japanese BMW.
The brand even employed Nobuaki Katayama – chief engineer on the iconic Corolla AE86 program – to again take the reins of its small rear-wheel drive sedan program.
As the years went on though, Lexus changed. Fundamentally geared toward the US market, the second-generation (wild IS F aside) became a bit more sedate and softer around the edges, while the third generation strayed even further from the sedan’s performance-inspired roots, leaning into a plush interior, hybrid drive, and even CVT transmissions.
This brings us to today’s Lexus IS. Essentially a heavy facelift of the third generation (which arrived back in 2013), the brand has “reimagined” its core sedan with a tweaked design and updated technology for 2021.
Is it enough to keep it relevant against its ever-present European rivals and the newly arrived threat from Hyundai’s Genesis G70? I took a signature IS300h hybrid for a week to find out.
It’s easy to see why the Hyundai Kona leads the Aussie small SUV category, with this hybrid version enhancing the car’s abilities in key areas. Sharply priced and well-specified, comfortable and practical with a hugely efficient powertrain as well as refined dynamic performance. It’s a compelling package.
Smooth, cosy, quiet, the IS looks and feels better than ever, but without a doubt this hybrid version is a car best suited to cruising the dense metropolis of Chiba at midnight more than it is carving up a bunch of S-bends in the Australian countryside on the weekend.
While that might still limit its appeal for fans of German sports luxury sedans and place it further from the original IS’s ambitions, it does offer an intriguing efficiency and luxury focused alternative, without the compromises brought by rivals with more sporting intent. In a way then, the IS 300h perhaps inadvertently best embodies what Lexus is as a brand.
The Kona’s exterior mixes smooth curves across its softly rounded nose and swollen haunches with sharp lines and geometric shapes in the lower grille, wheel arches and rear bumper.
And when the current, second-generation version arrived in mid-2023 it swapped out its predecessor’s already slimline LED daytime running lights for an even thinner strip running the width of the car, in similar fashion to the Hyundai Sonata sedan and Staria people mover.
The single line light signature is repeated with the tail-lights, a brake, reversing and indicator cluster confined to the outer rear edges.
Throw in a conspicuous diagonal character line across the doors, and bright metallic accents making a visual connection between the top of the tailgate and the lower edge of the side glass and there’s a lot going on.
Always a subjective call, but I don’t mind the Kona’s design, although our test car’s ‘Mirage Green’ paint finish leaves me (and my significant other) cold.
Inside, the colour palette is uniformly grey which contributes to a restrained, relatively low-key feel, although light trim for the headliner and pillar covers brightens the mood somewhat.
The dash treatment is cool and contemporary, comprising a wide wrap-around instrument and media screen panel next to a narrow tray on the passenger side.
Fit and finish is impressive and details like perforated centre panels on the leather-faced seats dial up the premium feel.
Look closely and quite a lot has changed. This is really a story of doing a facelift right. Lexus has kept all the great-looking bits of the car that launched in 2013, like its striking side profile and angular accents, while dumping most of its least popular elements like the spidery front light-clusters and busy front splitter, in favour of something more refined and conservative.
It even adds some new flair in the rear three-quarter, with dramatic LED light-clusters working their way into a trendy highlight strip across the boot lid.
These changes all add up for a much tougher, sportier, and nuanced design compared to the outgoing car. One that manages to make an eight-year old design look as contemporary as ever.
I even liked our test car in its plain black shade, although I'm less sure about those conservative-to-a-fault, almost Camry-esque alloy wheels.
On the inside, sadly not a whole lot has changed. The busy design looked dated when this generation of IS launched in 2013, and it still looks dated now.
The visual assault of buttons, toggles, displays, textures, and trims is a lot to take in, and makes the cabin feel smaller than it is.
It probably didn’t help the sensory overload of this car’s interior as I hopped out of the stripped-back interior in the Tesla Model 3 I had the week before.
My less-than-impressed brother, a student of design, described the IS’s interior best when he told me “It’s a bit maximalist, don’t you think?”
If nothing else, at least Lexus hasn’t blatantly imitated anyone else when it comes to its interior, but the brand remains firm on dorky design items like the laptop touchpad, redundant drive-select dial, and odd vacant panels under the climate unit which do it no favours.
A welcome upgrade for the 2021 model year is the new media screen, a highlight piece perched atop the dash. It’s bright, has excellent contrast, and doesn’t seem to fall victim to glare.
The Apple CarPlay support I used was seamless and sharp and made the most of the available real-estate in its widescreen layout.
