BMW News
Best Large SUV Starting Under $220K unveiled!
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By James Cleary · 06 Feb 2026
Understandably, expectations are elevated in this high-altitude corner of the market, the luxury large SUV category (starting under $220K) in the 2026 CarsGuide Car of the Year awards, with our 10 shortlisted models all suitably impressive vehicles.Four contenders from BMW (iX, X5, X6 and X7), three from Mercedes-Benz (EQE SUV, G-Class and GLS) and a solo entry from Porsche (Cayenne) give this group a distinctly Germanic flavour, with singles from Genesis (GV80) and Range Rover (RR Sport) to leaven the mix.In short, there are no bad options here. But, as with any new vehicle purchase, the fundamentals apply. Value, practicality, safety, cost of ownership and driving performance are all critical considerations for prospective buyers. But maybe, just maybe, the badge on the bonnet counts for a lot, too. Voting calculations came down to an exceptionally fine point following robust and positive COTY ‘War Room’ discussion across the judging panel before three contenders rose to the top. Having landed here in 2021, the pure-electric iX was given a mid-life refresh in late 2025 and several judges highlighted the specific benefits it delivered.Contributing Journalist Andrew Chesterton called out its “incredible road presence” and Senior Journalist Chris Thompson noted its bigger battery, increased range and faster charging capacity, introduced with a relatively modest price increase.“After the update it picked up more range. It’s not that much more expensive, it looks cool and points go to BMW for saying, ‘let’s try something with this’,” he said.It was a sentiment shared by Deputy News Editor Tom White who noted: “Every time I drive it I’m shocked with how it feels. It’s really special on the inside and it’s got this ethereal driving quality.“It’s ambitious, and forced other manufacturers to respond. And think about the value play. At the entry point for a combustion X5, you can get an electric one for only a few grand more. That’s pretty impressive,” Tom added. BMW was one of the first premium car brands to jump into the global SUV pond, its X5 sending heads spinning on arrival in 1999. And through four generations it’s maintained status as the go-to five-seater for family car buyers wanting extra luxury, performance and safety to go with thoughtful day-to-day practicality.In summing up its universal appeal, Senior Journalist Laura Berry had War Room heads nodding in agreement when she said: “It’s the 3 Series of SUVs. It does the job so well”.A choice of inline six-cylinder plug-in hybrid, petrol and diesel powertrains as well as a twin-turbo petrol V8 in the powerhouse X5 M illustrates how much the X5 has evolved over time, with pricing and specification consistently fine-tuned to maintain a competitive value proposition. The line-up also won plaudits from Deputy Editor James Cleary who noted the X5’s quality, safety, space efficiency, updated tech and generous standard spec.And then there was one. A mid-life overhaul in late 2023 for Porsche’s ground-breaking large SUV brought a refined exterior treatment and comprehensive interior makeover which, among other things, added a ‘full-screen’ dash treatment.The current 10-variant (!) line-up offers two body styles (SUV and Coupe) and four engine choices (turbo V6 petrol, V6 petrol-electric plug-in hybrid, twin-turbo V8 petrol and V8 PHEV), with prices ranging from under $150K for the entry-level SUV to around $380K for the stonking Turbo GT.News Editor Dominic Tripolone summed up much of the judging group’s feeling for the car when he said: “It does everything a Porsche should but with a family inside”.Chris Thompson chipped in: “Dynamically it’s so impressive. Driving it in anger it’s as if some wizardry has happened. It feels like a sports car.”And Laura Berry also noted Porsche’s ability to make a high-riding SUV behave like a low-slung sports coupe. “It doesn’t feel like it’s made out of separate parts. It feels like it’s one part, so well built it just moulds around you. I love it.”
