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.
Looks are subjective but Peugeot’s updated 2008 small SUV is good looking from every angle.
The update brings a raft of design tweaks and some tech upgrades, but mechanically there isn’t anything new.
It’s not a cheap car and its diminutive size might scare off some buyers who can cross-shop cheaper and more value focused alternatives from mainstream Japanese and Korean brands.
We are driving the range-topping 2008 GT variant to find out if it’s more than just a pretty face.
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 Peugeot 2008 is a handsome and accomplished little SUV that’s fun to drive and has a cabin that feels a little bit special.
In reality the 2008 is too expensive and isn’t as practical as most of the mainstream compact SUVs.
This is the car you buy with your heart, not with your head.
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.
The Peugeot 2008 is a smooth operator with head-turning French flair, but the devil is in the detail.
It’s not just the 2008’s well proportioned dimensions or the healthy dollop of exterior black highlights that catch your eye, but Peugeot has added a range of design cues to symbolise the Lion on its badge.
The tail-lights have a 3D effect that make them look like cat’s claws and the daytime running lights on the front resemble a scratch mark. These pair perfectly with the lion head crest on the grille.
Look deeper and you notice the attention to detail.
The 2008's redesigned front grille's slates are colour matched to the car's body colour.
Dual exhaust pipes are finished in chrome, giving the impression of performance even if the car doesn’t deliver on it.
The GT variant gets a two-tone paint job with a black roof contrasting with the body's colour.
Inside there are plenty of high quality finishes. The centre console is festooned in gloss black and there is a lovely carbon-effect textured insert on the dash and doors.
Some hard plastics below eye-level and on touch points such as where your knee might rub are less impressive. The rear seat loses some of the lustre of the front pew with tough plastics covering the back of the front seats and most of the doors.
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.
Step inside and there is no hiding the 2008’s diminutive proportions.
It’s 4300mm long, 1815mm wide and 1550mm high, which puts it closer in size to the mini Mazda CX-3 than the larger CX-30 it is more aligned with price-wise.
This all adds up to a snug fit in whichever row you sit.
There are a couple of cupholders in the centre console - a smaller one for a standard takeaway coffee and a larger one for drink bottles.
Slight storage bins in the door can hold a regular drink bottle but there isn’t much room for much else.
The wireless device charger is hidden away behind a compartment below the central screen that opens with a push and there are two USB-C ports up front and the rear seats score a USB-C and A connection.
Rear seat passengers do without a dedicated aircon vent, unfortunately.
There is an issue with Peugeot’s i-Cockpit steering wheel and digital driver display, too.
If you like to sit low the chances are the steering wheel will cut off your view of the bottom part of the display. If you prefer to have the seat jacked up, you’ll have better vision of the readouts.
There are piano key-like physical controls for simple climate functions such as the de-mister and auto climate settings. More complex functions are done via the 10-inch central multimedia screen.
The boot is a decent size at 434L and can easily handle a weekly grocery shop or a few overnight bags.
There is only a space saver spare wheel, but this car is aimed at city driving where it is easier to source a replacement tyre.
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.
The 2008 range kicks off at $39,990, before on-road costs, for the base Allure grade and rises to $44,490 for the fully loaded GT variant.
That’s a lot of money for a small SUV, especially considering the Skoda Kamiq range starts at $32,990, you can get Nissan’s Qashqai from $33,890 and a Mazda CX-30 for $33,140.
There is a lot to like about the 2008’s standard equipment list, though.
Flash looking 17-inch alloy wheels are complemented by adaptive LED headlights that control individual LEDs to brighten the road without dazzling oncoming vehicles. The headlights will automatically switch on in low light situations and stay on for a short period of time after you exit the vehicle to make it easier to find your way to the door at night.
A 10-inch multimedia screen is compatible with wireless Apple CarPlay and Android Auto, and a wireless device charger completes the cord-free ecosystem.
Peugeot’s 'i-Cockpit' brings a 10-inch driver display with 3D readouts paired with a small steering wheel.
GT buyers can expect eight colour ambient lighting, a six-speaker stereo, four USB charging ports, in-built sat nav and brushed aluminium foot pedals.
Well bolstered seats are heated up front and wrapped in synthetic suede and leather upholstery with contrast green stitching. The driver’s seat is power adjustable and has a massage function but the front seat passenger will need to move the seat themselves.
There are rain-sensing wipers, roof rails, power folding and heated side mirrors and a space saver spare wheel.
It’s a solid list of equipment but is missing some features you’ll find on similarly priced rivals such as a head-up display.
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.
Lurking beneath the bonnet is a little three-cylinder 1.2-litre turbo-petrol engine that makes 96kW and 230Nm. That’s a decent amount of grunt from the little unit, but again you can get more oomph for less from mainstream rivals.
It is paired to an eight-speed automatic transmission that drives the front wheels.
There is no hybrid help, either.
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.
Stiff emissions regulations in Europe mean these little turbocharged petrol engines have a fair bit of self control on the drink.
Peugeot claims the 2008 uses 5.4L/100km on the combined cycle. We used slightly more than this but spent most of the time in the cut and thrust of city traffic where cars use more fuel.
You’ll need to budget for pricier premium unleaded petrol, too.
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.
On the road the 2008 is a bit temperamental.
Most European cars are fitted with stiffer suspension than the cosseting springs found in Japanese machines.
This means you’ll feel bumps and road imperfections through your seat more than other SUVs. It has particular problems ironing out consistent smaller bumps, which can unsettle it and lead the 2008 to skip across them.
The counterbalance to that is a more dynamic drive experience, with the 2008 exerting excellent body control through the bends as it is held in line by the stiffer set-up.
Pair this with sharp, direct and well-weighted steering and it's a fun little SUV to take on a twisting country back road.
Three cylinders might not sound like a lot, but in the real world this is all the 2008 needs.
Its 96kW and 230Nm won’t set the world on fire but the torque is accessed from just 1750rpm, which endows the 2008 with some punch off the mark and it feels zippy when navigating the daily commute.
Don’t confuse that for outright speed, though, the 2008 completes the benchmark 0-100km/h dash in 9.3 seconds.
The transmission is fine when you are accelerating or cruising at motorway speeds, where it uses its many ratios to keep the engine humming along in its sweet spot. There are paddle shifters if you want more control.
In stop-start traffic it isn’t as an accomplished performer. It can struggle to find the right ratio and this leads to a jerky movement reminiscent of dual-clutch autos.
The cabin is well insulated with the outside world kept mostly at bay, but you’ll hear the three cylinder’s charming little rumble when you put your foot down.
Parking is a cinch thanks to its petite proportions and the 2008 has no issues navigating tight city streets or underground car parks.
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.
The 2008 has a maximum five-star ANCAP safety rating, but that mark was given in 2020 and it might not get the same score if it was retested today.
It has six airbags, but misses out on a centre airbag that protects against head clashes in a side on collision.
It has a decent amount of safety equipment with auto emergency braking, lane keep assist, blind spot monitoring and adaptive cruise control.
Rear cross-traffic alert, which sounds an alarm if a car is approaching from the side as you reverse, is a notable absence.
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.
Peugeot covers the 2008 with a five year/unlimited km warranty, which is the standard coverage today.
The French brand offers a range of prepaid servicing packs that’ll save you a handy amount compared to pay-as-you-go maintenance.
A five-year plan is the best value, costing $1700 for five scheduled visits every 12 months or 15,000km. That’s $638 cheaper than the pay-as-you-go servicing.