Hatchback News

MG is continuing its budget EV push with a new hatchback launching in 2027 set to take on the BYD Atto 1. It is sized for the B-segment, meaning it sits on the smaller end of the hatchback scale. Based on this, it is expected to be smaller than the MG4 and MG4 Urban, so it could end up being the cheapest model in MG's line-up. MG Australia has previously said it does not comment on future models or product details, so it is unclear whether it will eventually make its way Down Under. The local branch has been contacted for comment to see if the new hatchback will launch in Australia. There are limited other details available at this stage, but the brand has provided a couple of teaser images of the new hatch. It will have a bubble-like exterior design, including a pixelated front headlight design. There will be a rear roof spoiler and the rear headlight design is split into four quarters. It lines up as a direct threat to the BYD Atto 1 that currently holds the title for the cheapest EV in Australia, starting from $23,990 (before on-road costs). MG’s cheapest EV in Australia is the recently-launched MG4 Urban, with a starting price of $31,990 (drive-away), so this incoming hatch could be the budget rival MG needs. We will get a closer look at the new hatch early next month. MG’s cheap small cars remain the most popular of the brand’s offerings as it holds onto a place in the top 10 best-selling brands Down Under. Its ZS small SUV is the brand’s best-selling model, followed by the MG3 hatch. Together they contribute nearly half of MG’s sales in Australia. 

There’s no worse feeling than showing up to the party just as it’s winding down and everyone else is leaving. Well, perhaps showing up a day too early and missing all the fun entirely.I imagine that must be what it feels like for the people that designed the cars on this list. In recent weeks we’ve looked at how timing is crucial in the car industry, with electric vehicles and plug-in hybrid sales spiking as fuel prices soared in March and April, brands like Tesla and BYD have benefited from having the right cars at the right time.And as we’ve also looked at recently, sometimes car makers just completely miss the mark and introduce the wrong car and it was never going to succeed.But today we’re looking at the most unfortunate of vehicles - the cars that had the right concept and had the potential for success, but arrived either too early or too late to make an impact.We took a deep dive into the premature arrival of the Volt, but it’s worth reiterating that Holden was way ahead of the curve when it came to plug-in hybrids (PHEVs). Unfortunately, too far ahead.Sure, the Volt was overpriced (starting at $59,990 in 2012), but the technology wasn’t far away from what the likes of BYD and GWM are having huge sales success with today. Perhaps if Holden had pursued this technology further, or subsidised it to get more vehicles on the road, things might have turned out differently, but we’ll never know…The arrival of the MG4 Urban is a textbook demonstration of the right car arriving at the right time - a small and affordable EV at a time when people were feeling the pain at the pump. The Chinese brand’s MG7, on the other hand, will likely be a case study in getting the timing wrong.It’s hardly breaking news that sedans (and liftbacks, such as the MG7) are no longer in hot-demand in Australia… or really much demand at all.The BYD Seal and the Toyota Camry are the only exceptions and despite the MG7 looking great, having a punchy turbocharged petrol engine and a competitive asking price, it is likely to sell in very small numbers. MG Australia has sold less than 100 in the first five months of 2026, so it’s likely to be a rare sight on the roads.Buyers are simply too focused on SUVs to consider a sedan.Of course, the sedan was not always an unloved, niche corner of the market. The glory days of Holden and Ford saw Commodores and Falcons dominate Australian driveways. Towards the end, the performance-orientated models, such as the Commodore SS and Falcon XR6/XR8, became beloved, so much so Kia saw an opportunity.The Stinger was a direct rival to the local sports sedans, with a twin-turbo V6, rear-wheel drive layout that gave it solid credentials. The initial ride and handling tuning was slightly off, making it a bit more ‘skid happy’ than a family sedan should be, but overall the Stinger was a good car.Unfortunately its arrival almost perfectly coincided with the beginning of the end of the local sports sedans and the customers Kia was hoping to find had