2026 CarsGuide Car of the Year revealed!
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By Tim Nicholson · 06 Feb 2026
It comes down to this. Seven category winners, seven exceptional cars. But only one can take the crown of CarsGuide’s 2026 overall Car of the Year.The final shortlist for the overall Car of the Year award is made up of the winners of each of our seven categories.This impressive list includes high-end performance SUVs from Germany, new contenders from China, a game-changing ute, family friendly hybrids and top-notch EVs.As a reminder, here are the category winners that make up this final shortlist.Best Small Car Starting Under $50,000 - Kia EV3The Kia EV3 proves small EVs don’t have to be boring. A striking design combined with an engaging drive experience, visually appealing and surprisingly spacious cabin and high levels of standard equipment make for a winning package.Best Small Car Starting Under $80,000 - BMW X1It might not be the newest model on this list, but punchy petrol powertrains and a well-calibrated electric version elevate the BMW X1 above all of its premium small car rivals.Best Medium SUV Starting Under $60,000 - Zeekr 7XThe newest car on this list, the long-awaited Zeekr 7X is a deeply impressive electric family SUV in all grades and proves Zeekr means business.Best Medium SUV Starting Under $130,000 - Hyundai Ioniq 5Perhaps a surprising win against some impressive premium players, but the Hyundai Ioniq 5 deserves this award as it remains one of the most impressive electric medium SUVs money can buy.Best Large SUV Starting Under $100,000 - Hyundai Santa FeA massive step up from the previous model, the new Hyundai Santa Fe has a bold design and a spacious and flexible interior with the choice of two excellent powertrains.Best Large SUV Starting Under $220,000 - Porsche CayenneOutpacing a range of mostly German rivals, the Porsche Cayenne has the performance and prestige to make it the clear standout in the category.Best Ute Under $85,000 - BYD Shark 6A truly game-changing ute, the BYD Shark 6 has brought plug-in hybrid power to the masses in a big way.Such a solid list of winners means the car that took the crown is a special vehicle indeed.Without further ado, the winner of CarsGuide’s overall 2026 Car of the Year award is… the Hyundai Santa Fe!The Santa Fe won over the CarsGuide Car of the Year judges for a variety of reasons.The six- or seven-seat large SUV is hard to fault. It’s a phenomenal family car with acres of occupant space across all three rows and decent cargo space as well. There’s also enough to keep kids occupied in the rear two rows while offering high levels of comfort and refinement up front.Interior design and layout is modern, with a retro twist, and the materials used throughout are second to none. Hyundai has used eye-catching seat materials, while the various touchpoints look and feel like they belong in the premium segment.A Santa Fe highlight is the fact that even the entry grade (simply called ‘Santa Fe’) feels nothing like a base model. In fact, it feels more high-end than top-spec versions of many of its rivals.The availability of two excellent powertrains further boosts the Santa Fe. The 1.6-litre turbocharged hybrid is not just the best choice for efficiency and refinement, it’s also a punchy, engaging engine. But the 2.5L four-cylinder turbo-petrol version is also an absolute hoot.Both are available in front and all-wheel drive, and they come with a full-size spare wheel. Not something every hybrid can claim.Value for money was also a one of the Santa Fe’s biggest strengths. Pricing ranges from around $54,000 for the entry petrol grade and it tops out at $77,000 for the fully kitted out Calligraphy hybrid. Even at the entry point, the Sant Fe is packed with comfort and safety features.Finally, while its exterior design is undoubtedly polarising, the judges agree that it’s a standout among a largely vanilla bunch of family SUV rivals.Not only is the Hyundai Santa Fe CarsGuide’s top pick for a family car in 2026, but we reckon it’s the best car money can buy.A well deserved win for a brilliantly executed car.
Best premium medium SUV under $130K announced
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By Byron Mathioudakis · 06 Feb 2026
With so many new and updated premium medium-sized SUVs starting from under $130K in Australia nowadays, it’s easy to be overwhelmed by the sheer choice available.And that goes for the judges here at CarsGuide as well as potential buyers, because even though our shortlist included models as varied and intriguing as the all-electric Audi Q4 e-tron from Germany, South Korea’s Genesis GV70 in turbo and EV guises, and petrol, hybrid and plug-in hybrid Lexus NX from Japan, our shortlist proved to be a hotly-contested and surprisingly-emotional process. There is so much that’s great in this category!Here, then, are the finalists in alphabetical order, followed by our number one, because there can be only one winner.The latest, and highly impressive, BMW X3 has ended up as a runner up for CarsGuide’s best premium medium SUV under $130K.Four generations in, the X3 has shaped up as a winner, both in the eyes of the judges as well as on the sales charts.It’s easy to see why, with surprisingly sharp pricing – particularly at the lower end of the range – reflecting the edgy yet attractive styling inside and out.Of course, the panel also responded to the X3’s interesting array of hybridised petrol and diesel options, along with the very in-vogue plug-in hybrid (PHEV) choice. Whichever you choose, the driving experience is equally on-point.As one of its core sellers, BMW has given its mid-sized SUV the best-possible chance of success on our market. As Jack Quick put it: “Number one for me by far is the X3. I friggin’ love it… it stands out as a winner.”The latest Macan looks like its super-successful predecessor, is electric only and costs more than most people can afford, but the Porsche’s sheer excellence cannot be ignored.