What's the difference?
Australia is experiencing a mass extinction event.
Like the dinosaurs before them, and hopefully not the bees in the near future, the sub-$20,000 car is nearing the bitter end.
An evolutionary dead-end, as higher emissions and safety regulations relegate older models (read Mitsubishi Mirage) to the great scrap-heap in the sky and prevent newer ones (read Honda Jazz) from leaving their local markets.
For you, this means there are quite literally a handful of brand-new vehicles left in Australia which wear before-on-road price-tags under the magic $20,000 number.
One of them is the car we’re looking at for this review: The Kia Rio S, with the catch being you’ll have to be happy changing gears yourself.
So, is this most basic Rio worth your while, or is it best left as a puzzling fossil for future generations to study? Let’s have a look.
The Volkswagen Polo is about to turn 30 in Australia but, by 1996, it was already 21-years and three generations old in Europe.
As the least-expensive jumping-on point for the brand here today (RIP VW Up!), the Polo has deftly juggled affordability with the premium pricing that its German engineering demands.
But, at nine-years old, and in an era of newer, hybrid and electric vehicle (EV) and often cheaper alternatives from China and elsewhere, is the ageing Polo as convincing?
We test the mid-spec CityLife to find out.
The Rio S Manual is a fun-to-drive little car with a big practicality and multimedia offering in a segment rapidly heading towards extinction.
While some elements of the drive experience are reminiscent of budget cars from 10-20 years ago, Kia makes up for it by wrapping the Rio in a contemporary looking and feeling package, ready for the buyer who needs no frills and demands no nonsense. Until the manual transmission goes the way of the dodo, there is almost no better option.
The VW Polo may be getting old, but it still shines on a number of fronts, including design, interior packaging and presentation, driving sophistication, efficiency and quality.
But, the ride can be too firm and the turbo/DCT lag frustrating, it is also expensive and not fully equipped enough in CityLife grade as tested, undermining the German’s value-for-money equation somewhat.
Haggle hard, though, and you’ll end up with a fine and mature urban hatch.
While notable equipment is missing, the Rio reclaims lost ground with the way it looks, and to a degree, the way it feels.
Ever since this new generation hatch launched, I’ve thought it brings a slick modern design to the city-car space, and even in its most rudimentary form as-tested (our car even came in the most basic ‘Clear White’ paint) it’s a great looking little hatch.
Sure, it doesn’t have the romance factor of the Fiat 500, nor the more delicate curvature of the much more expensive new-generation Toyota Yaris, but it certainly has a more refined visage than, say, the MG3 whilst feeling a bit more grown-up than the Suzuki Swift.
Solid, squared-off lines give this car a sporty pose, and its frowny-face and blocky rear round out a stout city-car persona, and I especially like the way even this most basic trim is adorned with contrast pieces, a spoiler above the boot lid, and body-coloured door handles and mirrors.
Sure, the 15-inch steelies dress it down a bit, but on the Rio these leave the impression of financial prudence rather than cost-cutting.
Inside is basic but tidy. The overall look maintains a hint of sportiness, with an appealing symmetrical finish to the dash.
There’s no question the Rio is a budget model when it comes to the touch though, with everything either a soft polyurethane or a nasty hard plastic, so while it all might look neat it’s far from the most comfortable place to be for long periods of time.
The basic dot-matrix multifunction display, chunky plastic air-conditioning controls, and polyurethane items from the wheel to the handbrake and shifter are reminders of a bygone era, but the overall aesthetic of the driver’s space is pleasing.
Still looking good after nearly a decade, the 2026 Polo’s styling was overseen by the same person who created the landmark Mk4 Golf’s interior, and helped shape every existing ID. electric vehicle (EV) in VW’s arsenal, though now he’s with Changan of China.
Anyway, Polo 6’s dimensions were substantially larger than its pert predecessor’s, riding on a shortened Mk7 Golf platform (dubbed MQB A0) that has since also underpinned the very closely related Audi A1 (the circle of life!) and Fabia, as well as Skoda’s Kamiq light SUV and its VW T-Cross cousin.
The obvious upshot of all this growth is generous cabin space (being roomier than the first four Golfs), as well as a very Golf-esque/ID. EV-style dash layout that's inline with the brand’s existing design themes. It pays to be first with the new stuff. Even though some of that tech, like the touchscreen slide controllers and other buttonless nonsense developments, have taken the shine off VW since.