simply moved on.As the likes of Tesla, BYD, MG and Geely dominated the discussion around EVs, it’s easy to forget that Nissan was right at the forefront of this technology. If Nissan launched a small, electric hatch for $39,990 today it would be a great addition for the brand and give its Chinese rivals something to think about.Unfortunately the Leaf arrived too early, before the wider car-buying public had EVs on their radar, and initially launched with a $51,500 price - which was much too much money for a hatchback.In the end, Nissan did give the Leaf plenty of time and opportunity, spending more than a decade on sale, but it was never the right moment for it to find major sales success.A compact SUV, built in India to give it a competitive asking price is arguably exactly what Ford Australia needs now. Unfortunately, they launched the EcoSport way back in 2013.What makes the EcoSport really earn its place on this list is it somehow managed to be both ahead of its time and arrive too soon.When it launched in 2013 it was one of the first compact SUVs on the market, beating the likes of the Hyundai Venue, Kia Stonic, Mazda CX-3 and Suzuki Jimny. But Ford slightly missed the mark with the EcoSport, building a pint-sized SUV rather than a jacked-up hatchback, which is ultimately what the market decided it wanted a decade ago.But Ford would be well-served to have a sub-$30k, fuel-efficient compact SUV at this particular moment in time, especially one that is a bit more rugged and less hatchback, like the EcoSport was, to fit with its Ranger/Everest image.

Australia might be a big country, but we do like our small cars.These little vehicles are generally affordable and typically energy efficient — both the petrol and electric ones. They also fit into tight car spaces and zip through narrow city streets. These pint-sized machines can be fun and easy to drive, which makes them great first cars or even last cars for those who don’t need something giant.So, we have compiled a list of the five smallest cars in Australia.Dimensions: 3860mm long, 1735mm wide, 1520mm tallWho doesn’t like a Suzuki Swift? This Aussie favourite has just scraped into our top five at just under 3.9m long. The Swift is loved for its practicality, with four doors and five seats, and it’s fun-to-drive nature - especially the Sport version. There’s a choice of hybrid and pure petrol powertrains, but no fully electric Swift unfortunately. The Swift scored three stars out of five in its ANCAP safety test in 2024.  Prices start at $24,990 drive-away. Dimensions: 3858mm, 1967 wide, 1460mm tallWhoever said Minis were now so big they’re no longer mini was wrong - also, that was me who said it. The Mini Cooper three-door is the miniest Mini, and the electric version is a tad shorter than the petrol variant. And while it is shortest in height here and only just 3.8m long it’s actually the widest in our top five. The Mini Cooper has four seats, a 210-litre boot and scored the maximum five-star ANCAP rating.Prices start at $53,990 for the electric variant and $41,990 for the petrol version.Dimensions: 3825mm long, 1610 wide, 1575mm tallThe Hyundai Inster is a fully electric little SUV with four doors, four seats and a 351-litre boot.A range of up to 360km makes it very usable for city dwellers, or those who don’t do many miles each week.The Inster has rugged but cute looks, and a starting price of $39,000 makes the Inster a very affordable EV.The Inster scored four out of five stars in ANCAP tests. Dimensions: 3631mm, 1900mm wide, 1529mm tall The Fiat 500e has two doors, five seats and a 185-litre boot. Yep, it’s probably the least practical tiny car on our list but it's also one of the most fun to drive with its electric powertrain.It's a small car with a big price. The 500e starts at $58,900. Yes, that's outrageous, and we wouldn't be surprised if at some point the 500e is withdrawn from Australia due to the low sales. Still that might be a good way to bargain your way into one.It also scored four stars in safety tests.Dimensions: 3595mm long, 1595mm wide, 1485mm tallThe Kia Picanto is our top five tiny cars winner at less than 3.6m long. It’s also the most popular micro car in Australia and it's easy to see why. Its starting price is $19,190, the value and standard features are outstanding and it’s good looking. Four doors, five seats and 255 litres of boot space. It’s smaller than it sounds, seriously. There’s no EV version of the Picanto, and the one sold in Australia has a four cylinder petrol engine. The four-star ANCAP rating from 2017 is now out of date.