“Genuinely rewrites the formula for Porsche SUVs… it’s a really big swing for the fences.”In a nutshell, this comment from CarsGuide Contributing Journalist Andrew Chesterton neatly sums up what may well be the greatest luxury-branded SUV on the planet right now.Even putting aside the Macan’s obvious controversial aspects, there is so much that will resonate with luxury car buyers, meaning that Porsche has exceeded the brief in most areas.Bold, sculptured design, bank-vault build quality, a deeply sensory-enhancing cabin environment and, not least of all, tremendous dynamic capabilities that simultaneously calm and excite are all part of the latest version’s electrifying experience.Boasting cutting-edge technologies, underpinned by a super-advanced, 800-volt architecture for ultra-fast charging, no other electric SUV feels quite like the latest Macan.The judges certainly see it. But, can enough buyers look past the lack of internal combustion engine choice (for now) and substantially higher pricing compared to before? The jury’s still out on those ones.“From top to bottom it’s an excellent range. I’ve had every car in that line-up. The thing that makes it special is the N. When you've got Porsche chasing you down trying to replicate you, that means a lot.”CarsGuide's News Editor Dom Tripolone sure knows a great headline as well as a great car when he sees one, providing the fitting words for what remains one of the defining models of the 2020s, the Ioniq 5.Recent price hikes that have accompanied technological boosts only serve to highlight the outstanding engineering quality emanating from the Hyundai, particularly when it has already spent half a decade setting class standards. This is a rare example of something that was priced too cheaply for what it can deliver.Timelessly chic, the retro-inspired styling seems to live in a bubble of its own, underplaying a shockingly accommodating interior that has inspired scores of imitators over the intervening years.Yet it is the way the Ioniq 5 drives and feels that truly keeps it fresh. Benign when required, the chassis steps up with impressive agility and control, while retaining the sort of calm and composure expected but often lacking in luxury SUVs costing thrice the price.And, in keeping with its flagship status, the high-performance Ioniq 5 N adds a sizzling new chapter in the book of scorching-hot hatches. As our News Editor so adroitly observed. A worthy winner in the sub-$130K medium SUV segment.
Best Small Car Starting Under $80K announced!
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By Jack Quick · 06 Feb 2026
The premium small car category (starting under $80K) is an interesting one because there are many cars that might not necessarily be cross-shopped, but in one way or another they end up being compared to one another.Our 2026 CarsGuide Car of the Year awards category shortlist saw entrants from Audi, BMW, Cupra, Renault, Smart, Subaru and Volvo. The vehicles range from small petrol hatches all the way to small electric SUVs.Now we’re at the pointy end and it’s time to whittle it down to a winner. First up are the two runners up in alphabetical order, then the category winner.This small SUV from Audi is an oldie but a goodie and that’s how it has ended up as a runner up for CarsGuide’s best small premium car.CarsGuide reviewers love how the Q3, despite its age, still presents well with a stunning exterior design, while the driving experience is elegant, yet fun.“I think it’s such a neatly executed package, it’s hard to pick faults in that car,” said CarsGuide Deputy Editor James Cleary.However there is a new-generation model set to launch locally in early 2026 that could potentially become the new benchmark for the segment.While this French small electric SUV hasn’t stormed up the sales charts like some of its competitors, it’s a dark horse with charming driving dynamics and a stunning interior design.CarsGuide Deputy News Editor Tom White, who had one for a three-month long-term loan early in 2025, noted it’s a car that moves the Renault brand forward in Australia.In fact, he said that everyone who sat in this tester asked if it was a Kia, which he believes is a massive compliment to the Megane E-Tech.The few things holding this car back are the mediocre AC charging rate, plus the Australian-specification car does miss out on things like connected services, which are offered overseas. Thankfully Renault has committed to addressing the latter with an update in 2026.Although it’s been a couple of years now since the current-generation X1 launched in Australia, it still stands out as a segment benchmark, therefore making it a clear choice for CarsGuide’s best premium small car of 2026.“Previously the Q3 was my favourite in that category, I think the X1 does move the game forward,” said CarsGuide Deputy News Editor Tom White.It not only offers class-leading petrol-powered variants, but the availability of electric powertrains in the same body style. All of them have stellar driving dynamics and high-tech interiors.Additionally, besides its compact exterior dimensions, the X1’s clever interior packaging and available storage space makes it almost feel like a mid-sized SUV. You can see why this is now the best-selling BMW in Australia.