I somehow didn’t mind that the instrument cluster in this base car is analog. It almost suits the IS’s character better than a digital set-up would. Also offered is a small information display between the dials which I used for monitoring the hybrid drive.
A final note on the IS’s design. The fit and finish is quality, inside and out. It leaves you with an impression that this is an immaculately built vehicle, one that should be a must for all luxury cars, and always a strong point for Lexus.
Even though the Kona measures a relatively modest 4350mm end-to-end, it offers up copious amounts of interior space. Dr Who would be proud.
Lots of breathing room up front, with the ‘shift-by-wire’ auto transmission shifter’s location on the steering column freeing up extra space in the centre console.
There’s a lidded bin between the seats (the padded top of which doubles as a centre armrest) with an open tray the size of a shoebox in front of it (which includes a pair of swivel-out bottle or cupholders) as well as a wireless phone charging bay ahead of that.
Generous bins in the doors include a recess for large bottles, plus there’s a decent glove box on the passenger side and a handy open tray above it. Plenty of room to keep the bits and pieces of everyday life under control.
Power and connectivity for the driver and passenger runs to two USB-C sockets and a (180W) 12-volt outlet.
Switching to the back is where the Tardis factor steps up a notch, the Kona offering space more in line with a next-size-up medium SUV.
Sitting behind the driver’s seat set to my 183cm position there’s loads of leg and headroom and even enough shoulder room for three adults to get to know one another on shorter journeys. A close to flat floor also helps with foot room in the centre position. Worth noting the rear seat backrests recline slightly for extra comfort options.
No door bins as such but, again, there are recesses for bottles. Netted map pockets on the front seat backs are helpful as is a fold-down centre armrest, which includes a pair of cupholders.
Individual air vents for back-seaters (in the rear of the front centre console) is always a welcome inclusion, and there’s a small oddments tray underneath them. Another pair of USB-C sockets will keep devices charged.
Boot capacity is healthy at a class-competitive 407 litres (VDA), expanding to 1241L with the 60/40 split-folding second row seat folded.
There are storage wells behind the rear wheel tubs, multiple bag hooks and four tie-down anchors to help keep loads secure.
There’s a temporary space-saver spare under the boot floor, which gets a tick over the increasingly common repair kit option and you’ll be able to tow a 1.3-tonne braked trailer (600kg unbraked).
Well, the IS is a sedan, so it doesn’t quite have that high-riding appeal of an SUV, and for this update it has even leaned further into its low-slung proportions with a roofline that descends a further 15mm and a boot lid which is 31mm lower overall.
As with the previous car, the interior is quite closed-in thanks to that busy dash design and large centre console. Rather than feeling claustrophobic though, it is best described as cosy, with lots of plush finishes throughout the doors and centre stack befitting a luxury nameplate.
Adjustability is great for the front two occupants and there are two large bottle holders between the seats, a large but shallow console box under the armrest, bottle holders with adjoining bins in the doors, and a smallish glove box.
That’s about where storage ends though, with no extra trays or bins in front of the oddly placed shifter, just an awkwardly finished plastic panel where it feels like a little tray or storage cutaway should be.
The touchpad for operating the media screen joins an unnecessary drive-select cluster in eating up centre console space where there could be more storage.
The rear seat is quite limited on space despite being lavishly trimmed. I fit behind my own (182cm/6'0") driving position with little knee or headroom to spare.
Again, it’s cosy and very comfortable, but if you're taller or wider than me you may run into issues.
The centre rear seat is all but useless for adults, with the IS’s rear-drive architecture necessitating a huge transmission tunnel that almost comes as high as the seat base itself.
Storage is limited to pockets on the back of the front seats, small bins in the doors that double as handholds, and a drop-down armrest with two bottle holders.
There are no power outlets for rear passengers, but there are dual adjustable air vents.
Boot space is 450L which is a little small for the class. It’s impressive the hybrid only managed to lose 30 litres compared to petrol-only IS variants, though, so best to count your blessings.
The largest CarsGuide travel case easily fit in the wide but short available space.
When you’re sitting on top of the sales pyramid, everyone wants a piece of you and it feels like Hyundai has priced and specified the Kona to match the market with some special touches thrown in here and there.
At $39,950, before on-road costs ($44,738, drive-away), the Hybrid Elite’s standard equipment list is generous.