China may hog much of the automotive headlines nowadays, with its aggressively and allegedly heavily-subsidised cheap vehicle-export strategy.But it is the South Korean carmakers Hyundai, Kia and even KGM (formerly SsangYong) that have come of age this decade, through engineering excellence, bold design, visionary product planning and sheer value for money that is the envy of the rest of the world.In fact, every year since 2020, a Korean vehicle has stood out above all others in some way, showing up anything Japan, Germany, France, Italy and America can do.Korea is the actual fear of the rest of the world, and here’s why.China dominates the electric vehicle (EV) segment in many parts of the world with unfeasibly inexpensive models that have democratised the technology.But the Hyundai Motor Group (HMG), which includes Kia, that makes the best affordable EVs, due to progressive technologies that, in models like the Hyundai Ioniq 5 and Kia EV6, have included faster-charging 800-volt architectures, Vehicle-to-Load (V2L) tech and other advancements that were the provenance of high-end European marques like Porsche.And let’s not forget the brilliant ballistic missile that is the Ioniq 5 N, a performance grand-touring hot hatch that redefines what an EV can do.HMG invested billions in electrification well before most other mainstream carmakers during the 2010s, gaining experience with early EVs like the original, Toyota Prius-esque Ioniq, Kona Electric and Kia Niro EV, allowing Korea to forge ahead with next-gen models nowadays.Sticking with the Ioniq 5, this is an incredibly talented mid-sized SUV for a number of other reasons besides breakthrough EV engineering, such as for design, interior packaging and overall sophistication.It still turns heads with crisp, timeless design that plays lip service to Hyundai’s first in-house-developed production car (the 1970s Pony), while it has a loping, relaxed refinement that embarrasses most other SUVs, period.For us, the Ioniq 5 remains a leading candidate for the car of the decade, even though it launched back in 2021.In 2026, the Kia EV3 is arguably the best small SUV EV for the money on a number of fronts, especially where Chinese vehicles struggle with, including unintrusive advanced driver-assist systems (ADAS) tech, user-friendly vehicle controls, regional steering and suspension tuning and Australia-wide servicing access.More than the sum of its parts, the EV3 simply behaves and drives like a good car should, with few vices or frustrating surprises.Everybody remembers the Kia Stinger of 2017, an ambitious but ultimately doomed final attempt at a large, rear-drive family sedan in the mould of the Holden Commodore and Ford Falcon.A glorious failure, it cemented Kia a place in the hearts of performance family sedan fans.Except… its spirit lives on in the award-winning Kia EV6, the just-as-talented but far-sleeker cousin to the Ioniq 5, melding the packaging, practicality and performance of, say, a VF SS or Falcon XR6 Turbo, within an EV proposition.And, guess what, with Millennials and Gen Z buyers rejecting SUVs and crossovers as daggy and boring, it is Kia that is poised to step up with a cool, sleek and sophisticated liftback. So much more mature and charming than a Tesla Model 3.For most of this decade, it has been Korea that has offered Australia’s cheapest new car in the Kia Picanto.Yes, it’s old and one of the smallest on the market, but the Picanto’s proven reliability, solid engineering, decent safety specification, long warranty, dealer-network back-up and decent dynamics make it a dependable and enjoyable runabout.Nowadays the improved second-gen MG 3 is nipping at the Kia’s heels, but Kia has no intention of abandoning the bargain basement in Australia… we hope.Kia has obviously shot itself in the foot with the Tasman because of its kooky, oddball styling.But the sole Korean body-on-frame one-tonne ute is currently the best in its diesel-powered class, with a lovely, refined and roomy interior, excellent workhorse capability, a powerful yet proven and efficient powertrain and pleasing servicing back-up.The Tasman is also impressive to drive, and we do not hesitate to recommend one over its rivals – especially as a long-term ownership proposition.No DPF issues like the Toyota HiLux or engine-belt and transmission problems that reportedly afflicts the Ford Ranger, either. The Kia is a better vehicle than either of these segment best-sellers in our estimation.In North America, the Ford has prised open the car-based, monocoque-bodied, dual-cab ute market wide open with the SUV-derived Maverick, and that’s a deserved success for the hybrid and turbo-petrol-powered pick-upYet it is Korean minnow KGM that has pioneered the similar concept, but as a battery electric ute, with the Musso EV.Along with being a good-looking, comfortable and refined five-seater family car, it is keenly priced, well equipped, decent to drive and everyday-useable thanks to a WLTP range of between 380km and 420km.Plus, and, in keeping with the Musso heritage, there is some ute functionality on offer, including AWD availability and an 1800kg braked towing capacity.There’s nothing even remotely like it in Australia right now that combines all of the above, except from KGM. Which shouldn’t be too surprising, given that the original Korando all the way back in 1983 was named for the contraction of the term “Korea can do”.