And it would be remiss of us not to mention that there is no sign of the current Polo being retired anytime soon despite its advancing years, with VW suggesting the newly unveiled ID. Polo EV – essentially series number seven – will run alongside with identical dimensions but far greater interior space, to help keep the company cost-competitive in the light-car class.
At this stage we don't know if Australia will even receive the new electric Polo, so the status quo here remains.
I'd argue the key reason to buy the Rio at this end of the market is that it has the most space and largest cabin relative to its rivals, bar maybe the Suzuki Baleno.
All-round practicality is great, with front passengers scoring a low, sporty seating position with a high roof, and so much width in the cabin it almost feels like the Rio belongs in the next segment up.
Storage options up front include a large bottle holder and bin in each of the doors, dual cupholders next to the handbrake up front, and a large storage tray underneath the climate unit. Unlike the Yaris or Mazda2, the Rio features a small armrest console box, which gives a small lift to the ambiance of the cabin.
Back seat passengers are treated to great space for this segment, which feels nice and open courtesy of the large rear windows. At 182cm tall, I have airspace for my knees behind my own driving position, as well as relatively healthy headroom and ample width, which is again more like a car in the next segment up.
Rear passengers don’t get adjustable air vents, but there is a single USB port, a single pocket on the back of the passenger seat, and small bottle holders in each of the doors.
Perhaps the Rio’s biggest drawcard is its boot capacity, which at 325 litres is one of the largest in the city car class. Unlike the Yaris, Mazda2, or Suzuki Swift, the Rio will actually accept the CarsGuide three-piece luggage set with the rear seats up, although the rear view was obscured by the medium case.
Thanks to the boxy roofline, the Rio offers a cavernous 980L with the rear seats folded down, and despite its abundance of room, maintains a space saver spare wheel under the floor.
The Polo features classic light-car proportions, but typical VW touches largely elevate the experience compared to most rivals.
For starters, because it’s German (though built in South Africa), everything feels high quality, even down to the harder lower-set plastics. Contrasting textures, soft cloth and glossy trim really up the ante. Care has obviously been taken here.
Likewise, the front seat area has been designed to easily accommodate people upwards of two metres tall. Just don’t expect much legroom behind. And the driver’s seat can be set ultra low.
Entry/egress is fine, on typically firm-ish yet highly supportive front seats, as evidenced by a four-hour weekender trip away.
The driver is sat ahead of a solid, stylised console angled slightly for a heightened connection to the car, aided by an excellent operating position offering ample reach/rake steering adjustability. Most people should settle in very nicely behind the handsome wheel here. Vision is fine but many competitors do offer deeper side windows for better sightlines.
The updated multimedia system at last brings a volume control, the touchscreen is positioned high for easy access, with crisp graphics and instant responses, and the switchgear have a quality feel to them. And while CityLife’s climate-control slider actuators are nobody’s favourite, this one works as intended. Cheaper grades have basic dials.
Smallish twin cupholders won’t please American-sized drink-holder expectations, but otherwise the Polo’s storage options are plentiful and generous. So is the ventilation output and reliable wireless connection for the Bluetooth phone and Apple CarPlay media, never dropping out once during our entire trip.
Rear-seat room is down basically to how far back the front seats are, but for a car of this size the Polo’s more than fine.
A sufficiently comfy backrest and fixed, sculptured cushion mean this isn’t misery, aided by another helping of the appealing material finishes found up front, as well as the extra side window that makes it feel a little bit airier than many others. And while there are no face-level air vents, the large dash outlets provide enough flow through.
But the lack of a centre armrest means there are no cupholders, so occupants must rely on the (albeit deep) door pockets. At least VW bothers to provide two USB-C ports, a pair of map pockets and big, grippy door handles as a make-do.
Finally, the easy-to-load and quite hungry boot area is big for such a small car and some 25 per cent larger than the previous Polo, offering from 351 litres with the twin backrests in situ to 1125L dropped, and that’s with a space-saver spare wheel underneath the floor.
Value seems less important here when you’re contending with a limited list of potential options at this end of the market.
The Rio S manual currently wears an MSRP of $19,690, and if you’re able to shuffle cogs yourself, it counts its rivals as the Suzuki Baleno GL ($18,490), Suzuki Ignis GL ($19,490), or Fiat 500 Lounge ($19,550).
There’s also the option of the MG3 (from $18,990) or Kia’s own much smaller Picanto (from $15,990).