Aside from the safety and performance tech covered further down, big ticket items include leather-appointed seats and steering wheel, heated and power-adjustable front seats (10-way driver / eight-way passenger), 18-inch alloy wheels, LED headlights, tail-lights and DRLs, keyless entry and start, adaptive cruise control and auto rain-sensing wipers.
There’s also dual-zone climate control, digital radio, wireless Android Auto and Apple CarPlay, six-speaker audio, a 12.3-inch multimedia screen and 4.2-inch instrument cluster, rear privacy glass and more.
A sneaky power tailgate and/or ventilated front seats would be nice at this price-point, but they’re by no means mandatory for the class.
Similarly priced hybrid rivals like the Haval Jolion Ultra Hybrid ($38,990, drive-away), Honda HR-V e:HEV L ($42,900, drive-away), Subaru Crosstrek Hybrid L ($39,590, before on-road costs) and Toyota Corolla Cross GXL Hybrid ($41,190, before on-road costs) are broadly aligned with the above features list but none of them put the Kona Hybrid Elite in the shade.
To be precise the variant we’re looking at here is the IS 300h Luxury. It’s the base IS trim with the hybrid powertrain and it wears a before on-road costs (MSRP) of $64,500.
Base car or not, the new IS is very well specified. Now standard are 18-inch alloys (up from 17s), full LED headlight clusters, eight-way power adjustable front seats, dual-zone climate control, 10-speaker audio system, and importantly a brilliant new 10.3-inch multimedia screen with widescreen Apple CarPlay, Android Auto, built-in navigation, and DAB+ digital radio support.
Keyless entry and push-start ignition also continue to be offered, as well as a leather-look interior trim which in our car was in a rather contrasting 'Ochre' colour option.
Our IS 300h was also fitted with the creatively named ‘Enhancement Pack 1’ which adds an openable moonroof for $2000. The significantly more expensive ‘Enhancement Pack 2’ ($5500) adds the moonroof alongside 19-inch alloys, upgraded LED headlights, interior ornamentation, scuff plates, a panoramic reversing camera, 17-speaker premium audio, ‘leather-accented’ interior trim, ventilated front seats, and an electric rear sunshade.
These packs are seemingly largely unnecessary but are also very cheap for a brand at the premium end of the market.
Lexus has made pretty much all of its high-end active safety equipment standard on this base ‘Luxury’ for 2021, alongside some previously unavailable tech which we’ll take a look at in the safety section of this review.
At this price the Lexus IS 300h goes into battle against the Mercedes-Benz C 200 ($66,900), BMW 320i ($70,900), Audi A4 35 TFSI ($55,900), and the ever-looming threat of Hyundai’s Genesis, which offers its similarly-sized G70 in base form at $59,300.
Some of these base-spec rivals are cheaper, some are more expensive, but did you notice none of them are hybrids?
Access to Toyota’s affordable and popular hybrid drive is a real point of difference for the Lexus brand, and we expect it’s a key drawcard for the loyal customer base. More on that later.
The Kona Hybrid is powered by a naturally aspirated 1.6-litre, four-cylinder petrol engine working in concert with a single electric motor, both driving the front wheels through a six-speed dual-clutch automatic transmission.
The all-alloy engine features dual variable valve timing and direct-injection to produce 77kW at 5700rpm and 144Nm at 4000rpm, the permanent magnet synchronous motor chipping in with 32kW/170Nm for a total combined outputs of 104kW/265Nm.
That power output is in the middle of the small hybrid SUV pack and torque is at the higher end.
Kerb weight is a fraction over 1.5 tonnes and you can expect 0-100km/h acceleration in the high 10-second range with a top speed around 170km/h.
The IS 300h does stand out from the luxury sedan crowd by offering a hybrid drivetrain at a reasonable price. Some rivals offer plug-in options further up the price scale cementing them as a niche option, but the beauty of this Lexus is its very mild $3000 price jump over the base petrol car.
The base car’s 2.0-litre turbo is dumped in favour of a 2.5-litre non-turbo Atkinson-cycle four-cylinder hybrid set-up similar to the one proving popular in the Toyota Camry and RAV4.
The petrol engine produces 133kW/221Nm on its own, and the electric motor produces 105kW/300Nm. Toyota says the “combined system output” of this is 164kW.
Either way, that's less than the base 2.0 turbo. The 300h also swaps out an eight-speed torque converter automatic in favour of a continuously variable transmission. Rare in a rear-wheel drive car.
Hyundai’s official fuel consumption figure for the Kona Hybrid Elite, on the combined (urban/extra-urban) cycle is a miserly 3.9L/100km, the 1.6L engine emitting 89g/km of CO2 in the process.