GWM has just stepped up its budget EV game in Australia, unveiling the Ora 5 hatchback.There is no official news on a launch for the Ora 5 hatchback, but there is a good chance it will hit showrooms before the end of the year, with deliveries of the SUV variant already beginning.GWM Australia has been contacted for comment to find out launch plans for the car. The Ora 5 hatch shares much of the same design and set-up as its SUV sibling, but it has been given a lower and sportier stance, according to GWM. It differs from the SUV as it does not featuring roof rails. It keeps the same bubble headlight design and general exterior look. GWM also confirmed it has the same 58kWh battery with a driving range of 435km on WLTP standards. The brand did not confirm what will power the hatch, but given it is so similar to the SUV, it is expected to have the same single electric motor producing 150kW and 260Nm. Pricing remains unknown at this stage, but there is potential for it to be priced under the SUV, which starts from $33,990 (drive-away).The news comes after the brand ditched its Ora hatch Down Under earlier this year to make way for the Ora 5 SUV. The Ora faced serious budget competition from other Chinese rivals such as the BYD Dolphin that is priced from under $30,000 (before on-road costs), while the Ora was priced from $35,990 (drive-away).Competition in the EV hatch space has increased significantly, including the arrival of the GAC Aion UT ($31,990, before on-road costs). The Ora 5 is generally bigger than many of these EV hatch rivals.It joins at a time when GWM continues to grow on the sales front and chase down legacy brands in Australia.Chinese competitors such as BYD and Chery have experienced more growth than GWM in 2026, with the affordability proving a key selling point.

An iconic revamped hot hatch from Peugeot is about to take a big step towards an official launch. The fully-electric Peugeot E-208 GTI will launch later this year as Peugeot seeks to transition one of its most iconic nameplates into the electrified era.A rival to the incoming Volkswagen ID. Polo GTI and Renault 5 E-Tech, it joins a raft of competitors looking to make the same transition.In Australia it would be a direct rival for the Abarth 500e, but there is no official news on whether it will land Down Under. It will need to satisfy the business case to launch in Australia. The hot hatch, which was once offered here in a previous iteration, will face hurdles to remain profitable but offered at a competitive price, given it will need to be shipped over from Europe.This is something preventing several smaller and budget-targeted models from coming to Australia, although occasional exemptions are made for hot hatches, as was the case for the recently-discontinued Hyundai i20 N.Similar issues have prevented the standard E-208 from going on sale in Australia, even though Peugeot went to the trouble of getting it approved and announcing it for an Australian launch, which was then cancelled.Peugeot Australia has been contacted for comment to see if the E-208 GTI will launch in Australia.The brand will show off three production versions of its new EV hatch later this week to celebrate the 100th anniversary of its first 24-hour Le Mans race entry.This will be the first time we will see the final production E-208, following an extended period of development.The car has spawned from the petrol-powered 208, which has been a popular hatchback model across Europe. It will be powered by a single electric motor, producing 209kW and 345Nm, so it can sprint from 0-100km/h in less than six seconds.It features a 54kWh battery, offering a driving range of 350km, according to WLTP standards.This latest reveal could provide more details on the specifications for the car as it nears full-scale production.Peugeot has had a tough time in Australia recently, selling less than 400 units across its range up to May 2026.