I’m pleased to report the Rio S is one of the best among these options, though. Not only is this car much more modern in terms of its platform and design than pretty much anything on that list, it packs great standard equipment, too.
The major wow-factor item is the Rio’s best-in-class multimedia system, consisting of an 8.0-inch touchscreen with wireless Apple CarPlay and Android Auto connectivity, just one of the areas where this car will grab eyes over rivals.
Elsewhere is a predictably honest list of standard equipment, including basic halogen headlights, 15-inch steel wheels, manual air conditioning, cloth seat trim with a polyurethane steering wheel, a small multifunction display in the dash, two USB ports, a six-speaker audio system, and surprisingly, steering-wheel mounted controls.
There’s no keyless entry or push-start ignition, and this level of equipment makes you feel lucky to have automatic headlights. Sadly, the S manual also misses out on the basic luxury of cruise control.
It’s cheap, missing a lot of gear, and feels it with an abundance of plastic trims, but somehow this car gets by with almost everything you really, truly need. Sure, it’s a bit of a hark back to the equipment lists of the early 2000s, but if you’re just looking for a basic car to get the job done, you could do far worse than this Kia with its impressive multimedia offering.
Four Polos are available in 2026. The Life starts from $30,990 (all prices are before on-road costs unless otherwise stated), CityLife from $32,790, Style from $34,990 and GTI from $41,990.
All, bar the range topper, use a 1.0-litre three-cylinder turbo-petrol engine dubbed 85TSI, leaving the 2.0-litre four-pot turbo solely for the hot-hatch flagship. An automatic transmission is standard across all models, with no manual availability, unfortunately.
Every Polo comes with LED headlights, adaptive cruise control, an 8.0-inch touchscreen with reverse camera, wireless Apple CarPlay/Android Auto, DAB+ digital radio, electronic instrumentation, smartphone charging, four USB-C ports, parking sensors and alloy wheels (with a spare wheel, thankfully).
Now, the CityLife is essentially the quite plain-Jane Life, but with welcome extra gear you’d expect at the Polo’s lofty base price, including keyless entry/start, climate control air-con, automatic parking assistance, tinted side windows and 16-inch alloy wheels.
The rear cross-traffic alert, blind-spot monitor and matrix LED adaptive headlights safety tech are alone worth the $2200 jump to the Style (again, they ought to be included at this level), which also adds more glamourous instrumentation, glossier trim, sat-nav, multimedia gesture control and fancier wheels that at least inject a bit of upmarket flair.
Never the cheapest in its class, the Polo has long had to rely on notions of next-level quality, engineering prowess and brand cache to make its value-for-money arguments in Australia stick.
Which in some ways is easier today than a decade ago, since so many light hatch rivals from back then have disappeared from the scene – including the Ford Fiesta, Holden Barina, Honda Jazz, Kia Rio, Nissan Micra, Peugeot 208 and Renault Clio. Seriously, we miss them.
Fewer traditional competitors then, yet every remaining direct rival in near-equivalent CityLife specification costs less, some significantly so.
They include the MG3 Essence from just $24,990 drive-away (and even the Hybrid+ undercuts the VW from $30,990 drive-away), Mazda2 GT from $28,490, Suzuki Swift (mild) Hybrid GLX from $31,490 drive-away, the closely related Skoda Fabia Select from $32,390 and Toyota Yaris SX Hybrid from $32,390.
Chinese EVs at or under the same price as the VW include the BYD Atto 1 in longer-range Premium guise from $27,990, the next-size-up BYD Dolphin Essential from $29,990 and GAC Aion UT Premium from $31,990.
Finally, while scores of small SUV alternatives exist, most of the cheapies from China are simply not good enough, except for the (albeit still patchy) BYD Atto 2 EV from $31,990.
On the other hand, worthwhile options from elsewhere include India’s Mahindra XUV3XO in higher-spec AX7L from $26,990 drive-away (bargain!), Romania’s Renault Duster Evolution from $31,990, South Korea’s Kia Stonic Sport from $32,290 and Japan’s Toyota Yaris Cross GX Hybrid and Mazda CX-3 Evolve, from $31,790 and $32,400 respectively.
With opponents like these, it’s little wonder that VW only sold 934 Polos last year against 15,429 CX-3s.
Value just isn’t the CityLife’s strong suit.