Luxury SUVs go hybrid
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By Chris Thompson · 05 Feb 2026
BMW has updated its smallest SUV models with more efficient engines and a new plug-in hybrid (PHEV) variant, but prices are up across the line-up.The 2026 BMW X1 and X2 now no longer run four-cylinder engines for the most part, and a plug-in hybrid variant joins the X1 line-up.New emissions regulations have led to the hotter M35i versions of the X1 and X2 to drop a little bit of power.More changes to the models’ line-ups come with the removal of the single-motor variants of each electric car, the iX1 and iX2. Some pricing has changed, though a couple of models were spared the mark-ups.Starting from the biggest addition, the new BMW X1 xDrive25e plug-in hybrid is a $79,500 ask before on-road costs, landing it roughly in the middle of the X1 line-up price-wise.While BMW says some of its technical details are to be confirmed, an EV range of as much as 86km thanks to a 14.2kWh battery will help the X1 PHEV achieve a fuel consumption rate between 6.3L and 7.1L/100km, BMW says.The all-wheel drive model uses a 1.5-litre three cylinder turbo engine, mostly used in sibling brand Mini’s models, with an 80kW electric motor assisting the operation for a total 180kW/477Nm output.BMW has also streamlined the entry point into each model, both now starting with a front-wheel drive ‘sDrive20i’ variant that features more kit than the outgoing sDrive18i in the X1, and is cheaper than the outgoing all-wheel drive xDrive20i variants in each X1 and X2.They’re powered by similar 1.5-litre three cylinder turbo engines to the X1 PHEV, but feature mild-hybrid assistance for outputs of 125kW/280Nm sent to the wheels via a 7-speed dual-clutch transmission.As well as the drivetrain updates, electrically adjustable heated seats have been added.More small changes come in the addition of silicon carbide (SiC) inverters to the iX1 and iX2, now available only in ‘xDrive30’ variants, though pricing remains the same for each: $86,800 for the iX1 and $87,600 for the iX2.Finally, the performance-focused M35i xDrive variants are each $1000 pricier, while also having their performance culled slightly with no additional features added.Due to the addition of a petrol particulate filter “for adherence to new emissions regulations”, each has been sapped of 12kW meaning outputs are now 221kW and 400Nm on each. Engines are still the same 2.0-litre four-cylinder Full explanations of the changes to the X1 and X2 can be found in the tables below.2026 BMW X1 price Australia *X1 sDrive18i was $62,400, xDrive20i was $72,400 2026 BMW X2 price Australia ** X2 xDrive20i M Sport was $77,900 2026 BMW X1 engine/powertrain and efficiency2026 BMW X2 engine/powertrain and efficiency
The empire strikes back at China!
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By Dom Tripolone · 29 Jan 2026
Chinese carmakers have got the jump on the Europeans, with the emerging brand delivering superior electric cars at cheaper prices. Now German carmakers are finally ready to fight back.BMW is preparing its new iX3, which is the first vehicle off its much ballyhooed Neue Klasse electric vehicle platform.First deliveries commence in Europe in coming months before its Australian arrival mid-year.It appears to be a smash hit before a single order has been filled.According to Autonews, demand has far exceeded expectations and BMW has been forced to introduce a second production shift at its factory in Hungary to catch up.This kind of fever pitch sales run mimics that of some of the most popular alternatives in China.Vehicles such as the Xiaomi YU7 electric SUV, which would be a rival to the iX3, received more than 200,000 orders within minutes of going on sale.BMW sales chief Jochen Goller said customer interest in the iX3 had been “overwhelming”.On paper the iX3 is the most impressive electric car from a Euro maker to date, with some deeply compelling stats.Leading the charge is its WLTP-verified 805km driving range, which leaves a lot of petrol cars in the shade.Next up is its 400kW max charging rate, which BMW claims can pump 350km of range back into the battery in 10 minutes, or recharge from 10 to 80 per cent in 20 minutes.The first grade confirmed for Australia is the 50 xDrive, which has dual motor performance to push out 345kW and 645Nm. This enables it to complete the benchmark 0-100km/h sprint in under five seconds.CarsGuide got to test the new iX3 in Europe in 2025, and can confirm it lives up to the hype.It now appears European buyers think the same, with the iX3 sold out until next year on the continent.Mercedes-Benz also revealed its answer to the iX3 at the 2025 Munich motor show, the GLC EV.It isn’t quite as impressive on paper as the iX3, but its 700km-plus range, up to 330kW charging speed and 4.3 second 0-100km/h time make it no EV slacker.Chinese-owned Volvo is preparing to launch its impressive EX60 this year, too.It’ll match the iX3 in several key areas such as driving range and charging speed.