This car will change everything you thought about the humble Toyota Corolla.On the eve of the Corolla’s 60th birthday, the Japanese giant has confirmed the GRMN Corolla is headed Down Under.Toyota Australia Vice President Sales, Marketing and Franchise Operations John Pappas said the new GRMN Corolla is the best of both worlds.“This is truly our GR philosophy in action, and has produced an astonishing high-performance driver’s car that is as at home on the racetrack as it is on the road,” he said.It takes the already red-hot GR Corolla hot hatch, and turns the dial all the way up.Spawned from Japan’s Super Taikyu race series and tuned and tweaked at the Nurburgring race track in Germany — dubbed the Green Hell — the GRMN is the brand’s most driver-focused Corolla of all time.The GRMN has just two seats and a rocket of a 1.6-litre turbocharged three-cylinder petrol engine delivering 221kW and 408Nm.It has upgraded front and rear suspension and fatter Michelin Pilot Sport Cup 2 rubber for improved performance on track.Toyota has optimised the all-wheel drive set-up for improved torque delivery and tweaked the power steering to give more feedback during high speed cornering.The Corolla GRMN is leaner than the standard manual GR Corolla, having lost 40kg. There is also a unique instrument panel for greater driver concentration and GRMN design touches throughout.Exterior updates include bonnet and fender ducts for increased ventilation, front side spoiler and large rear wing with five step adjustment for increased aerodynamics.It is only available in two colours: matt black or khaki.Toyota Australia said the Corolla GRMN will arrive in limited numbers from 2027.

For the first time in Australia, electric cars are outselling diesel ones in what appears to be a major turning point for the Australian market.The latest data, compiled from both the Federal Chamber of Automotive Industries (FCAI) and the Electric Vehicle Council, shows registrations of electric cars have more than doubled year-on-year, and now account for just under 20 per cent of Australia’s new car market.This is the culmination of multiple factors, including an influx of affordable Chinese models as the country’s behemoth manufacturers seek export markets to flee tough local conditions, and Australia’s new vehicle efficiency standards (NVES) heavily incentivise lower-emissions models, either to avoid fines or rack up credits.On top of this, skyrocketing fuel prices have clearly made many Australians think twice about committing to another combustion car, and the prospect of government incentives ending further down the track as outlined in the latest federal budget has no doubt only bolstered the latest figures.Digging into the data and one thing becomes obvious - amongst the 10 best-selling EVs, all of them were built in China. In what should come as a warning to legacy automakers yet to embrace “China Speed” as part of their business model in our market, even the most successful models from Tesla and Kia are built in China.This trend looks to continue, with Mazda the next brand to introduce Chinese joint-venture models via the Mazda 6e sedan and CX-6e SUV, both of which use Changan platforms. The Japanese giant will no doubt be betting heavily on these two models to reduce its market-leading projected fine under the new NVES rules.Nissan will also begin to introduce its array of successful-in-China Dongfeng-based models in the coming years, with Suzuki, Toyota and Volkswagen potentially being left behind as they continue to source cars from more traditional manufacturing locations like Japan, Thailand and Europe.May in particular was a bumper one, not just for market leader Tesla, but also for keen newcomers Jaecoo and Geely. BYD dominates nearly half of the top-10 charts, including the Atto 2 and Atto 1, which both arrived in 2026.EV Sales May 2026The year-to-date numbers paint a slightly different, but overall familiar story, with the Model Y managing to maintain its lead over the Sealion 7.Some year-to-date surprises include Geely’s EX5 rising to third place and Jaecoo’s aggressively-priced J5 has largely captured the entry-level EV space.Zeekr has had a huge year off the back of the launch of its 7X as it keeps up with its big order bank, and Kia has managed to hold onto 9th place with its relatively popular EV5.The Tesla Model 3 is in seventh place and is the only sedan on the list.EV sales year-to-date 2026It is hard to say what this chart will look like by the end of 2026, although the complete and ongoing re-shuffle of Australia’s favourite cars looks to continue. One thing is for sure though, China has the market well and truly cornered on fully electric cars in Australia.

