What's the difference?
If you're feeling the cost of living sting, there's a good chance you've scaled back your ambitions for your next new car. You may have even looked at some of Australia's most affordable brand-new vehicles and the Kia Picanto is one of them.
It's one of the few brand-new options left with a before-on-roads starting price of under $20,000 and it's one of the few non-performance models left which can still be chosen as a manual.
It's one thing to be affordable, though, and quite another to be good value - so does the freshly updated 2024 Picanto have what it takes to stack up against more expensive options? Let's take a look.
A number of established small cars are becoming more expensive and less popular. The Toyota Yaris, Mazda2 and Suzuki Swift were once the go-to first car, but now start at around $25,000.
This repositioning was great for MG and its sub-$20,000 MG3, which has spent much of the last few years as Australia's most popular light car. It’s hard to deny a low price will open many wallets.
But now in its new generation, the MG3 is thousands of dollars more expensive than before, starting in the mid-$20K range and headed even further up with a new hybrid drivetrain option. We jump in the base petrol Excite to find out if the value is still there for this British-branded, Chinese-built hatchback.
Australians are moving into ever-larger vehicles when really we should be embracing the small car now more than ever. It's great Kia is still here, with its Picanto showing what can be offered in such a compact form-factor.
While it's not as affordable as it once was, it looks like it won't be long before Kia is the last torchbearer of sub-$20k starter cars. Even so, this is a great choice for buyers on strict budgets.
The MG3 still makes a strong argument for a low-cost, low-fuss option just like the models it now beats on price (Yaris, Mazda2, etc) used to.
While it also falls short in some areas like dynamics when pushed, the improvements to interior tech and comfort mean the MG3 should be considered if you're looking for a city runabout.
However, with the MG3’s price jump, rivals from Japanese and Korean brands are closer in cost than they were for the sub-$20K first-gen MG3, and their ability to handle Australia’s conditions outside the city mean they’ll prove a more useful long-term companion for many.
The MG3 nails its brief as a convincing option for first-car buyers or as a second runabout when there’s another option for long trips. It has taken a big step up from the ‘budget-friendly’ vibe of the original.
You wouldn't know it in Australia, where our collective tastes are orienting toward larger and larger vehicles, but city cars are experiencing something of a golden age overseas.
Cars like the Nissan Sakura, Honda N One, and Hyundai Casper join a long list of others which are design leaders in the city-car segment, and this is why the Picanto needs to look sharper than ever to compete.
Particularly in the GT-Line form we tested for this review, the 2024 car has adopted a dramatic facelift which complies to Kia's incoming and much more science-fiction look, complete with an extremely angular design and frowny LED light fittings.
Around the rear, there's a reworked set of tail-lights with a contemporary strip which almost reaches the whole way across the boot lid, and the new alloy wheels round out the whole aesthetic.
Given this, it's a little disappointing to see how few elements have changed on the interior. From the inside, this Picanto feels basically the same as the pre-update version.
I like the D-shaped steering wheel the GT now gets, and the multimedia screen is great for such a small and affordable car, but all the other switchgear, including the steering wheel is from previous-generation Kia products, and not the shiny new design-led stuff which appears in cars like the Sportage, Sorento, or Niro.
Also, while it's feature-laden all things considered, the interior plastics are mainly the harsh, hollow, scratchy kind. The new digital instrument cluster isn't one big screen, instead it's constructed of a few basic sectors which aren't customisable outside of the background colour. At least the central portion shows some useful information.
Following the new design language pioneered here by the MG5 sedan and MG4 electric hatch, the MG3 looks like it’s trying for a sportier vibe than its predecessor, and maybe even a hint of European flair.
A grinning front grille and pointed set of headlights are followed around the side by a couple of body creases that give the hatchback a sweeping look, an attempt perhaps to seem longer than it is.
It doesn’t look like any of its rivals, unlike the MG5 which is easily mistaken for a small Mercedes CLA at glance.
Here on our Dover White test car, some angles are unflattering (it's giving 'hire car'), though the model’s available Diamond Red or Brighton Blue are fairly distinctive. Yes, some of the colours reference the brand’s UK heritage, despite being built in China.
Inside, the cabin benefits from a fairly tidy layout, with some genuinely thoughtful attempts at making the otherwise budget-focused model feel a little nice. A cross-hatch design through the dash mirrors, the seat stitching and the steering wheel and its buttons are nicely angular.