The Rio is beginning to fall behind here with an antiquated 1.4-litre four-cylinder non-turbo petrol engine. Peak outputs aren’t far off where they should be for this segment, with 74kW of power and 133Nm of torque, although they arrive at the most distant end of the rpm range (6000rpm and 4000rpm respectively) so you need to rev it.
It can be clumsy to extract this power, too, with the engine paired in this circumstance to a six-speed manual which leaves a lot to be desired in terms of action and clutch feel.
While the abundance of ratios can be beneficial for fuel consumption, it’s clear this car was designed to be paired with the more modern three-cylinder turbocharged engine only available on the top GT-Line trim.
The 85TSI is a 1.0-litre three-cylinder turbo-petrol engine, with direct injection and a start/stop system designed to save fuel.
That said, this EU6 emissions-rated unit provides a healthy 85kW of power between 5000-5500rpm, as well as 200Nm of torque from 2000-3500rpm.
It drives the front wheels via a seven-speed dual-clutch transmission (DCT) VW brands DSG, while other markets enjoy the option of a six-speed manual.
The official 0-100km/h acceleration time is 10.4 seconds, on the way to a top speed of 200km/h.
The Rio S manual has an official combined cycle fuel consumption rating of 5.6L/100km, which is about right for a light car with a small engine.
On test, covering largely urban kilometres, I saw a higher but not unreasonable 7.4L/100km. Still, this number isn’t too far off what some larger cars with 2.0-litre engines are capable of.
Rios with this engine accept entry-level 91RON unleaded fuel, and have 45-litre fuel tanks. They are only compliant with Euro 5 emissions regulations.
The EU6-rated Polo’s ADR 81/02 lab-tested average combined fuel consumption figure is 5.4 litres per 100km, for a carbon dioxide emissions average of 123 grams/km.
Brimming the 40-litre tank with premium unleaded petrol (95 RON minimum is recommended) should result in about 740km between refills.
We managed a respectable 5.9L/100km driving over 605km with the distance-to-empty still showing 85km remaining, while the trip meter’s long-term average read 6.1L/100km.
A six-speed manual with a tiny non-turbo engine is an absolute oddity in today’s new car market, but as a result of its rudimentary approach, there’s something refreshingly honest about the Rio S.
The engine requires a wringing to extract the desired result, and a lot of action on the gears, as six speeds proves to be quite a few to work your way through before you achieve cruising speed.
As so much interaction is required with the transmission, I wish it was tighter when it comes to the clutch which feels a bit doughy at the best of times.
The Rio is very organic, though, with next to no electrical assistance for any of its interaction points offering the driver a high level of control.
The steering is direct, but as a result of a cheaper rack (with less teeth compared to this car’s Stonic relation), it feels simple and brittle when it comes to feedback.
The same criticism can be levelled at the suspension, which errs on the side of firm. This attribute combines with the low seating position to make even this most basic Rio an absolute hoot in the corners.
But it can be a little crashy over every-day potholes and corrugations, despite the abundant amount of rubber cladding the 15-inch steel wheels.
Visibility is superb out of this little car’s big windows, making you feel in control of your surroundings (necessary in the multi-lane confines and tight parking conditions of a city), and ergonomics in the cabin are absolutely on-point with the large touchscreen elements easy to reach and the instruments taking a basic no-nonsense form.
While noise levels are okay at urban speeds, they pick up above 80km/h, making the Rio more unpleasant to drive over long distances than, say, the more upmarket-feeling Yaris.
The Rio does find its place in this price bracket as a fun-to-drive, but predictably rudimentary experience, for the niche audience of drivers seeking an entry-level car who are still able to shift gears themselves.
It is quite astounding how VW manages to maintain a consistency throughout its model range, from Polo to Touareg, and the CityLife’s 85TSI DSG is no exception.
Press the starter button and you’ll barely discern the engine as a three cylinder, so effective is the sound deadening. Slot the satisfyingly normal gear lever into ‘D’ and, depending on your expectations, what comes next seems either a tad frustrating or impressively lively.
Let’s explain this more.
As with almost all turbo/DCT applications, there is a moment’s hesitation due to the turbo spooling and gears meshing up. If you’re rushing to merge with fast motorway traffic or turning at an intersection, the acceleration can feel like it needs forever before the car lurches into action and you’re on your way. Every single time.
Yet, in every other circumstance, the 85TSI is a lusty and lively machine, stepping away eagerly and smoothly under moderate throttle input, with the speed then instantly piling on as the engine’s revs reach towards the 5000rpm sweet spot, accompanied by a throaty exhaust note.
