What's the difference?
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.
Back in 2010, Mitsubishi released Australia’s first mainstream electric vehicle (EV) in nearly a century.
That model, the i-MiEV, was a four-seater city-sized Kei car from Japan that cost $48,800, before on-road costs, or from roughly $70,000 in today's money. Little wonder it bombed. That was four times more than petrol-powered equivalents of the time.
Now, in 2026, the new BYD Atto 1 is the first EV sold here since the i-MiEV’s 2013 departure to be considered a four-seater city car.
It’s also the least-expensive EV money can buy, being even cheaper than many internal-combustion engine alternatives like the Mazda 2 and Toyota Yaris hybrid. The fact is, there’s nothing remotely near the Chinese supermini’s base price that’s electric.
But is the Atto 1 any good?
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.
The BYD Atto 1 has already earned its place in history as the cheapest new EV ever sold in Australia. And the good news is that, on the strength of bigger-battery Premium version, it rarely puts a foot wrong as a city car, exceeding performance, efficiency, refinement and comfort expectations. The Atto 1 really delivers around town.
But the baby BYD’s price is too close to larger EVs with better range, while extended exposure reveals issues with seat comfort, touchscreen access/distraction, ADAS interference and nervous steering feel at speed. Australian road tuning is required to rectify these.
Still, as a cheap urban EV runabout, the Atto 1 Premium still (just) stands alone. A glimpse into the future, someday, all city cars will likely follow in the bold BYD’s footsteps.
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.
Fun fact. Designer Wolfgang Egger was responsible for the gorgeous Alfa Romeo 156 of 1997 among others, as well as some Audis and Lamborghinis later on. You can definitely see the latter’s influence in the Atto 1’s angular face.
Based on the Dolphin architecture and badged the Dolphin Surf elsewhere (as well as Seagull but that name wouldn’t fly here), the BYD’s boxy proportions are pure supermini and is about the size of the previous-generation Honda Jazz.
However, the designers have added some crossover cues to the styling, including plastic cladding around the wheel arches, to give it a pseudo SUV look.
Inside, though, the Atto 1 is unashamedly hatchback in layout and appearance, with a contemporary, minimalist dash, big central touchscreen with precious few buttons and loads of storage.
In other words, a typical modern small car from China.
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.
The BYD’s boxiness sure pays dividends accessing the Atto 1's interior, aided by tall doors, a high roof and lofty seating.
Initial impressions are very positive.
Lots of space, a decent driving position (in the Premium at least; the Essential has rake-only steering adjustment), grippy little wheel and a solid look and feel impart a sense of quality. This does not seem built down to a price.
The elevated centre console/fixed armrest provides ample storage below and easy reach of USB ports, sturdy cupholders above and a raised smartphone rest that doubles as a charger (again, only on Premium), allowing for quick downward glances without having to touch the device. Helpful.
Further points are won due to the very clean and minimalist dash presentation, with an electronic instrument display ahead of the driver (not a given nowadays thanks to Tesla’s minimalism-gone-mad influence), offering all the information you need in a concise and notably colourful manner.
That 10.1-inch central touchscreen, meanwhile, is probably one of the better examples from China, possessing superficially logical operation, clear markings and a row of fast-access icons for climate, audio, vehicle function, home screen and other controls.
However, the more time you spend in the Atto 1, the more the cabin doesn’t stand up that well under scrutiny.
The shapely tombstone-style front seats, which look a million dollars, are comfortable on short journeys but disappoint during longer drives, revealing a lack of sufficient back and thigh support.
There are no regenerative braking paddle shifters for single-pedal driving, just an on/off tile requiring a distracting and time-consuming touchscreen-menu deep-dive.
In fact, most functions demand at least one or two eyes-off-the-road-ahead prods of the screen, which is annoying and potentially hazardous.
Using the climate control is a good (bad) example.
Infernally fiddly screen slide controllers that are hard to pin-point with a hovering finger while the car is moving, let alone modulate, leads to temperature-selection fury. And those vinyl seats are clammy regardless of humidity levels and their perforations don’t help. Setting the desired climate environment is an utter faff.
And why must BYD’s synthetic leather smell so pungent? The off-gas odour can be nauseating for some on warmer days.
Worse still, even a glance towards the touchscreen sets off the distraction nannies. Frustrating. So is the intrusive lane-keep assist tech, unless you keep the car perfectly centred, with its constant nudging of the wheel while it nags away. More like Aggro 1.
Inevitably, turning these and other ADAS warnings off requires several menu deep-dives, leading to more driver-distraction paranoia. It’s a circle of stupidity for tech that’s meant to protect. And every new drive defaults to ‘on’. It's an infuriating mess.