BMW's performance monsters not going away
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By Tim Gibson · 27 Jan 2026
BMW will continue to produce V8 and V12 engines for some time yet, according to a report in Auto News. Continued big engine manufacturing for BMW was looking bleak as its all-electric plan got underway in 2025.Neue Klasse launched in 2025 as a plan for BMW to step up its renewable endeavours, unveiling a next-generation iX3 electric SUV as its first model.It featured 33 per cent recycled materials and revamped electric power, and was its first model under the new direction for the company. Adding fuel to the fire, BMW ceased production of V8s in its Steyr plant in Austria late last year. Its Munich plant has been at the forefront of the electric shift, as it is retooled for manufacturing electric vehicles. Despite this evidence of a wind down, the German giant's petrol-guzzling engines continue to be a feature across its lineup. There are still 400 workers who continue to manufacture cylinder heads, crankcases and crankshafts for eight- and 12-cylinder engines in Munich. V8 and V12 engine production has been shifted to BMW’s Hams Hall facility in the United Kingdom, where three- and four-cylinder engines have been produced since 2022. The European Union's recent backtracking on its 2035 internal combustion engine sales ban could also re-ignite the BMW's big-engine line-up.The V12 engines are built for Rolls-Royce models such as the Phantom and Ghost, which employ a 6.75-litre twin turbo-charged variant. V8 engines remain available on many of BMW’s high-performance SUVs, including the X5, X6 and X7, with some 7 series sedans also featuring the unit. Australia gets this 4.4-litre twin turbo-charged eight-cylinder engine in those SUVs, which also comes in the M8, getting a hybrid twist in the ballistic M5 sedan and newly-added XM SUV.The United States remains the main driver for ensuring BMW continue to build bigger engines, as they continue to be strong sellers in models.A spokesperson for the US branch of BMW told Auto News demand for V8 engines remains “above average”.It was previously thought the brand would bring its engine production to a close by the end of next year, but it is now unwilling to commit to a fixed end date.
The axed cars you can still buy
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By James Cleary · 25 Jan 2026
It’s a brand new year and brand new car buying thoughts turn to vehicle build plates. Dealers are keen to shift their existing stock before prior year manufacturing dates become a millstone around their automotive necks.But what if the model in question has been publicly put to the sword and it’s not just a matter of a ‘2025 Plate Clearance Sale’?Some of these cars may have been around for quite a while. In rare instances, slow sellers celebrating a birthday (or two?) in retail captivity, waiting hopefully for a new owner to take them to their forever home.These are affectionately referred to as zombie cars. Still offered for sale but the production tap may be about to be turned off, or it’s even been twisted to the right some time ago.If you’re looking for a cut-price new car and you don’t mind if it’s been sitting on the shelf for a period of time, here’s a rundown of some four-wheeled zombies to give you a little extra leverage when twisting a salesperson’s arm.BMW Z4 - This sleek two-seat roadster was developed in a joint-venture with Toyota that also spawned the (similarly discontinued) fifth-generation Supra.Production is scheduled to end this March with a ‘Frozen Matt Black’ Final Edition model including four- and six-cylinder variants, the order window for the car opening and closing this month.But don’t get too excited. Sadly, the Final Edition won’t be available in Australia. However, there are still Z4’s on showroom floors here and there around the country. After all, three found homes in December last year. Get in quick!Fiat 500 - The internal combustion version of this diminutive Italian (in Fiat and Abarth form) ceased production in June 2024 thanks largely to EU safety regulations sending it out of bounds.A 500 Ibrida Hybrid is due to begin production imminently, but it’s quite a different car designed to supplement 500e production (global demand for which has been underwhelming) and riding on the same platform.The ICE car is still offered up on the Fiat Australia website, in 1.2L four-cylinder Dolcevita form at around $30,775, drive-away.Hyundai i20 N - Hyundai has made no bones about the fact its i20N hot hatch is kaput, with production scheduled to finish this March.But Hyundai Australia has reached into the cash drawer and ordered up enough cars to satisfy predicted local demand through 2026.So, this brilliant little performance car will be a zombie in name only. But we wouldn’t leave it too late to get your hands on one. With 150kW/275Nm in a brilliantly responsive compact package it’s not to be missed.Jaguar E-Pace / F-Type - There isn’t a car company on the planet that’s been more transparent about ending production of a current model. In fact, (almost) every one of its models!Jaguar suspended manufacturing of its then existing internal combustion