The electric vehicle revolution is in full swing after another standout month in Australia. There were 21,303 EVs sold in May 2026, as they continue to take hold at the expense of petrol- and diesel-powered cars. SUVs remain the dominant player in the electric segment, accounting for nine of the 10 best sellers.Tesla’s smashing May performance was headlined by 5605 sales for its Model Y SUV, cementing its position as the leading EV in Australia.The Model Y also claimed the title for the best-selling car in Australia last month.  The Jaecoo J5 EV had its best month on sale since it hit Aussie showrooms at the start of this year, selling 2126 units, up from less than 700 in April. This makes the J5 the best-selling small SUV in the country currently, even outselling its closely related and cheaper petrol sibling, the Chery Tiggo 4. The Geely EX5 also surged up the sales charts, achieving 1814 sales, while the BYD Sealion 7 experienced another bumper month, with 1538 sales. The Zeekr 7X rounds out the top five following a continued solid performance since its introduction late last year. BYD’s budget EV trio the Atto 3, Atto 2 and Atto 1 shifted more than 2000 units between them.The BYD Seal (580) is the only non-SUV on this list.Every car in the top 10 selling EVs for May is primarily built in China, with none coming from legacy brands. Some of the other EVs to miss out on a top 10 spot include the MG4 as well as Kia's EV3 and EV5 duo.Top selling electric cars May 2026

The first arrival of a BYD-owned shipping vessel to Australia has caused a stir as the brand’s top brass is confident troubles with supply in its home nation won’t affect Australian demand.The BYD Zhengzhou docked at the Port of Melbourne carrying 4809 BYD vehicles destined for Australian customers, part of a promise to deliver 30,000 new cars in the second quarter of 2026.BYD has already more than doubled its sales in the first quarter of 2026 compared to Q1, 2025, and if 30,000 vehicles are added to the existing count before halfway through the year, BYD will finish the first half with a remarkable 55,000 new cars sold in Australia.But on the morning media were given a tour of the BYD Zhengzhou in what could arguably be called a fanfare event, Toyota Australia announced it “has secured an additional 10,000 vehicles for local customers in 2026”.Toyota sold 59,675 cars in Q1 to BYD’s 25,243. BYD also remains behind Mazda, Kia, and Ford.The timing suggests Toyota wanted to remind Australian buyers who is number one in the sales race, but BYD’s commitment to meeting demand for electric vehicles (EVs) and plug-in hybrids (PHEVs) is clear, and the brand’s top brass didn’t hesitate to say as such.Liu Xueliang, Group Vice President of BYD and General Manager of BYD Asia-Pacific Auto Sales Division, told Australian media during a conference in Port Melbourne that despite battery supply challenges in the brand’s home market, BYD would meet demand in Australia.Via interpreter, Mr Liu told CarsGuide that even at home in an EV-saturated market, BYD’s outlook is optimistic.“Sales in China have begun to recover in Q2, we achieved 380,000 units sold in May just past. “Growth has tightened a bit, but that does not affect supply to markets including Australia.“This is just one of our ships, but we’ve got many other ships that are arriving in Australia.”While Mr Liu wouldn’t be drawn on Toyota’s announcement, the theme that returned many times during the conference was BYD’s ownership of its own supply chain, and the control that grants.Given Australia’s demand for plug-in hybrids and EVs in 2026 is higher than it has been by huge margins, Liu Xueliang said this wouldn’t be the first time a BYD-owned ship would be seen in an Australian port.