Feeling a little old or not, the Picanto has a clever interior which makes the most of its limited dimensions.
There are huge bottle holders in the front doors, a further two with little flip-out sectors which sit below the air-con controls. These holders can be folded away to turn this space into a tray for the storage of large objects. There's even a centre armrest console box, but it's tiny.
On the topic of air-conditioning controls, these are, refreshingly, physical dials, which are increasingly going missing as manufacturers move such functions to touchscreens. The Picanto keeps things manual though, even including a volume and tuning knob for the touchscreen, with physical shortcut buttons adorning the bottom section of the frame.
Physical controls is something Hyundai Group has committed to, and it's not until you use a vehicle without them you realise how essential they can be.
Despite its tiny footprint, there's also plenty of room in the cabin for an adult my size (I'm 182cm tall). I felt as though there was massive airspace between my head and the roof, as the Picanto's seats let you sit nice and low to the ground, and while it's limited in its width, it feels like I had enough room and adjustability for my legs.
Only one area brought me discomfort and it was the elbow-rest in the door. Sounds silly, but while the GT-Line has a little synthetic leather strip here, for some reason it has no padding, so it's seemingly for aesthetic purposes only and is still an uncomfortable place to rest your elbow on longer journeys.
It sounds unlikely, but I fit behind my own driving position in the back seat, with my knees almost up against the back of the front seat. Thankfully, the seat backings are softly-clad so even if you were slightly taller than me it might be ok.
Again, headroom is sufficient, and the seats are reasonably comfortable in the outer two positions. There are no amenities in the back seat. Rear passengers don't get air vents, door pockets, or a drop-down armrest in the centre position. There is only a small pocket on the back of the passenger seat. Can't say it would be the best space for longer journeys, but it fits adults for short city trips.
The boot measures 255 litres. It's small enough it may rule the Picanto out for some family buyers who need to wrestle with a pram or some such. The boot is large enough to fit either the largest CarsGuide luggage case on its own, or the two smaller ones, but absolutely not all three. It may surprise you to learn there is enough room under the floor for a space-saver spare wheel.
That tidy design inside helps when it comes to making use of the space, as well as offering some generous storage spaces.
For starters, while the clean layout means the screen looks like the main point of access for much of the car’s function, there’s an all-important shortcut button for the climate control which means you don't waste time navigating to the vent and temperature controls.
The only issue is that while my phone was connected to the system for Android Auto, I had to navigate away from the mirroring screen back to the MG3’s home screen before being able to shortcut to the climate settings.
Demister and volume control buttons are also present, but the screen itself has an easy-to-navigate menu.
The steering wheel controls are similarly straightforward and clearly labelled, while the driver display is tidy and shows important information clearly.
While the steering wheel isn’t telescopically adjustable, it's easy to find a comfortable seating position thanks to the adjustability of the seats. The material on the seats doesn't feel rough or cheap.
Behind that, there is enough space for my 178cm frame in the second row for the most part, but headroom isn’t incredibly generous.
The rear pew is a single unit, rather than a 60/40 split, so the whole backrest folds down if you need to load anything long through the boot. There’s not even an armrest or little ski hatch for long, thin items.
Its 293-litre boot isn’t small, and there’s a space-saver spare tyre in both petrol variants, but the hybrids are stuck with repair kits.
Every dollar counts here, which is why it is disappointing to see the Picanto continue to claw up the price-scale for this update, but it's not in a major way, and it's still one of few options left in this price-bracket at all.
In fact, it is the only option aside from the MG3 Core, which can be had in automatic form at $19,990 drive-away and even then this car is set to be replaced later this year with a bigger and more expensive new-generation, so the Picanto may well be the last bastion of sub-$20k affordability in Australia.
Now keep in mind, these are before-on-road costs, so it's likely if you can have any Picanto under $20k by the time you get it on the road, it's probably going to be the base model Sport Manual, which starts from $17,890.
From there, you can add an automatic gearbox, pushing it to $19,490, or you can upgrade to the GT-Line which is the car we have for this review, which costs from $19,690 for the manual as-tested, or $21,290 for the automatic.
A small spread of relatively affordable prices in this market then, but what's in the box? As it happens, more than you might expect.