Meanwhile, the Atto 1’s (two-person-only, remember) rear seat area also starts off promisingly, with easy entry/egress, adequate space (even for long legs and big feet) and a backrest and cushion combo offering sufficient comfort and support.
Amenities include useful door storage, overhead grab handles and map pockets, while the back of the centre console provides a cubby area just wide enough hold a bottle or larger keep-cup. That’s necessary because there is no folding armrest or subsequent cupholders back there, nor reading lights or USB ports.
And while the upward sweep of the window line means the rear can seem dark, the shape of the front seats allows some vision around and even through them for rear occupants.
Further back, the boot area is larger than the BYD’s diminutive size suggests, at 308 litres with backrests erect and 1037L with them folded forward.
The deep floor hides an even deeper cavity that’s large enough for charger cables, laptops and other paraphernalia that should be out of sight. That almost negates the need for the AWOL luggage cover.
But there's also a tyre repair kit instead of a spare wheel in there, and regular readers will know how incorrect that is. Every vehicle sold in Australia should come with one. Even city cars.
Loading/unloading is easy and there are hooks to secure things to, but clearing the high lip may be an effort for some.
And, though an EV, the is no extra storage to be found under the bonnet. The Atto 1 has no front boot, or froot.
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.
And… what a perfect time to release Australia's cheapest new EV!
Sat alongside the base Essential from $23,990 (all prices are before on-road costs unless otherwise stated) is the Premium as tested here, starting from $27,990 and representing a $4000 difference.
But oh, what a difference.
The cheaper Essential comes with a 30kWh battery, providing a WLTP range of just 220km. Usefully, the Premium’s battery is 44 per cent larger at 43.2kWh, boosting range to a more-comfortable 310km, while power jumps by 77 per cent.
Every Atto 1 includes synthetic leather-trimmed seats, a 10.1-inch central touchscreen, rear camera with sensors, adaptive cruise control as part of some Advanced Driver Assist Systems (ADAS) tech (more on safety later on), wireless Apple CarPlay and Android Auto and even Vehicle to Load (V2L) functionality, so you can use your hairdryer on the fly. Handy!
However, the Premium ups the ante with a surround-view monitor, powered and heated front seats, reach as well as rake adjustment for the steering wheel, a wireless charger, LEDs rather than halogen headlights and 16-inch alloy wheels instead of 15-inch steelies with hubcaps.
But… both are four-seaters only. And neither offers an exterior temperature gauge, remote keyless entry from the passenger side (you’ll always need to press a fob), a luggage cover or a spare wheel – just the totally-unsatisfactory tyre repair kit.
Plus, there’s no heat pump so, in winter, turning the temperature up will drag range down noticeably, while a lack of liquid cooling for the battery will do the same during a hot Aussie summer, since the AC has to work overtime doing that job instead.
And we’re not convinced the Atto 1 represents such great value.
Yes, that small-battery Essential undercuts every hybrid bar Suzuki’s (mild-hybrid) Swift, including the MG3 Hybrid+ and Toyota Yaris HEV, and even the ageing Mazda 2 petrol costs more, but its limited range means it’s better as an inner-urban, small-distance-only commuter proposition. Best as a second or even third car.
Meanwhile, the bigger-battery Premium is priced perilously close to significantly larger EVs with greater range, including BYD’s own Dolphin from $29,990, the MG4 Urban from $31,990 drive-away, GAC Aion UT from $32,990 drive-away and the coming Geely EX2.
And, alongside cheaper-still petrol-powered alternatives such as the Kia Picanto, MG3 and MG5 sedan, there are also smaller SUVs that slip beneath the bijou BYD, like the Chery Tiggo 4, Haval Jolion, Hyundai Venue, Mahindra XUV 3X0 and MG ZS.
What we’re saying is, unless the Atto 1’s sub-four-metre length and narrowness are paramount, it’s behind the eight-ball for value against an array of more-substantial alternatives costing not much more.
Still, we get this is that rare thing today, a truly-new city car and we’re here for that.
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.
The Atto 1's electric motor is offered in two output choices. Either way, it can be found under the bonnet and driving the front wheels via a single-speed transmission.
The Essential scores a low-power version making 65kW and 175Nm of torque, which is enough for a 0-100km/h sprint time of a still-decent 11.1 seconds, while the Premium’s high-power unit ups those to 115kW and 220Nm respectively, shaving two seconds off in the process. Top speed is said to be 135km/h.
Note that, while the latter grade’s 43.2kWh battery adds 96kg overall compared to the smaller 30kWh model, it still enjoys a way-superior power-to-weight ratio of 82.7kW/tonne versus just 50.2kW/tonne.
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.
The official consumption average for the Essential is 15.5kWh/100km and its 30kWh 'Blade' LFP (Lithium Iron Phosphate) battery offers a WLTP range of 220km.