cars in mid-2024 in preparation for a brave new all-electric, ultra-premium future… except for the F-Pace SUV, soldiering on at JLR’s Solihull plant.Amazingly, local sales of the E-Pace SUV grew four per cent year-on-year in 2025 despite the manufacturing halt. And examples of the stunning F-Pace sports car continue to trickle out into the world.Jeep Grand Cherokee - The Aussie axe fell on Jeep’s Grand Cherokee early last year, the once hugely popular model discontinued locally in response to a less than stellar sales performance after launching here in 2023.Part of the problem was a solid price hike for the fifth-gen version and having ripped off the Band-Aid by announcing its local departure, parent company Stellantis promptly dropped the price of the Limited variant to $60,000, drive-away (previously $72,950, before on-road costs).Lo and behold, year-on-year Grand Cherokee sales ticked up 4.3 per cent for 2025, but registration numbers are dwindling now. It’s still up on the website, so it might be the perfect time to move in for a super-sharp deal.Suzuki Ignis / S-Cross - The pocket-sized Ignis SUV was confirmed for departure from the Australian market in early 2025 in response to new Australian Design Rule (ADR) requirements mandating more advanced AEB performance.Examples of the 1.2-litre four-seat city SUV were still rolling out Suzuki showroom doors in December last year so there are cars floating around the brand’s retail network.Same story for the compact S-Cross crossover, which struggled with that ADR compliance and reached the end of the road production-wise around the same time. Again, a number are still finding homes close to 12 months after its death notice was issued.Toyota Fortuner - A clear oversupply of large three-row SUVs was tidied up by Toyota Australia with an announcement to confirm the axing of its Fortuner model in November last year. Which still leaves the Kluger, LandCruiser Prado and LandCruiser 300 as available seven-seat Toyota options.Sharing the same body-on-frame platform as the HiLux ute, the off-road capable Fortuner will finish production around the middle of this year. The Fortuner battled for clear air in the mix with its in-house competition, attracting just 3407 customers in 2025, while the Ford Ranger-based Everest sold 26,161 units.
Australia's best sub-$130K medium SUVs
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By Byron Mathioudakis · 16 Jan 2026
Premium medium-sized SUVs are a small but consistently popular segment of the new-car market, and it’s easy to understand why.While providing an aspirational mix of luxury, performance and technology, they’re still spacious, practical, versatile and – perhaps most importantly – relatively accessible SUVs.Basically, they’re the sporty family friendly reward purchase for people who’ve earned it –which means they have a lot to live up to.As part of our ongoing 2026 CarsGuide Car of the Year awards, here are our top 10 mid-size SUV model ranges from the sub-$130K category in alphabetical order and why they made the cut. Our top three, including the category winner, will be announced on February 6.Nearly four years late to Australia, the Q4 e-tron is available in elegant SUV wagon and racier SUV coupe body-styles that are both pleasingly spacious and practical.And despite leveraging a shared dedicated-EV architecture with other Volkswagen Group vehicles, the interior quality, layout and presentation are on-brand, matching the slick and easy driving experience, with a lovely balance of speed, agility, control and comfort.But the lack of full single-pedal braking and spare wheel are disappointing, while the 55 twin-motor/AWD’s prices are too high.Still, the Q4 e-tron is smart, stylish and sophisticated. And the 45 is all the Audi SUV EV you need.The third generation of Audi’s popular Q5 steps up in several ways, including in price, size and tech, adopting new mild-hybrid assistance for the petrol and diesel choices as well as a PHEV option.Chunkier than before, the Mexican-made medium-sized SUV sits on an evolved architecture. With the same wheelbase as before, it isn’t as roomy as its increased length suggests, whilst the screen-heavy dash looks modern but lacks physical buttons for too many vehicle functions.On the other hand, the boot is big, all powertrains deliver on performance, refinement and efficiency, whilst the handling and ride qualities have improved noticeable from before.Not class-leading, then, but certainly now highly competitive.BMW’s renaissance continues, following on after the excellent X5 and X1, with the fourth-gen X3, sharpening its reputation as the driver’s choice among mid-sized SUVs.Larger yet lower than ever, with ample space, the futuristic, tech-heavy interior is artfully executed, while there’s more equipment as standard nowadays.It’s mild-hybrid xDrive AWD all-round for the punchy inline petrol and diesel engines, along with a PHEV AWD providing ample muscle as well as impressive economy.As you’d hope, the chassis dynamics are first class, with an immersive and flowing driving experience that’s second to none.Expensive options, divisive styling, a fiddly transmission selector and no spare don’t overshadow