Combined with the ultra-fast ratio changes that the DCT is famous for, this is when you’d call the Polo enjoyably rapid, offering instant response for quick and easy overtaking. And all the while, the powertrain feels and sounds silky-smooth.
We noted that the adaptive cruise control betrays the VW’s age, since it can maintain varying speed with traffic flow, but once fully stopped, it requires the driver to keep a foot on the brake pedal to keep it from releasing and creeping forward (or backward on a hill). Nowadays, most newer systems stay stopped until traffic moves on again. It’s a surprise that the company did not update this with the Polo’s 2022 facelift.
The steering, though, feels state-of-the-art. A real treat, it is precisely weighted and beautifully tactile, for immersive, controlled cornering agility and feel over an impressively broad range of speeds and environments.
On smooth roads the 85TSI’s dynamic fluency is lovely, with the front end working with the keen driver while also providing reassuring grip and control. Yet it’s also light and easy enough to fit in tight spots, or zig-zag through traffic, making it an ideal urban runabout.
After a seemingly endless run of (especially Chinese) EVs and hybrids serving up dull and detached steering, the Polo’s nuance and finesse is a total breath of fresh air. VW, please don’t lose this ability.
The same also applies to the advanced driver-assist systems (ADAS) tune, which works quietly yet effectively in the background without jarring interference. The Polo feels light years ahead here as well.
But a bit more suspension comfort is required when the roads get rough.
Isolating and cushy on the smooth stuff to the point it feels like a luxury car, the suspension starts transmitting bumps and lumps when the bitumen turns bad, breaking the seamless flow of an otherwise accomplished chassis tune. It can also become a bit vocal over coarse bitumen, due to road and tyre noise intrusion.
Otherwise, the 85TSI is a slick and accomplished drive, with a quiet ride and long legs for easy, long-distance cruising.
Just like every other new VW.
Sadly, the Rio S misses out on any advanced active safety items. This is one area where city-sized cars are struggling to keep up, as expensive active safety systems tend to push them well into the mid-$20,000 region.
Unlike the mid-range Rio Sport, the S has no auto emergency braking, lane keep assist, or driver attention alert.
It makes do with the more basic array of brake, stability and traction controls, with the addition of a great reversing camera, three top-tether and two ISOFIX child seat mounting points, and six airbags.
The Rio carries a valid five-star ANCAP safety rating, to an earlier 2017 standard before its missing modern active safety items were mandated.
Tested in 2022 after the Polo’s mid-life refresh, it achieved a five-star crash-test safety rating.
Standard safety features include autonomous emergency braking (AEB, operational from 4km/h to 85km/h and with cyclist and night-time operation), low-speed manoeuvre braking (up to 10km/h), lane support systems (between 60km/h and 240km/h), lane departure warning with steering assist, driver fatigue monitor, parking sensors and full-airbag coverage.
However, for rear cross-traffic alert and blind-spot monitor, you’ll need to pay more for the Style (or GTI), when more modern alternatives offer these inclusive at the CityLife’s price point.
A pair of ISOFIX points as well and a trio of top tethers for securing child seats are fitted to the back seats.
The Rio again gets the edge on its budget competition with a lengthy seven-year, unlimited kilometre warranty. In this space it only butts heads with the MG3, which offers a matching promise.
Roadside assist is included for up to eight years if you continue to service with Kia, and there's also a capped price service program for the duration of the warranty, covering up to 105,000km.
The Rio needs to be serviced once every 12 months or 15,000km, and prices range from $269 and $608 per visit, for an annual average of $409.40.
Not the cheapest servicing schedule we’ve seen, particularly when compared with the likes of Toyota.
The Polo comes with an industry-standard five year/unlimited kilometre warranty, as well as one-year’s free roadside assistance.
This can be extended annually if serviced at a VW dealer. Service intervals are 12 months or every 15,000km.
VW also offers a pay-as-you-go capped-price servicing program. For 2026, prices have been reduced over the previous year, coming in at $425, $681, $407, $1037 and $407 at the time of publishing.
Alternatively, buyers can prepay for a three or five-year service pack to save a bit more money. Three years costs $1507 and five years is $2799.
Note, however, that a Toyota Yaris SX Hybrid equivalent costs about $250 annually to service, or around $1250 over five years.
Finally, there are about 100 dealers or agents throughout Australia offering servicing and mechanical repairs.