Minimum fuel requirement is 91 RON ‘standard’ unleaded and with a 38-litre tank theoretical range is around 975km.
On test, over several hundred kays taking in city, suburban and freeway running, we saw an average of around 4.4L/100km, which is impressive and a big contributor to the car’s appeal.
Using our real-world test number, the range figure comes in at a still handy 860-plus km.
As you might hope this hybrid IS has an astoundingly low official/combined fuel consumption rating of 5.1L/100km.
I was pleased to find that after a week of mainly urban driving conditions, our IS was returning a figure of 6.9L/100km. Not bad at all, especially for a class where fuel consumption can get a little out of hand with turbocharged engines or V6s.
Of course, using the hybrid system to your advantage over the long term will get this number much lower, as I discovered on my long-term test of the Toyota Corolla hybrid which essentially uses a smaller version of the same system.
Certainly, if fuel consumption is a high concern, you’re better off with this car than the top-spec V6 (IS 350) which will easily see consumption enter double digits.
Lexus recommends a minimum RON rating of 95 for the IS 300h, and the fuel tank is 66 litres regardless of variant, giving the hybrid an impressive theoretical range of around 1000km.
The first things that come to mind when it comes to driving the Kona Hybrid are comfort, quietness and lack of stress.
From an ergonomic point of view the dash and cabin layout make life easy. There are physical controls for key functions like heating and ventilation, as well as audio and drive modes. Not a fan of the hard driver’s door armrest, though.
The engine is quiet and the transition between combustion and electric power is seamless. It’s fun to watch the (available) graphic screen in the driver’s display illustrating where drive is coming from at any given moment. Without it you’d be hard-pressed to know.
Acceleration is more than adequate and the powertrain’s bias towards electric propulsion means take-offs are ultra-smooth.
Suspension is by MacPherson-type struts at the front with a multi-link rear set-up and ride quality is outstanding. Despite the Kona Hybrid’s relatively large 18-inch rims, bumps and ruts don’t cause major disruption and the Kumho Ecsta PS71 tyres (215/55) are exceptionally quiet.
Steering accuracy and road feel are both good and drive mode switches between ‘Normal’, ‘Eco’ and ‘Sport’ are noticeable, the latter dialling up urgency and dynamic response.
That said, we found ourselves in Eco most of the time, without any penalty in terms of throttle response or cruising ability.
Torque vectoring helps keep everything buttoned down if you decide to press on through your favourite set of corners, the front seats remain comfy on longer drives while keeping you securely located and the ‘shift-by-wire’ electronic gearshift is slick.
Physical brakes are ventilated discs at the front with solid rotors at the rear and they operate with reassuring smoothness. An active hydraulic booster controls regenerative braking, adjustable through three levels. Warning: the most aggressive setting makes the car annoyingly ‘shunty’ at slower speeds.
Driver-assist safety tech makes its presence felt occasionally, but never to a disturbing degree… with one exception.
Despite the ability to program a steering wheel button to short-cut directly to the appropriate screen, the need to cancel an incessant and sometimes inaccurate overspeed warning every time you start the car is a pain.
A tidy 10.6m turning circle helps in slow-speed manoeuvres as do front, side and rear parking distance warnings and a high-quality reversing camera.
The Kona Hybrid is as good or better than anything in the class when it comes to the drive experience.
There is no doubt the IS 300h is capable. You can feel it through the car’s solid rear-drive underpinnings, silky smooth steering, and reactive chassis.
What this car doesn’t offer is excitement in quite the same sense as many of its rivals. That’s down to this hybrid’s drivetrain. It just doesn’t have that powerful follow-through in the same way turbocharged BMWs or Audis or Mercedes do.
If it’s that 'sports luxury' experience you’re seeking better off looking to the base 2.0-litre turbo or the V6 and their eight-speed automatics.
The 300h does offer something a bit different. The gentle refined efficiency of Toyota’s signature hybrid system in a luxury rear-drive package that’s smaller than this car’s ES bigger brother.
While it may feel capable thanks to the lighter suspension components and altered track that the brand has committed to for this update, the hybrid drive matches this car’s softer character brought about by its gentle suspension tune and light steering.
This is an easy car to drive around a city, it filters out bumps nicely, while offering near silence in the cabin and breezy steering for every day scenarios like manoeuvring in tight parking lots.