a brilliantly executed luxury/performance SUV.Another VW Group EV, Spanish brand Cupra’s take on the Audi Q4 e-tron effortlessly melds style and attitude, elevating the genre in the process.With point-and-squirt acceleration, sharp steering and immersive handling – and all without ruining ride comfort – Tavascan is the keen driver’s delight. You can thank the sober German engineering underneath.The interior is spacious for its compact proportions, the ergonomics are fine and the front seats are brilliant, but the scaly-looking dash texture seems cheap, the lack of a spare wheel jars and, being sourced from China, we expect more standard equipment in the base Endurance.Still, there’s personality aplenty in this unique EV SUV and we’re here for it.Challenger brand Genesis’ take on the BMW X3, the GV70’s styling has the visual swagger of a Bentley, while providing a comfortable and functional cabin experience.The Series II facelift brings sweeping improvements, especially to refinement and tech updates, with lots more equipment, upping the lush Korean luxury SUV’s value quotient.Neither petrol engine is a slouch, but the V6’s considerable performance better suits the commanding roadholding and aggressive aesthetics more, while the GV70 Electrified EV’s effortless, isolated pace make it a peaceful retreat. Too bad the former is thirsty and the latter lacks a spare.Whichever you choose, Genesis’ mid-sized SUV is highly enjoyable – and better than you might think.One of this decade’s greats, the Ioniq 5 has been a breathtaking symbol of Hyundai’s tremendous engineering ambition, creating an EV benchmark that’s still yet to be equalled for the money.Yes, prices are creeping up, but the 5’s ability to deliver elevated performance, efficiency, driving athleticism, refinement and pleasure shade rival efforts.And that’s not even taking in the timeless design, vast cabin, thoughtfully presented ergonomics and exceptional practicality.We wish it included a spare wheel and some of the interior plastics look more Aldi than Audi, but otherwise there’s so much that’s radiant about the Ioniq 5. It remains a modern motoring masterpiece. And that’s before even considering the supersonic 5 N that out-Porsches any Macan.The second-gen NX cracks the German mid-sized luxury SUV code that its underwhelming predecessor could not, without abandoning hard-won advantages like exquisite quality and reliability.Basing it on the enduring fifth-gen RAV4 ensures a robust and refined platform, along with affordable hybrid tech access.Yet the NX transcends those with its unique design, sumptuous interior, great seats and ample practicality. The base turbo is rapid, the hybrids are efficient and the PHEV flagship powerful, while the steering, handling and ride qualities are also up to brand expectations.Inevitably, a spare wheel isn’t offered and the PHEV’s electric-only range pales against Chinese alternatives, but the NX provides luxury without the risk.A step forward in quality, ride comfort and refinement over the patchy previous model, the second-gen GLC from 2022 has remained Mercedes-Benz’s best-seller for sound reasons.Along with advanced technologies, a sturdy cabin, top-shelf safety and family-orientated practicality, the GLC provides the luxury of choice – from an attainable 200, through to indecently-quick AMG versions. The newly released PHEV is on the money for buyers seeking efficiency. And the GLC Coupe boasts a sleeker silhouette.The model’s sheer ubiquity may put some people off, options can be very expensive, servicing isn’t cheap, the stop/start tech can be annoying and most models are not exciting to drive, but there’s solid engineering behind the GLC.Devised before the global EV sales slowdown, the second-gen Macan was meant to be a bold, electric-only statement of intent, with Porsche’s formidable engineering expertise delivering a breakthrough experience.Though almost identical at first glance, everything changes, including the body structure and alluring double-screen interior presentation.But it is the 800-volt architecture (shared with the Audi Q6 e-tron) that moves the game on, providing tremendous steering, handling and ride-comfort attributes, along with a powertrain ranging from a brisk (and very on-brand) rear-mounted electric motor opener to the twin-motor AWD missiles.The Macan II’s driver-focused tactility, alacrity and control rewrite the rulebooks. Mission accomplished, then, but we wish it wasn’t so expensive.Launched in 2017, the second-gen XC60 proved to be a compelling premium contender, with lovely proportions, a gorgeous interior, stellar seats and state-of-the-art Volvo safety.An advanced platform provided a sophisticated base, adding to the luxury aspirations of the Swedish family SUV, and enhanced by progressive powertrains, including a rorty PHEV. The XC60 II was ahead of its time.Which explains why the 2025 facelift is so minor – a more-contemporary nose, updated multimedia and fresh trim are the main changes.But the driving experience feels as dated compared to the leading BMW X3 as the styling. Which is classic Volvo: evolve over time. The beloved 240 of the ‘70s lived nearly 20 years and XC60 II could be next!