The 43.2kW Premium bumps the energy use figure up to 16kWh/100km but offers 310km WLTP.
We came close to latter claim, with 263km of mixed driving and still showing about 10 per cent of range left, while the car’s consumption readout averaged 13.7kWh/100km overall. That rose to 16.5kWh/100km during a stint of harder, highway-heavy driving.
Charging times vary. With an 11kW AC capability on both grades, the Essential needs up to 16 hours and the Premium 22 hours plugged into a regular socket, and five and seven hours respectively using an optional 7.0kW Wallbox.
Meanwhile, switching to DC fast charging, the Essential’s 65kW capability means a 10-80 per cent top-up can be achieved in under 40 minutes, against the 85kW Premium’s 30 to 50-minute requirement.
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.
Sadly, we cannot comment on how the 65kW/175Nm Essential drives, but with 77 per cent more power and 25 per cent more torque, the 115kW/220Nm Premium’s performance is one of its calling cards.
Lively off the mark, even in Eco, it thrives in inner urban environments, with instant throttle response for effortlessly zippy and smooth acceleration, as you’d expect of an EV.
And it just keeps on keeping on at speed, giving the Premium a terrific breadth of performance flexibility. We’re now very curious to see how the Essential goes.
Armed with light and alert steering, the Atto 1 can weave in and out of traffic gaps with confidence and precision, and is backed up by a super-tight turning circle to boot, so parking manoeuvres around town is a doddle.
BYD’s decision to set up the chassis for a soft, long-travel suspension is appreciated, since the Premium takes most bumps and humps in its stride, making this one of the comfier city cars around.
Road and tyre noises are omnipresent, but aren’t not too bad overall by supermini standards, while the Hankook 185/55R16 tyres deliver sufficient grip, even over some rain-soaked roads we endured.
Most of these Atto 1 attributes also translate well at freeway speeds, with the Premium offering ample muscle for overtaking, slick steering responses and a planted chassis feel.
But, once you hit some faster corners, the BYD’s reactive steering, lofty seating and cushy suspension conspire to create considerable body movement, especially through tighter bends, scrubbing the front wheels as it turns wide (understeer).
Yet, press on a bit harder, the Atto 1 can instantly change its attitude to oversteer, feeling darty as weight shifts from the rear, making the steering suddenly too sharp and the car too nervous, Even experienced drivers might hesitate to carry on. And this happened on dry roads.
Of course, the BYD is a city car so not designed for sports-car handling, but it does lack the confidence and control of a hard-driven Mazda 2 or Suzuki Swift. Strangely, it seems more SUV-like than supermini, dynamically.
Most owners won't care, but they will have to live with the infuriating ADAS tune, with inexplicably sudden braking when the adaptive cruise control is on, and lane-support systems that all-too-often tug and bleat endlessly like an agitated goat, becoming too distracting, and requiring far-too-fiddly touchscreen menu diving to silence, especially as they default back on with every restart.
The driver-attention warning is also in a semi-permanent state of nerves, squawking all-too-regularly unless the driver is sat perfectly still, and will easily escalate the danger level to “take-a-break” should you dare move about in your seat. Which would be regularly, due to the latter’s lack of enduring support. A literal and metaphorical pain.
Clearly, then, the Atto 1 can really do with some Australian road tuning and on a number of fronts at that. Until this happens, these are the dark clouds blighting the blue skies that this car’s otherwise sunny disposition delivers with every urban drive on a daily basis.
Or, in other words, stick to the urban jungle.
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.
The Atto 1 debuted in China back in 2023, but this is a facelifted, international-market version evolved mainly for European consumers, so crash-tested by Euro NCAP only last year, and scoring a maximum five-star ANCAP rating.
Note, though, that while the baby BYD includes Autonomous Emergency Braking (AEB) with forward collision warning, lane-departure assist and adaptive cruise control as standard, there is no blind-spot monitor or rear cross-traffic alert. Odd for a city slicker.
Six airbags are fitted, including curtain protection for all outboard occupants, while there are two rear-seat sited ISOFIX anchorage points and child-seat tether points behind each backrest.
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.
Here’s where the BYD slips up a bit.
Yes, it comes with a better-than-industry-standard six-year warranty, but many rivals offer between seven and 10-year coverages, while the Atto 1’s mileage warranty is capped at 150,000km when most others include unlimited mileage. And roadside assistance is only for one year, as well.
Service intervals are every 12 months or 20,000km. Capped-price servicing is available, but no precise figures were available at the time of publishing.
Estimates are from under $200 for the first and third annual services, and from $500 and $650 for the second and fourth yearly visits, respectively. Please check with BYD for updated figures.
Currently there are about 105 BYD service outlets throughout Australia, with 30 more expected by the middle of 2026. This should address one of this brand's biggest concerns – sufficient after-sales care.