Standard stuff in 2024 has increased on the base Sport grade to include 14-inch alloy wheels (in place of the previous steel wheels with hubcaps), as well as a leatherbound steering wheel and shifter (up from the previous plastic-clad ones), and a 4.2-inch digital instrument cluster replaces the analogue dials.
Meanwhile, the GT-Line scores a D-shaped steering wheel and new 16-inch alloy wheel designs, and the updated and more aggressive face is highlighted by LED light clusters. In addition, the GT-Line scores USB-C outlets on the inside, synthetic leather seat trim, and both grades maintain the 8.0-inch multimedia touchscreen with wireless Apple CarPlay connectivity.
Feels like a lot more car than it appears from the inside, especially since it comes with most of today's expected active safety tech, too, which its main rivals, the MG3 and Suzuki Ignis, have never been able to claim.
Even though it’s now more expensive with its $23,990 before on-roads price, it’s hard to deny the petrol-only MG3 Excite is a compelling offering when it comes to inexpensive runabouts.
Not only has the price been bumped up, but so has the apparent interior quality and features list.
A new 13.25-inch multimedia touchscreen is paired with a 7.0-inch driver display and both look pretty slick for the price point and operate well.
Apple CarPlay and Android Auto are both available, but are wired only and can’t be accessed with a Bluetooth connection, while a six-speaker sound system handles entertainment duties.
In terms of seating and material, the Excite gets cloth pews with some contrast stitching.
On the outside, folding mirrors and a set of 16-inch alloy wheels join the new MG3’s design, while this base model Excite is left with halogen headlights like it’s 2015.
The Essence scores a set of LED units and is otherwise distinguishable by its sunroof, though it shares the same wheels as our base car, so it won’t feel like you’re missing out on heaps.
This is another area where the Picanto is feeling in need of a little innovation. It has the same very dated 1.2-litre four-cylinder petrol engine as the previous car, producing a sufficient but not exciting 62kW/122Nm.
It drives the front wheels via an equally old four-speed automatic transmission, or as tested, a five-speed manual transmission.
It's better with the manual if you can drive one, and a bit of a win for first time or young buyers who will still have the option to learn to drive one, so points there.
On paper, the MG3’s 1.5-litre four-cylinder engine is fairly underwhelming with its 81kW (peaking at 6000rpm) and 142Nm (at 4500rpm).
But these figures, including the engine size and even peak RPMs are not far off the likes of the Mazda2, which is a fairly peppy and fun car despite its lack of grunt.
Keen drivers will, however, be disappointed to hear the MG3 drives the front wheels via a continuously variable transmission (CVT) rather than a traditional torque-converter auto, taking much of the pep out of its power unit.
You can expect to hit 100km/h in a bit over 10 seconds.
An older engine and transmission combination makes for a less than impressive fuel consumption figure in today's market, but then the Picanto is a very light car, so it has lower fuel consumption than most of its contemporaries regardless.
The official fuel consumption on the combined-cycle test of the five-speed manual we tested is 5.4L/100km, and in our week of what I would consider fairly combined usage our GT-Line drank 6.0L/100km. Not great when you consider a much larger hybrid Corolla can use less fuel, but pretty close to the claim nonetheless.
The Picanto has a 35-litre fuel tank – enabling a theoretical driving range of 648km – and happily drinks base-grade 91RON unleaded fuel.
MG claims the MG3 uses just 6.0 litres of 91 RON petrol every 100km on the combined fuel cycle, so with its 45-litre tank you can hypothetically bank on a 750km range.
Of course, that might be achievable in lab conditions, but on test we found the trip computer’s estimates looking closer to 500km on a tank for the kind of urban driving it was undertaking with us.
On a dynamic test drive route, the trip computer settled at a displayed consumption figure of 7.7L/100km, but stop-start driving was not great for efficiency, as you'd expect.
You've got low power, a pretty low-tech engine and transmission, but this little Kia is still great fun to drive.
For a start, you can have it as a manual that lets you wring the best out of the little engine, which is easygoing but lacklustre with the four-speed auto.