CarsGuide's favourite premium small cars
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By Jack Quick · 16 Jan 2026
The small car segment, especially on the premium and luxury end of the spectrum, has been very tumultuous over the last few years with hatchback and sedan sales plummeting, while SUV sales have climbed astronomically.In order to combat this, as part of our ongoing 2026 CarsGuide Car of the Year awards, we’ve combined small premium passenger cars and SUVs into this segment.It’s worth noting that each shortlisted small premium car mentioned below is inclusive of the entire line-up, though its entry price must be under $80,000 before on-road costs for this particular category.The following is a rundown of our top 10 sub-$80K small cars in alphabetical order and why they made the cut. Our top three, including the category winner, will be announced on February 6.Note Mercedes-Benz's current A-Class, CLA and GLA were ineligible as they were unavailable for review.While many brands are fleeing this segment of the car market, this German small hatch and sedan is still offered in Australia in a wide range of trim levels and variants. Beyond the normal A3 variants, there’s the sporty S3 and the fire-breathing RS3.It notably made this shortlist due to the latter which is still offered with an iconic five-cylinder engine. However, we do wish it made just a bit more noise like the older models did.Beyond this, CarsGuide reviewers praised the A3 line-up for its capable and engaging driving dynamics, as well as its luxuriously equipped and premium-presenting interior.While the A3 hatch and sedan may be newer, the Audi Q3 small SUV has been soldiering on for a couple of years now without any major updates.The current model is reaching the end of its lifecycle and is set to be replaced by a new-generation model during 2026.Despite this, CarsGuide reviewers liked how the Q3’s exterior design is ageing, even in the polarising Sportback body style, plus the on-road manners are both elegant and fun.The new-generation version of the BMW 1 Series hatchback launched locally late in 2024, offering everything from everyday commuter trims to the M135 xDrive hot hatch.CarsGuide reviewers were impressed with its driving dynamics and outright performance, though fuel efficiency took a hit as a result.Additionally we liked the new and modern front-row layout, however the exterior design, especially at the front, likely isn’t for everyone.The X1 small SUV is the most popular BMW in Australia currently and for good reason.It launched locally in new-generation guise in 2022 to popular fanfare, then the all-electric iX1 variants joined the line-up in 2023, cementing its status as a benchmark small SUV.CarsGuide reviewers praised X1/iX1’s on-road manners, as well as the modern and high-tech exterior and interior designs. However, common European quibbles like tyre roar and suspension bumps can intrude into the cabin.The X2 is a swoopy ‘coupe’ SUV counterpart to the X1 small SUV and still notably offers both petrol and electric (iX2) powertrain options.While its exterior design is polarising and not for everyone, CarsGuide reviewers appreciated how polished the drivetrains feel from behind the wheel. The X2/iX2 is also affordable when compared to premium rivals from the likes of Mercedes-Benz and Volvo.The few dislikes were centred around the X2 M35i xDrive’s firm ride due to its large (and thankfully optional) 21-inch alloy wheels, as well as the slight reduction in boot capacity over the X1/iX1.This spicy Spanish small crossover SUV is the clear front-runner for Cupra in Australia. Arriving in 2022, the Formentor is offered in a range of variants from warm to hot, plus even a plug-in hybrid (PHEV) offering.CarsGuide reviewers appreciated the lifted hatchback looks and the smile-inducing driving dynamics, however some found the multimedia system to be a little finicky and the ride a little too far on the firm side.An oft-forgotten entrant in the small SUV segment, this quirky French electric SUV impresses with its sleek design, maximised interior space and reactive driving feel.There is currently only one trim level of the Megane E-Tech offered in Australia, the Techno EV60, and it’s limited by its 7.4kW maximum AC charging rate, plus the lack of features like connected services that are available overseas.A huge step away from the iconic Fortwo of the early ‘00s and ‘10s, the Smart #3 is the brand’s largest car in Australia to date.With unique looks and a premium cabin feel, the #3 impresses though the driver-assist features can be a little overbearing and the panoramic glass sunroof has no sunshade.More sore points are the average warranty coverage of five years or 150,000km, as well as the hefty servicing costs for an electric vehicle.While a number of these shortlisted vehicles are high-tech or electrified offerings, the Subaru WRX stands out as a purist sports car.Still featuring a turbocharged four-cylinder boxer engine and a manual transmission in certain trim levels, the WRX is offered in sedan and wagon body styles.CarsGuide reviewers praised the WRX’s dynamism, practicality and even value when compared to rivals with similar amounts of power. However, the WRX Sportswagon only comes with a continuously variable transmission (CVT) and doesn’t look as sporty as the standard WRX sedan.This vibrant and quirky Volvo electric SUV stands out on the road thanks to its stunning exterior design with boxy proportions.The interior also stands out, but sometimes not in the best of ways. CarsGuide reviewers found too many of the key features are tucked into menus on the central touchscreen, plus the lack of a proper instrument cluster was grating.