The CVT auto and instantaneous torque available from the electric motor make it best at traffic speeds, being both reactive and predictable, with silent acceleration when inching forward at the lights or cruising along at 50km/h.
As you might expect though, the wheezy Atkinson cycle engine and CVT conspire for a noisy and less than engaging experience under heavy acceleration.
It’s not as though you’re rewarded with particular vigour either, with this combination being a bit sluggish when a lot is asked of it.
It loses its reactivity and refinement at higher speeds or in the corners on country roads as the transmission elastically tries to keep up with the demands of the driver.
Still, few luxury sedans are quite as purpose-built for the toils of a city, and if you want to get drawn into this car’s hybrid drive antics, it’s easy to make a game out of saving fuel by trying to rely on its low-speed electric motor capability.
Really then, it leans into its urban luxury appeal. A luxury sedan for the streets of Tokyo. An ideal car in this class for the urban environment.
If you don’t care for the thrill of a turbocharger or frequently seek to explore the twists of your nearest B-road, you could do worse than the comfort and ambiance the 300h offers.
The Kona scored four from a possible five ANCAP stars in 2023, with particularly strong results in Adult Occupant Protection (80 per cent) and Child Occupant Protection (84 per cent).
It features a full portfolio of crash-avoidance tech, including AEB with forward collision warning as well as cyclist, pedestrian and motorcycle detection, plus car-to-car junction, crossing and head-on detection. Phew!
On top of that, there’s lane-keeping and lane-following assist, blind-spot monitoring, driver-attention warning, rear cross-traffic alert and collision avoidance, ‘Remote Smart Parking Assist’, ‘Safe Exit Warning’, driver fatigue detection, tyre pressure monitoring and more.
If, despite all that, a crash is unavoidable there are seven airbags fitted, including a front centre bag to minimise head clash injuries between driver and co-pilot in a side collision.
There’s also multi-collision brake (to reduce the chances of subsequent impacts after an initial crash), auto collision notification and an emergency call (SOS) function.
For baby capsules or child seats there are three top-tether points for child seats across the second row with ISOFIX anchors on the two outer positions.
All in all, a comprehensive safety offer that matches or betters the Kona’s class competitors.
A full active safety suite is now standard across the IS range, including freeway-speed auto emergency braking with pedestrian detection (works during the day and at night) and cyclist detection (works during the day only), and a new intersection braking feature, lane keep assist with lane departure warning, blind spot monitoring, rear cross traffic alert with reverse auto braking, traffic sign recognition, adaptive cruise control, and auto high-beam assist.
There is also an auto SOS function, as recently added to the Toyota Yaris Cross, which automatically triggers if an airbag is deployed. On the topic of airbags, every IS has a thorough suite of 10 (dual front, dual side, quad head, dual front knee).
This all adds up with the standard array of stability, brake, and traction controls for a maximum five-star ANCAP safety rating, although the IS was last assessed way back in 2016.
The IS is built in Japan.
The Kona is covered by Hyundai’s seven-year/unlimited-km warranty (upgraded from five years mid-last year), which is ahead of the mainstream five-year warranty pack.
Roadside assistance is complimentary for the first year, with the deal extended for another 12 months every time the car is serviced at an authorised Hyundai dealer.
Speaking of which, scheduled servicing is recommended every 12 months/10,000km, which is a little lower than the (15,000km) norm for the category. After a complimentary check up at six weeks/1500km, the first seven services (in line with Hyundai’s ‘Lifetime Service Plan Pricing’) come in at $3782, for an average of $540 per workshop visit.
That’s on the high side considering an equivalent Toyota Corolla Cross (in line with ‘Toyota Service Advantage’ pricing) will set you back an average of $354 per service over the same period.
Hyundai has a network of 185 dealers covering every Australian capital, state and territory.
Lexus gets slightly ahead of the luxury pack with an extra year of warranty. While BMW and Audi still sit on three, Lexus offers four, but it is limited to 100,000km and is still outdone by Mercedes-Benz and Korean newcomer, Genesis, offering five-year/unlimited kilometre promises.
The IS has capped price servicing fixed at $495 for the first three years of ownership with roadside assist, and the brand will even pick up and drop off your car, or offer a free loan car during every 12 month or 15,000km service.
It’s worth noting that German rivals offer pre-paid service packages out to five years, and Genesis is trying to make a splash with free servicing.
Lexus does offer a luxury ownership program dubbed ‘Encore’ which includes invites to experiences and certain partnerships with restaurants and the like to keep potential owners enticed.