To be clear, it's not a great manual - usually when you get a brand new manual in 2024 it's one of those fancy performance ones with nice damping and notchy gates, but as simple as it is, it also gives the car a raw mechanical nature which keeps it engaging to drive. There are real consequences for choosing the wrong gear and it takes a touch of skill to get used to, a lost art of the all-encompassing drive which is a welcome change of pace compared to a lot of cars today.
The Picanto also has keen steering helping the organic feel, and it has a firm ride, too, which makes it surprisingly sporty in the corners, but it's lightweight nature and firm suspension gave it a crashy and bouncy feel on some of the inconsistent Sydney streets I exposed it to.
It's also a bit noisy in the cabin, both in terms of engine noise (you have to rev the thing to get it going) and tyre roar on anything but the finest tarmac. This issue increases with your speed, and reminds you of its city-car intention when you're on the freeway.
Still, the city is where it's best suited to, and it's a joy to easily dart down alleyways which take a degree of caution in the usual mid-size SUVs you see around the place, and the fact you can park it anywhere can be a real blessing.
The visibility is great, too, which means multi-lane situations aren't a nightmare, and the full suite of manual adjustment for the stereo and air conditioning are super easy to use when you're on the go (who has time to adjust a touchscreen when you have a manual transmission to worry about?)
In conclusion then, the Picanto isn't to be underestimated. This is a spritely fun little thing which makes the most of its limited hardware, but it truly is best suited for the confines of a city, and gets less impressive as you get it out on the open road.
The higher quality look and feel of the new MG3 carries through to its day-to-day driving. Some of the car’s Chinese compatriots seem to fall down when it comes to the on-road part, which for some is the most important part of a car.
But for a small city car the MG3 is very user friendly, with light and direct steering, good visibility, and just enough power and torque to not feel like everyone’s getting the green light a couple of seconds earlier than you.
It’s comfortable at urban speeds when it comes to the suspension, and doesn't get rattled too much in the front end by tram tracks or other road imperfections.
In narrow streets, three-point turns aren’t a hassle and the car’s size means it’s easy to reverse parallel park, although the reversing camera takes a second to appear when using phone mirroring.
On the highway, however, and when it comes to high-speed cornering, the MG3 can feel a little uneasy.
The road noise becomes more and more obvious. Driving on well-maintained metro freeways at around 80km/h or above produces unpleasant noise, and a during a particularly breezy week the car felt susceptible to swaying in high wind.
Its power delivery starts to feel lacking out of town, too, and taking corners on fast back roads means plenty of slowing down to avoid the front-end sliding or the feeling of the MG3 leaning unsettlingly around corners.
If you’re considering the MG3 but you need to head out of town regularly, take a proper long test drive before opening your wallet.
But if you just need it as an urban runabout, the MG3 does a fine job.
The other great thing about this Picanto is its surprisingly thorough suite of active safety items. It gets auto emergency braking, lane-keep assist and lane departure warning, as well as blind-spot monitoring and rear cross-traffic alert.
Again, its limited array of rivals like the MG3 and Suzuki Ignis can't compare.
The Picanto has an array of six airbags (dual front, side, and curtain), although it is not currently rated by ANCAP.
ANCAP hasn’t tested the MG3 yet, so there’s no crash safety information available. It’s worth noting ANCAP gave the MG5 a zero star score for its lack of active safety equipment, but the MG3 comes with more under its belt than its sedan stablemate.
Six airbags, two front, two side and two curtain, are joined by adaptive cruise control, blind spot detection, rear cross-traffic assist, forward collision warning, lane departure warning, lane keeping assist and speed limit assist.
None of these systems were intrusive on test, though lane-keep assist feels like it could do with some more fine tuning.
Kia's stand-out seven-year/unlimited-kilometre warranty isn't as stand-out as it once was, but is still the standard to beat for this segment, and is especially impressive considering the up-front cost of the Picanto.
You also get seven years of roadside assist included and a seven-year capped-price servicing program.
Over those seven years the price averages out to $438 annually, which is not as cheap as it could be, especially considering many Toyotas cost about $250 a year to keep on the road for their (shorter) warranty period.
The Picanto needs to visit a workshop once every 12 months or 15,000km, whichever occurs first.
MG has a 10-year/250,000km warranty which is unmatched in the small-car market.
Servicing is scheduled at every 10,000km or 12-month intervals, with the first seven services averaging out at a fairly hefty $360 - the cheapest being $234 and the priciest $536.